How To Get Mortgage On Visa
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People from all around the world travel to the UK and settle in the country. However, being on a VISA is a factor that should be considered before purchasing a new home in the UK.
If you live in the UK and are still on a work VISA, you can purchase a property on a mortgage, even if you do not have an ILTR (indefinite leave to remain). That being said, different mortgage lenders have different requirements when it comes to getting a mortgage while being on a work VISA.
This is why it is important to work with a skilled and experienced mortgage broker. These licensed professionals will help you find the best deals depending on the VISA you have and the type of property you want to purchase.
Let’s now have a look at a few factors that influence you getting a mortgage in the UK while being on a VISA.
The VISA Type
The type of VISA you hold has a direct impact on the mortgage deals you can receive and the properties you can purchase in the UK. Here are the three major VISAs an individual can hold in the UK:
Spousal VISA
As the name suggests, this is the type of VISA you hold if your spouse is a UK citizen and is above the age of 18. Here, your partner should have settled in the country and have an indefinite leave to remain. You can also opt for this VISA if your spouse has a well-settled status in the UK and belongs to the European Union. This requires them to be living in the UK since before January 1, 2021.
Tier 1 Working VISA
This is the VISA designed for individuals with distinguished talents, skills, or investments that actively contribute to the UK’s economy. This VISA is further classified into different sub-categories as follows:
- Exceptional Talent: This subcategory is designed for people possessing exceptional skills in various fields like the arts, sciences, humanities, etc. To obtain their VISAs, these individuals need to get an endorsement from designated endorsing bodies operating in their specific fields.
- Entrepreneur: This subcategory is created for individuals who wish to take over, establish, or become an active part of a business in the country. They should present a valid business plan for operating in the UK to obtain their VISAs.
- Investor: Here, VISAs are given to HNI (high-net-worth individuals) who want to make substantial investments in the country.
- Graduate Entrepreneur: This subcategory is for international graduates who intend to establish their businesses in the UK after graduation. Here, applicants need to present an endorsement from their respective universities to get their VISAs.
Tier 2 Working VISA
This is the Skilled Worker VISA that allows individuals to stay in the country to perform suitable jobs offered by approved employers by the Home Office. To get these VISAs, individuals need to have a sponsorship certificate from their employers regarding the roles they will play. Moreover, it is important for their jobs to be enlisted as eligible occupations, fulfilling the minimum income requirement.
Understanding The Key Requirements For a UK Visa Mortgage
Some of the key factors mortgage lenders will look at when offering mortgages on Visa. With many mortgage lenders offering mortgages on visa their are many mortgage options for foreign nationals.
Our mortgage guides about how to get mortgage on visa explains all the frequently ask questions.
Validity of your VISA
How long your VISA is valid for also plays an important role in getting a mortgage in the UK. Most mortgage lenders prefer working with clients who have at least 12 to 24 months until their VISAs expire. However, underwriters’ discretion can push lenders to make necessary amendments to their criteria.
Your credit history
Like all other cases, your credit history will determine the mortgage you get. If you are on a VISA, mortgage lenders are likely to assess your credit history more strictly. Make sure your credit score is impeccable without a history of miss payment and heavy debts.
Mortgage lenders take this aspect very seriously as it helps them check if you will be able to afford the mortgage you are looking for. Income aside, lenders will use your credit history to have a complete insight into your affordability.
With out a required credit score your mortgage application either will be rejected or lender may ask for more deposit.
Some of the things can help to improve your credit score are;
Paying off bills on time.
Use your credit cards and pay off in full.
Never withdraw cash from credit card.
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The Deposit You Make
The deposit or down payment you are ready to make will also influence your chances of getting a mortgage while having a VISA in the UK. Lenders often ask for a larger deposit from clients with VISAs. You may be asked to set aside a deposit as high as 25%. While very few lenders would allow lower rates, paying a bigger deposit will help you reduce your debt and manage your burden. Many lenders also set a minimum income limit to allow clients to make smaller deposits. Making a joint application where the other individual is a UK resident can also help you get a better deal.
What Documents Required For Mortgage on Visa?
The Documents required for a visa are the same as a normal mortgage application. But sometimes the lender may ask for additional address proof if you are living there for less than 3 years. Having the deposit increased to 25%, some lenders drop the minimum credit score requirements. The following documents are required while making a mortgage application.
- Bank statements
- Income proofs
- Proof of ID and address
- Deposit proof
- Copy of visa, Evisa or Share code.
What Are The Lender’s Requirements for Mortgage on Visa ?
High street banks like Halifax offer mortgages to visa applicants if your deposit is less than 25% but you will need a minimum income of £75000 or you will have to have been in the UK for 5 years. Increasing your deposit to 25% would make Halifax consider your mortgage application even if you are in the UK for less than 5 years or don’t earn £75000.
Barclays would offer mortgages to visa applicants if you are in the UK for a minimum 2 years but they require a minimum deposit of 10- 15%.
Skipton building society can offer mortgage on visa with little deposit of 5% but need good credit profile and minimum 6 months valid visa at the application.
Many Other lender will offer a mortgage now a days like HSBC and Nationwide with 15% deposit with out indefinite to remain.
Other lenders like Natwest or Santander do offer mortgages for people on visas but they require a minimum deposit of 25%.
What Evidence of Confirmed Residency Lenders Ask?
If you are able to provide mortgage lenders with evidence of confirmed residency in the UK, you can get better mortgage deals while having a VISA. For this, the lenders will ask for documents like a copy of your passport, a copy of your Biometric card, your government share code, a utility bill coming in the last three months in your name or a UK address, and your proof of income along with bank statements.
Talk to MariannaFS for Mortgage with out Indefinite Leave to Remain.
Depending on the type of mortgage you want and the mortgage lender you approach, there may be many more factors that influence the mortgage you get while having a VISA in the UK.
Make sure you are assisted by a trusted mortgage broker in the UK to help you navigate every situation and get a deal that best suits your circumstances.
We have expertise securing a mortgage for visa holders. Get in touch with us via Contact Us to get your mortgage sorted in no time.
