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Can you get a foreign national mortgage in the UK?
Yes, getting a mortgage as a foreign national is totally possible in the UK. You will be classed as a foreign national if you are not a UK citizen. This is likely due to you not having a UK passport, maybe because you don’t have the right to one.
Foreign national mortgages aren’t a special product that are different to what UK citizens would be offered. Instead, they are the same. The only difference is to do with how the lenders assess your application. You’re assessed slightly differently because you will be seen as a bigger risk.
Every, lender will have different assessment methods, so navigating the market can be tough at times. Using an expert mortgage broker can streamline the process and increase your chances of obtaining a mortgage. If you’re a foreign national looking for a mortgage, why not reach out today?
Can you get a foreign national mortgage in the UK?
Yes, getting a mortgage as a foreign national is totally possible in the UK. You will be classed as a foreign national if you are not a UK citizen. This is likely due to you not having a UK passport, maybe because you don’t have the right to one.
Foreign national mortgages aren’t a special product that are different to what UK citizens would be offered. Instead, they are the same. The only difference is to do with how the lenders assess your application. You’re assessed slightly differently because you will be seen as a bigger risk.
Every, lender will have different assessment methods, so navigating the market can be tough at times. Using an expert mortgage broker can streamline the process and increase your chances of obtaining a mortgage. If you’re a foreign national looking for a mortgage, why not reach out today?
What lending criteria is there for foreign nationals?
There is a selection of things lenders will typically expect from a foreign national when applying for a mortgage. They will expect you to have:
- lived in the UK for at least two years,
- a permanent job in the UK,
- a UK-held bank account,
- permanent residence rights in the UK, or an appropriate visa or work permit.
On top of this, foreign national mortgage lenders will also assess the following, as they would with any residential mortgage:
- Your income and any regular expenses – these will influence how much you can borrow.
- Your credit history – a better history, will not only improve your chances of success but can affect the interest rate and the amount you can borrow.
- The amount of deposit you have – the loan-to-value (LTV) you require on a property, will also be a big influencing factor. The larger deposit you have the more you can borrow. Furthermore, you will open yourself up to a wider selection of products, increasing competitiveness.
The majority of visas that permit you to work in the UK will be accepted by lenders. Longer term visas are much more preferable, as a lender wants to know you will stay in the country for as long as possible. If you leave the UK and fail to make payments, its much harder for lenders to recover their money.
Some visa types we commonly deal with and can obtain mortgages for include:
- EU citizens
- Family visas
- Tier 1 or Tier 2 work visas
Foreign nationals who are in the UK on a Tier 5 visa – which includes charity workers, religious workers and government-authorised exchange workers – are considered temporary workers and therefore would not be likely to be accepted for a UK mortgage.
How much can you borrow as a foreign national?
As with any residential mortgage, there is no real cap on what anyone can borrow. Instead, it will depend on a variety of personal factors. The main factor that determines your borrowing capabilities is the size of your deposit. Essentially, the more money you can put down the more you can borrow.
Lenders will also look at your annual income to assess how much you could borrow. The majority of lenders will allow you to borrow between 3.5 to 4.5 times your income, as a foreign national. However, if certain circumstances regarding your application allow for it, you could borrow closer to 5.
Ensuring you put yourself in the most favourable position before applying can significantly increase the amount you can borrow. For example, if you make £30,000 but have a mediocre credit score and only have an average deposit, you may only be able to borrow 4 times your income. That would be a total of £120,000.
However, if you have a really good credit score and a larger than average deposit, you could borrow 5 times your income. Therefore, giving you a total of £150,000 – a £30,000 increase from the previous example.
How to get a foreign national mortgage?
Once you have a property in mind, and are happy you meet the listed criteria above, it might be time for you to start looking to apply. While it’s not mandatory, using a mortgage broker is the best starting point. The complex nature of these mortgages can make it very challenging if you are looking to apply by yourself.
A mortgage broker will be able to give you tailored advice based on your circumstances. Furthermore, their experience will allow them to pair you with the most suitable lender.
When you are ready to put in an application, your broker will be able to prepare it for you, ensuring your situation is shown in the best possible light. If they think it is currently not the right time for you to apply, they will advise against it.
If you’re a foreign national in the UK looking to get a mortgage, reach out today! Our team are on hand to discuss your situation over a free no-obligation consultation.