I’m on a Visa, can I get a mortgage?
If you’re living in the UK on a visa, and don’t yet have ILTR (Indefinite Leave To Remain) then it may still be possible to obtain a mortgage on a property in the UK. However, there are specific requirements that differ between lenders.
Some of the factors that might affect your eligibility include:
The type of Visa you hold. Below are the 3 main types of Visa:
Spousal Visa – This is where your partner or spouse is over the age of 18 and is a British or Irish Citizen and have settled status also known as indefinite leave to remain.
You can also apply for a spousal Visa if your partner is from the EU, Switzerland, Norway, Iceland or Liechtenstein and have pre-settled status – they must have started living in the UK before 1 January 2021 or have a Turkish Businessperson visa or Turkish Worker visa
You can also get a spousal visa if you have protection status (leave to remain as a refugee, permission to stay as a refugee or a person with humanitarian protection)
Tier 1 working Visa – The Tier 1 visa category is designed for individuals who are deemed to have exceptional skills, talents, or investments that contribute significantly to the UK’s economy and culture. The visa category is divided into several subcategories, each catering to different types of applicants:
(Exceptional Talent): This subcategory is for individuals who possess exceptional skills in the fields of science, humanities, engineering, the arts, and digital technology. Applicants in this category must first obtain an endorsement from a designated endorsing body in their respective field.
(Entrepreneur): Aimed at individuals who are looking to establish, take over, or be involved in the running of a business in the UK. Applicants in this category must demonstrate a viable business plan and secure the necessary funding.
(Investor): Geared towards high-net-worth individuals looking to make a substantial financial investment in the UK. The investment thresholds vary, and successful applicants and their families can enjoy certain privileges.
(Graduate Entrepreneur): Intended for international graduates who have completed their studies in the UK and wish to establish a business. Applicants need an endorsement from their university or an approved endorsing body.
Tier 2 working Visa – A Skilled Worker visa allows you to come to or stay in the UK to do an eligible job with an approved employer by the Home Office. You must have a certificate of sponsorship from your employer with information about the role you have been offered in the UK. The job you do must be on the list of eligible occupations and must have a minimum income requirement (this will depend on the type of work you do)
Other considerations include:
-
Visa validity
Most lenders will want you to have a minimum of 12 or 24 months left on your visa at the time of application, however allowances can be made where there is less than this amount of time but will be down to underwriters’ discretion.
-
Credit history
In order for a lender to do a credit search they will want to ensure there is a sufficient amount of information based on how you manage your finances to make an informed decision whether to lend. Most lenders will want you have held a UK current account as a minimum for at least 6 months. However please bear in mind it can take longer than 6 months to build up your credit file.
-
Deposit
This can vary from lender to lender but the majority of lenders will require you to have a 25% deposit at the time an application is submitted. However, some lenders may lend against a smaller deposit, potentially as little as 5%. In order to be eligible for this you would likely either need to earn over £100,000 or at least one other applicant must be a full UK resident.
-
Being albe to provide evidence to confirm residency status
- Copy of your valid passport
- Valid visa
- Copy of a valid Biometric card or government share code
- Utility bill dated in the last 3 months with your name & UK address
- The usual proof of income and bank statements which all mortgage applicants need to provide
If this has got you thinking, we’d be delighted to help. Get in touch and we’ll be help you understand what’s possible, or sign up to our monthly newsletter, to keep your finger on the pulse.
William Sproule – 10th August 2023
