Mortgages For Foreign Nationals

Can foreign nationals get a UK mortgage?

Yes, foreign nationals can get a UK mortgage. It will depend on the situation – and mortgage lenders all have their own criteria.

You don’t have to live in the UK to buy a property here, either. Plenty of people purchase homes in the UK while living abroad – and vice versa. If an applicant is paid in euros or another currency, some lenders are happy to proceed with that, although they will factor in exchange rate risks.

If you’re an EU citizen, you can absolutely get a mortgage in the UK. You usually need the right visa or settled status. It can be a more specialised process, but that’s where a mortgage broker can help. We know all the lenders that deal with these types of mortgages.

What visa or residency status do you need to be eligible for a UK mortgage as a foreign national?

There is no single visa or residency requirement across all UK mortgage lenders, as they all have their own criteria. Having indefinite leave to remain or settled status in the UK provides the widest choice of options.

However, many mortgage lenders are also happy to accept pre-settled status and other visas. These include Skilled Worker visas, Health and Care Worker visas, Global Talent visas, UK Ancestry visas, and Spouse or Family visas.

Some mortgage lenders require a minimum period in the UK or a minimum time remaining on your visa, while others have no minimum requirements. Your immigration status will normally be verified using your eVisa or your share code.

What are the challenges when it comes to applying for this type of mortgage?

The biggest challenges usually come down to the paperwork and mortgage lender restrictions. Some mortgage lenders won’t work with certain countries for regulatory and security reasons, so where you’re based and the source of your deposit does make a difference.

You don’t need a UK passport to get a mortgage, but you do need proof of ID to pass mortgage lenders’ anti-money laundering checks. This is usually the applicant’s foreign passport and visa. The type of visa matters too, because mortgage lenders will want to see that you’re allowed to work and stay in the UK for a reasonable amount of time.

Proof of deposit is also important, as lenders want to know exactly where your money is coming from, especially if it’s from overseas. Lenders will potentially want to see foreign bank statements in English – so they may need to be professionally translated.

Sanctions also play a role. If funds or countries are on a sanctions list, mortgage lenders simply cannot proceed.

How do UK lenders verify income and employment if you’ve recently moved to the country?

UK mortgage lenders will typically request your latest three months’ payslips and bank statements showing your salary being credited into your UK bank account. If it is very recent employment, they may also want a copy of your employment contract and your employer’s details for an employment reference.

You will also usually need to provide a copy of your passport, immigration status, UK address history, and evidence of where your deposit came from. If you have only recently started working in the UK, the mortgage lender may request additional evidence or assess the application manually.

Overseas income is also accepted by a few mortgage lenders, and that will include if you are paid in a foreign currency. Foreign documents that are not in English may need to be translated into English.

How much deposit is needed for a foreign national mortgage and how much can I borrow?

Lenders in general are happy to lend to foreign nationals. The size of deposit will depend on how long the applicant has lived in the UK for and also how long is remaining on their visa.

We can usually proceed with as little as a 5% deposit, but if an applicant has only just moved to the UK, they may need a higher deposit amount.

A typical mortgage is between four and five times an applicant’s income – this is the same for foreign nationals too. You may be able to borrow slightly more or slightly less depending on your monthly expenditure.

Do foreign nationals need a bigger deposit than UK citizens when buying property?

Not necessarily. Some foreign nationals can obtain a mortgage in the UK with a deposit as low as 5%, particularly if they have permanent residency or settled status.

Applicants on temporary visas may be restricted to 90%, 85%, or 75% loan-to-value (LTV). This generally means a deposit range between 5% and 25%.

The deposit you require will usually depend on the mortgage lender’s criteria. They will review factors such as your visa status, income, how long you have lived in the UK, and your UK credit history.

Can foreign nationals get Buy to Let properties?

Yes, foreign nationals can get a Buy to Let mortgage. Applicants will need at least a 20% deposit in this case, and some mortgage lenders require 25%.

You would be subject to normal lending criteria, including how long you have lived in the UK, how long is left on the visa and the type of visa it is.

How do I apply for a mortgage as a foreign national?

You’ll apply the same way as anyone else. Lenders need foreign nationals to have all the documents ready upfront – passport, copy of the visa, payslips, bank statements and proof of deposit.

We start with a fact-find with our clients and then get them an Agreement in Principle. This is followed by the full mortgage application, and we try to get a formal mortgage offer within two weeks.