Getting a Mortgage on an Ancestry Visa
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Getting a Mortgage on an Ancestry Visa
Sam Bull explains how to go about getting a mortgage on an Ancestry Visa.
What is an Ancestry visa?
A UK ancestry visa allows Commonwealth citizens to live and work in the United Kingdom for five years, subject to them having a grandparent who was born in the UK.
Can you get a mortgage on an Ancestry visa in the UK?
Yes, mortgage lenders are happy to offer a mortgage to applicants on an Ancestry visa. This is a long-term, five-year visa that does allow applicants to work, so mortgage lenders are quite happy to lend on that basis.
The terms of the mortgages available will all depend on the client’s personal circumstances, however.
Which lenders will accept these applications? What are the eligibility criteria to get a mortgage on an Ancestry visa?
Many high street mortgage lenders, such as Halifax, NatWest, and Barclays, are happy to accept mortgage applications from applicants on an Ancestry visa.
However, all mortgage lenders have their own eligibility criteria that the applicant needs to meet. Typical criteria for applicants on an Ancestry visa will be how many years you have lived in the UK, the length of time left on the current visa, and whether you are applying for a mortgage in joint names with a British national.
Lenders will also consider your salary, and may be more comfortable lending to an applicant on an Ancestry visa if their salary is more than £50,000. The final consideration is the percentage deposit you have.
What deposit do I need? How much can I borrow on a mortgage if I have an Ancestry Visa?
Applicants on an Ancestry visa would need a minimum of a 5% deposit to buy a house in the UK, depending on their circumstances, as discussed in the last question. In some cases, a 10% deposit or potentially higher may be needed.
Can I get a mortgage without indefinite leave to remain if I have bad credit?
If you have bad credit without indefinite leave to remain, you will likely not pass a high street credit check. However, there are plenty of other mortgage lenders who can consider your application. They will be on slightly different terms and potentially have a slightly higher interest rate.
Depending on how bad the credit is, a higher deposit may also be needed. Again, the client’s individual circumstances will determine exactly what terms they’ll get.
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Can I get a mortgage in the UK if I’m self-employed and on an Ancestry visa?
Yes, you can get a mortgage in the UK if you’re self-employed and on an Ancestry visa.
The visa itself is usually fine, because it’s usually a five-year visa that leads to settlement.
The bigger focus will be on your self-employed income. Most mortgage lenders are going to want at least two years of accounts or personal tax returns to show that the income is sustainable for the full term of the mortgage.
Can I get a Buy-to-Let mortgage in the UK if I have an Ancestry visa?
Yes, many mortgage lenders are happy to offer Buy-to-Let mortgages to applicants living in the UK on an Ancestry visa. The exact terms a mortgage lender will offer will depend on the client’s individual circumstances, including how long they’ve lived in the UK and how much is left on their existing visa.
However, Buy-to-Let mortgage lenders generally expect applicants to have at least a 25% deposit and a minimum personal income of around £25,000.
How does remortgaging work with an Ancestry visa? Are there any differences?
There aren’t really many differences in a remortgage. Lenders are happy to offer remortgages to applicants on an Ancestry visa.
The eligibility criteria is pretty much the same as we’ve already discussed. Lenders will check how long the applicant has lived in the UK and how much is left on the visa.
In terms of a deposit, mortgage lenders will generally do a valuation on your home to work out how much equity you have in the property.
How do I get a mortgage in the UK if I have an Ancestry Visa? How can a mortgage broker help here?
If you’re on an Ancestry visa and want a mortgage in the UK, the good news is that it’s very possible. Most mortgage lenders are comfortable with an Ancestry visa as it’s a long-term visa that leads to settlement.
They look at when you moved to the UK and how much time is left on your visa. They’ll also look at your income, your credit history, and the deposit that you’ve saved.
That’s where a mortgage broker can be helpful, as we know exactly which lenders are happy to accept these types of visas. We will present your application to a mortgage lender in a way that will hopefully get you approved the first time. Choosing a mortgage broker like JB Mortgages can make the process smoother and less stressful.
Key Takeaways:
- Mortgage lenders are happy to offer mortgages to applicants on an Ancestry visa because it is a long-term, five-year visa that allows them to work and typically leads to settlement. Many high street lenders, such as Halifax, NatWest, and Barclays, accept these applications.
- Eligibility criteria often include how many years the applicant has lived in the UK, the length of time remaining on the current visa, and whether the application is in joint names with a British national. Lenders may be more comfortable lending if the applicant’s salary is more than £50,000.
- Applicants on an Ancestry visa generally need a minimum of a 5% deposit, although individual circumstances may require a deposit of 10% or potentially higher.
- Self-employed applicants can secure a mortgage, but the primary focus is on income sustainability, which usually requires providing at least two years of accounts or personal tax returns.
- Buy-to-Let mortgages are also available, but lenders generally expect applicants to have a minimum deposit of 25% and a minimum personal income of around £25,000. For applicants with bad credit and no indefinite leave to remain, alternative lenders can be considered, though terms may involve a higher interest rate and deposit.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.
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