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Mortgage Advisor & Director
Tier 1 Visa Mortgages
If you're on a Tier 1 Visa, you might be wondering about your chances of getting a mortgage in the UK. Fortunately, applying for a mortgage on a Tier 1 Visa is possible, but there are certain requirements you'll need to meet before you can be approved.
It's important to work with an experienced mortgage broker who understands the policies of individual lenders regarding Tier 1 visa holders before applying for a mortgage. Different mortgage lenders have different standard lending criteria, which is why it can be easier to work with someone who understands the nuances of visa mortgages and can help you find a lender that specialises in such.
At Teito, we're a whole of market mortgage broker, which means that we have access to a wide range of lenders and mortgage products, including those specifically designed for Tier 1 visa holders.
If you're on a Tier 1 Visa and looking to get approved for a mortgage in the UK, then please contact us today so we can discuss your options in more detail. We'll be happy to help you find the right mortgage product for your circumstances and guide you through the entire process.
What is a Tier 1 Visa?
A Tier 1 Visa is an type of visa for highly skilled workers in the UK. It is a points-based system that allows migrants to work and live in the UK for a period of time, depending on the type of visa granted.
There are several types of Tier 1 Visas, such as Tier 1 (Investor) Visa, Tier 1 (Entrepreneur) Visa (now closed to new applications but open to extensions until April 2023) and Tier 1 (Exceptional Talent) Visa. Each has its own set of restrictions and requirements.
Can I get a mortgage on a Tier 1 Visa?
In order to be eligible for a mortgage while on a Tier 1 Visa, you will need to show evidence of your right to reside in the UK. This can include copies of your passport or visa paperwork, proof that you have sufficient funds available to cover your mortgage payments, as well as evidence of your employment and income.
For foreign nationals, applying for a mortgage in the UK comes with a few common challenges:
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Finding a lender that is willing to lend to someone on a Tier 1 visa can be difficult since many mortgage lenders will have tighter criteria for foreign national applicants. Additionally, you may need to provide additional documentation than non-foreign nationals when applying for a mortgage in the UK.
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Since your credit history is more likely to be limited or non-existent in the UK, lenders may also be concerned about your credit scoring as this is a key indicator of your reliability as a borrower.
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Foreign nationals may also struggle to demonstrate they have the funds to contribute as a deposit, as most lenders may require a larger deposit for foreign national mortgages, and it can be difficult to prove the funds are available if they are in an overseas bank account and/or in a foreign currency.
Fortunately, at Teito we understand these challenges and are able to access the whole of market mortgages for Tier 1 Visa holders that meet their needs. We'll be happy to help you find the right mortgage product for your circumstances, guide you through the entire process and make sure that all your documents are in order before submitting an application.
Can I get a UK mortgage on a work visa?
There are several types of work visas available in the UK, and you may find there are fewer mortgage providers that are willing to approve a mortgage for an applicant on a work visa.
Lenders prefer that applicants have the right to remain in the UK indefinitely, and are looking for reassurance that you can meet your monthly payments over the long term. As such, those on work visas may find it difficult to get approved for a mortgage, as lenders are taking more of a risk.
It is important to understand that due to the varying types and lengths of visa available, it can be difficult for lenders to assess an individual’s case when deciding whether or not to approve them for a mortgage.
Therefore, it is likely that some providers will decline people on work visas altogether. However, there are still lenders out there who recognise this group of borrowers and may be willing to consider applications from those with valid work visas.
Eligibility for foreign national mortgages
There is no specific set of criteria for getting a UK mortgage as a foreign national. However, generally speaking, mortgage lenders will be looking for:
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A long-term visa arrangement, ie, a work visa rather than a student visa.
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A decent amount of time left on your visa, which can indicate your intentions to remain in the UK.
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Evidence that you've been working in the UK for a reasonable amount of time, between 1-5 years.
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Proof of income, ideally from a UK source.
You may find that lenders each have their own specific set of criteria to meet, for example, a minimum income or maximum Loan to Value (LTV) ratio. Therefore, it is important to make sure you check the eligibility criteria of a lender before applying for a mortgage.
At Teito we understand that foreign nationals have individual circumstances and needs when seeking a mortgage in the UK, so our expert advisors are here to help you find the right product and guide you through the application process.
Can I get a UK mortgage on a spousal visa?
Yes, you may be able to get a UK mortgage while on a spousal visa. Generally speaking, as a spousal visa holder married to someone with a permanent right to reside in the UK, you may be able to apply for a UK mortgage on a similar basis to Tier 1 or Tier 2 visa holders.
It's important to understand that mortgage eligibility and lending criteria vary from lender to lender and this will depend on the type of visa you hold, as each has different conditions attached.
As a foreign national, you may be asked to provide additional documentation in order to prove your eligibility for a mortgage. This could include proof of residency and income, as well as any paperwork related to your visa status.
At Teito we understand the challenges faced by those applying for mortgages on spousal Visas and are able to access tailored mortgage products from specialist lenders. We’ll guide you through the entire process and make sure that all your documents are in order before submitting an application.
Speak to an expert
At Teito we work with mortgage providers from across the UK, including those who have experience in helping foreign nationals get a mortgage. Our advisors are here to help you find the right product and guide you through the application process.
So if you’re looking for advice on mortgages for foreign nationals, speak to an expert today and we’ll be happy to help. Get in touch with us now to see what options are available.
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.
