Settled/Pre-Settled Status, Indefinite Leave to Remain, Indefinite Leave to Enter, Right of Abode
Getting a mortgage to buy a property in the UK as a foreign national is fairly straightforward if you have settled or pre-settled status, indefinite leave to remain, indefinite leave to enter or have the right of abode. In fact, apart from providing a share code or other documents to prove your status, you would be subject to the same eligibility criteria as any UK citizen.
Other Visa Types
Even if you do not have pre-settled or settled status, indefinite leave to remain, etc you could still get a mortgage as a foreign national in the UK if you are here on a particular Visa type such as Global Talent, Global Business Mobility, Graduate, Skilled Worker, Health & Care Worker visas and more. If this applies to you, then there are some extra criteria you must meet in order to make an application.
Lenders may require you to have lived in the UK for a minimum period of time or require you to meet their minimum income criteria, and often you will need a higher deposit amount which must come from your own savings and not be gifted to you from a family member or friend.
ID and Proof of Address
Your ID and address history will need to be verified by your mortgage broker, mortgage lender and solicitor. Make sure your passport is valid and signed if required, and if you have a UK driving licence, make sure it shows your current address.
To make the application process as efficient as possible, it is a good idea to check your documents ahead of time and make sure your name and address are up to date on all of your documents, including bank statements and payslips. If your documents are still in your maiden name, then we would need to see your marriage certificate too.
You will need to provide 3 years of address history. Whilst changing your address does not directly impact your credit score, you are more likely to miss bills if they were sent to a previous address. It is a good idea to check your credit file to make sure there are no markers on there that could jeopardise your chances of being accepted for a mortgage.
Deposit
The lender and the solicitor will need to check the source of your deposit. Some lenders will require the funds to have been in a UK bank account for a minimum of 3 months, and you will be asked to provide statements to prove the source of your deposit. Please be aware that lenders and solicitors can ask for a longer paper trail if they deem it necessary.
Many lenders will accept a gifted deposit, and this could come from another country. The same checks will need to be done according to the solicitor’s due diligence and anti-money laundering policy. The giftor/donor’s ID may need to be verified, and some statements or documents may need to be translated into English by an official.
Income
If you are employed on a permanent contract and receive a regular salary, then lenders usually require 3 months’ worth of payslips, along with a P60 if possible, to verify your income. They will cross-reference the amounts with the ones shown on your bank statement to make sure they can see the same credit going into your account. Other elements of income such as regular bonuses, overtime and commission can also be taken into consideration by lenders when calculating your affordability.
If you have only recently started working for a company, then a copy of your contract or a letter from your employer may be required by the lender to verify your income and terms of employment.
If you are self-employed, then most lenders require 2 years of SA302’s and Tax Year Overviews, although some lenders may only require 1 year.
Temporary contract, Zero Hours Contracts and Agency Work
Some lenders will accept employed income if you are working through an agency or are on a zero hours or temporary contract as long as you have been in the same type of employment for at least 12 months. They may ask for income evidence for the whole of your employment and take averages into consideration.
Credit Score
Some foreign nationals may not have a very good credit score – not because they have been bad at managing their credit, but because they just don’t have enough credit history to prove their ability to manage it.
To build your credit score, it is a good idea to be registered on the electoral roll at your current address and make sure you manage your financial commitments well. There are several credit agencies in the UK that provide information and tips on how to build up your credit history.
5% Deposit, £5k Deposit and Shared Ownership
Some foreign nationals will qualify for low deposit mortgages and shared ownership schemes. These have their own set of eligibility criteria that vary from one lender to another. If you would like to explore these options, we are very happy to discuss them with you in more detail.
Buying a property in the UK can be daunting the first time you do it, especially if you did not grow up here or know how the process works. We are here to help all of our clients and can offer advice on the entire process, from arranging viewings and making offers through an estate agency, to instructing and assisting with solicitors’ paperwork.
It is never too soon to talk to a mortgage broker if you have plans of home ownership one day. We are always happy to offer advice on where you are now and what you need to do to get you to the point of being ready to make an offer on a property.
Your home/property may be repossessed if you do not keep up repayments on a mortgage.
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances.
