Head of Content
Mortgage Advisor & Director
Mortgages for Foreign Nationals
If you're a foreign national looking to buy a property in the UK, you might be wondering if you can get a UK mortgage.
As the UK property market becomes increasingly attractive to overseas buyers, foreign national mortgages are growing in popularity. However, getting a mortgage as a foreign national can be more difficult than if you were a UK citizen or resident.
Your best chance of getting your mortgage application approved is by getting expert mortgage advice. At Teito, we have a team of expert mortgage advisers who can help you secure a mortgage as a non-UK resident. As a whole of market broker, we work with 90+ mortgage lenders including high street banks and building societies, as well as specialist lenders, to find you the best mortgage deal.
Start comparing mortgage deals now and you could have a mortgage in principle in minutes.
What is classed as a foreign national mortgage?
A foreign national mortgage is a mortgage for people who are not UK citizens or residents or were born outside of the EU. Foreign national mortgages are also sometimes referred to as 'expat mortgages'.
When it comes to mortgages for foreign nationals, it's important to be aware that the criteria for borrowing are usually different to that of UK citizens or residents. For example, the majority of lenders will require a larger deposit (usually around 30-40%) and proof of income in order to be eligible for a mortgage.
There is no such thing as European credit history; mortgage providers will need you to see that you have a credit record in the UK.
Is it harder to get a UK mortgage as a foreign national?
If you're a foreign national looking to buy a property in the UK, you may find it challenging to get a mortgage from a traditional high street lender.
This is because the majority of lenders will only offer mortgages to people who are residents of the UK, as well as various other factors. As your credit history is likely to be based overseas, it might be difficult for lenders to assess your financial history.
This is where using a mortgage broker can be beneficial. A good mortgage broker will have a wide range of contacts within the industry and should be able to find you a lender who is willing to offer you a mortgage, even if you're not a UK resident.
Do I need a Tier 2 Visa for a foreign national mortgage?
No, it is not always necessary to have a Tier 2 Visa to get a mortgage in the UK, as there are other types of UK work visas that are accepted by lenders. As with all lending, mortgage providers will want to know that you can make mortgage repayments on time and in full.
They'll want to know how long you've been in the UK, and how long is left on your Tier 2 visa. It's important to note that most lenders will only offer a mortgage to people who have been in the UK for at least 2 to 3 years.
Do I need a UK bank account?
Yes, you will need a UK bank account in order to get a mortgage. This is because your mortgage payments will be taken from your UK bank account on a monthly basis.
Here are a few other tips for building your credit rating in the UK:
- Set up some direct debits.
- Pay bills on time.
- Spend sensibly on a credit card, and make repayments.
- Register to vote.
Can I get a mortgage on a spouse visa in the UK?
Yes, it is possible to get a mortgage in the UK on a spouse visa, as it gives you permission to work in the UK.
It's important to note that most lenders will only offer a mortgage to people who have been in the UK for at least 2 to 3 years, and there will be other criteria that you need to meet in your mortgage application.
How long do you have to live in the UK before you can get a mortgage?
Lending criteria will vary for each mortgage lender. For foreign nationals, the majority of mortgage lenders will want to see that the mortgage applicant has lived or worked in the UK for a minimum of 12 months, however, the 2 years+ will be more advantageous.
Get your mortgage in principle certificate in 5 minutes
Can I get a joint mortgage if one of us is not a UK citizen?
Yes, it is possible to get a joint mortgage with someone who is not a UK citizen, however, the pool of willing lenders will be smaller than if both applicants were UK citizens.
When applying for a joint mortgage, both applicants will need to meet the eligibility criteria of the chosen lender.
Can I get a mortgage in the UK with bad credit?
A common problem with foreign nationals getting a mortgage in the UK is that their credit history is usually based overseas, making it difficult for lenders to assess their financial history. Accessing your credit report from the UK can be difficult if you're not a resident, as most external credit reference agencies will require you to have a UK address.
The good news is that there are lenders who will consider your application, even with a poor credit history. However, you may need to provide a larger deposit than usual and additional evidence in order to be eligible.
If you have a bad credit history, the pool of willing lenders will be smaller so it's important to seek professional advice from a mortgage broker who can help you find the right lender.
It's important to note that each lender will have its own criteria when it comes to applications from foreign nationals with a poor credit score, so it's always best to speak to a mortgage broker beforehand who can advise you on the best course of action.
What is the maximum loan to value for a foreign national mortgage?
The maximum loan to value (LTV) will be lower for foreign national mortgages than for standard UK mortgages. This is because the risks are perceived to be higher for lenders when lending to foreign nationals.
The maximum LTV for a foreign national mortgage is usually around 60-70%, although some lenders may offer up to 75%. This means that you would need to provide a deposit of at least 25% (40% if your maximum LTV is 60%).
Speak to an expert
Getting a mortgage in the UK as a foreign national can be a complex and daunting process, so it's important to seek professional advice from an experienced mortgage broker who has experience in this area.
By working with a specialist broker, you'll be able to find a mortgage that meets your specific needs and requirements, while boosting your chances of mortgage approval. We can help you to find the right mortgage deal, even if you're not a UK resident.
To find out more about getting a mortgage as a foreign national, or to compare deals, enquire now and we'll put you in touch with an expert mortgage broker.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.