The UK property market can be challenging to navigate, even for those who have lived here all their lives. For non-UK nationals residing in the country, the process can feel even more complex. However, many lenders are open to offering mortgages to non-UK nationals, provided certain criteria are met. In this guide, we’ll break down what you need to know if you’re a non-UK national looking to secure a mortgage.
Can Non-UK Nationals Get a Mortgage?
Yes, non-UK nationals can obtain mortgages, but the terms and requirements may differ depending on your residency status. Lenders will want to know how long you have lived in the UK, your visa status, your income, and your credit history. Here’s a closer look at what factors will affect your mortgage eligibility:
Residency Status
Your residency status will play a significant role in determining your eligibility for a mortgage. Here’s how it breaks down:
- Permanent residents: If you have indefinite leave to remain (ILR) or settled status under the EU Settlement Scheme, you are likely to be treated similarly to a British citizen by most lenders.
- Temporary residents: If you’re living in the UK on a temporary visa (such as a Tier 2 work visa), some lenders may still offer you a mortgage, but you might face stricter criteria or require a larger deposit.
Deposit Requirements
Non-UK nationals are often required to put down a larger deposit compared to British citizens. While UK nationals can sometimes secure a mortgage with as little as a 5% deposit through schemes like Help to Buy, for non-UK nationals, these options are more restricted. That said, it’s not impossible to find a lender willing to accept a 5% deposit if other criteria are met, such as a strong credit history or stable income. However, most lenders will require a deposit of around 20-25%, especially for temporary residents.
Credit History
A strong credit history is crucial to securing a mortgage. For non-UK nationals, this can be a challenge, especially if you’ve only recently moved to the UK and haven’t built up a credit record here. Many lenders will accept overseas credit histories, or they might consider your UK credit record after a few months of being in the country. If you’re new to the UK, it’s worth taking steps to build your credit profile as soon as possible.
Visa Types
The type of visa you hold can influence your mortgage application. Lenders tend to favour long-term or permanent visas, such as:
- Indefinite Leave to Remain (ILR)
- EU Settled Status
- Long-term work visas (e.g., Tier 2 or Tier 5)
Temporary visas, or those close to expiring, can present more challenges. In some cases, lenders may request that your visa has a certain amount of time remaining – usually at least 12 months.
Income and Affordability
Lenders will assess your income to ensure you can afford the mortgage repayments. If you’re employed in the UK, this process is straightforward. If you have income from overseas or a combination of UK and foreign income, some lenders might still consider your application, but it may require more detailed evidence.
Specialist Lenders
If you’re struggling to find a mainstream lender willing to provide a mortgage, there are specialist lenders who cater to non-UK nationals. These lenders are often more flexible but may offer mortgages with higher interest rates or require a larger deposit.
Tips for Securing a Mortgage as a Non-UK National
Here are some tips to improve your chances of securing a mortgage as a non-UK national:
- Build a UK credit history: Register to vote if eligible, open UK bank accounts, and ensure you pay any bills on time to build your UK credit profile.
- Save a larger deposit: While 5% deposit mortgages are possible, especially through specific schemes, aiming for at least 20-25% will give you access to a wider range of lenders and more favourable rates.
- Consider a joint application: If your partner is a UK national or has permanent residency, applying together can strengthen your case.
- Speak to a mortgage broker: A broker who understands the unique challenges non-UK nationals face can help you find a lender more likely to approve your application.
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
