Fill out our quick and easy Mortgage Affordability calculator below. We only require a few details to see how much you may be able to borrow.
NO CREDIT CHECKS!
What is a Tier 2 visa mortgage?
Just because you are in the UK on a Tier 2 visa or skilled worker visa, it doesn’t mean you need to apply for a special mortgage. Instead, you will apply for a standard mortgage, although the lender will assess you slightly differently.
As well as the usual checks, like a review of your finances and credit history, lenders will also look at how long you have lived in the UK and how long is left on your current visa. These factors will play an important role in your applications success.
Each lender will have slightly different requirements, so speaking to an experienced mortgage broker who knows the market can ensure you’re paired with the right one.
Can I get a mortgage on a Tier 2 visa?
Getting a mortgage whilst being a Tier 2 visa holder can be more complicated than if you were a UK citizen. However, don’t let this discourage you. Understanding what a lender will look at can significantly help you prepare before you apply for a product.
You can split out what lenders will look at into two sections. The first being factors specific to Tier 2 visa holders and the second being general affordability and assessment factors.
Tier 2 visa specific factors:
- Lenders will want to know the length of residency you have in the UK. This is because they want some assurance you’ll stay in the UK for the duration of the mortgage. They may prefer applicants who have been a resident for a minimum period, like 2-3 years.
- The remaining validity of your Tier 2 visa is another crucial element. The mortgage term shouldn’t extend beyond your visa expiry. Renewals might be considered, but lenders much prefer the stability that is given if the visa extended beyond the mortgage term.
General affordability checks that apply to all applicants:
- Your income and employment status will be assessed. A steady income and a strong employment history are essential.
- Having a good credit history is key. A good credit score shows responsible financial management and mitigates the risk a lender is exposing themselves to by lending to you.
- Your deposit amount can influence the product a lender offers you. If you provide a larger than average deposit, a lender will see this as less risky, therefore they may reduce the interest charged on your product.
- Your current debt-to-income ratio. This shows how much of your income goes towards existing debts. A lower ratio indicates better affordability, this is because you will essentially have a small amount of debt compared to your income.
What do I need to apply for a Tier 2 visa mortgage?
Most of the information you will be required to show is the same as any UK citizen. However, you will also need to give proof of your visa to the lender. Below we have highlighted all the documentation required when applying:
- Proof of ID – this will typically be your passport and visa. A lender will need to see how long your visa is valid for.
- Proof of income – this can be things like payslips and your employment contract.
- Proof of address – to prove the address on your ID, you can show recent bills or a council tax statement.
- Proof of expenditure – lenders will need to see your outgoings to determine if you can afford a mortgage. This can be shown through things like bank statements.
- Proof of deposit – certain lenders may require proof of deposit. This can be proved through your bank statements.
How much deposit will I need?
The minimum deposit requirements if you are on a Tier 2 visa will be the same as if you were a UK citizen. Providing you comfortably meet a lenders criteria, Tier 2 visa mortgage deposits will typically need be to around 10% of the property’s value.
In some cases you may only require 5%, although this is very rare. Providing a larger than average deposit will open up your options, as well as allowing you to access more competitive mortgage products.