Ancestry Visa Mortgage
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Meet the Author
Elliott Culley
Job Title: Director & Mortgage Adviser
10 years experience in financial services
Ancestry Visa Mortgage
At Switch, we understand that moving to the UK on an ancestry visa brings many opportunities, including the chance to own your own home. Having this type of visa does not prevent you from getting a mortgage. In this article, we explain how ancestry visa holders can access the property market, including information on required deposits, credit history, and how lenders view your status.
Can you get a mortgage in the UK if you’re on an ancestry visa?
Yes, you certainly can get a mortgage on an ancestry visa in the UK. While some banks might tell you that you need a 25% deposit or three years’ residency, there are lenders who can consider applications with a deposit as low as 5% to 10%. This makes it much easier for ancestry visa holders to obtain a mortgage.
Do lenders treat ancestry visa holders differently from those on a skilled worker visa?
Yes, they do. Not all lenders that help skilled worker visa holders will also assist those on an ancestry visa. It is a more niche area, but there are still lenders available. You can still access competitive rates that are similar to standard high street rates, so being on a visa doesn’t necessarily mean you will have to pay a higher interest rate.
What deposit do ancestry visa holders typically need compared to UK nationals?
It is possible to get a mortgage with a deposit as low as 5%. However, we usually recommend aiming for at least 10%. At this level, you will have more lenders to choose from and you will likely have access to better interest rates than you would with a 5% deposit.
Can I use savings from my home country as a mortgage deposit if I’m on an ancestry visa?
Yes, you can use savings from your home country, or even a gift from a family member living abroad. Many lenders are happy to accept deposits from overseas, though some may have restrictions depending on the specific country. Some lenders might also require you to have the money moved into a UK bank account before you make your application.
Do I need to have UK credit history to get a mortgage, or can lenders work with overseas credit records?
Most lenders will require you to be living in the UK and have a UK credit history. While some lenders want you to have lived here for one or two years, others only require a few months of history. If a lender uses credit scoring, you might need more time to build up your score. However, there are lenders who just check that you don’t have bad credit, in which case two to three months of UK history could be enough.
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How does the five-year term of an ancestry visa affect the mortgage term you can get?
The five-year visa term doesn’t usually affect the overall term of the mortgage. Lenders are more concerned with how much time is left on your current visa. If you have 12 months or more remaining, most lenders are satisfied. If you have less than six months left, they may ask for more details about your plans, such as whether you are applying for citizenship or a visa extension.
Is it easier to get a mortgage once I’ve switched from my ancestry visa to Indefinite Leave to Remain (ILR)?
Yes, having Indefinite Leave to Remain (ILR) makes the process easier. Some lenders only work with clients who have ILR status and do not lend to anyone on a visa at all. If you are close to obtaining ILR, it might be worth waiting so that you have access to a wider range of lenders.
Can I get a Buy to Let mortgage while on an ancestry visa, or is it limited to residential?
You can get a Buy to Let mortgage while on an ancestry visa. Because it is for an investment property rather than a residential home, the deposit requirements are higher. You will typically need at least a 20% deposit, though having 25% will provide you with more options.
What documents do lenders need from ancestry visa holders that they wouldn’t need from a UK citizen?
The main additional document required is proof of your visa status. You will need to provide a share code from the government website. This allows the lender to verify the type of visa you hold, how long is left on it, and how long you have been in the UK.
Can a couple apply jointly if one partner is on an ancestry visa and the other is a UK citizen?
Yes, applying jointly with a UK citizen can actually be very beneficial. Some lenders will remove the restrictions they usually place on solo visa applicants. For example, a lender that requires a 25% deposit for a single applicant on a visa might allow a 5% deposit if they are applying with a British citizen.
How can a mortgage broker help? Is there anything else you would like to add?
A mortgage broker can save you a significant amount of time. Instead of booking multiple appointments with banks only to be told you don’t qualify because of your visa status or length of residency, a broker knows the criteria of various lenders immediately. We can identify the right lender for your specific circumstances and handle the application for you to ensure you get the most suitable product available.
Summary and Key Points
Securing a mortgage on an ancestry visa is entirely possible with the right guidance. Key points to remember include:
- Deposits can be as low as 5%, though 10% is recommended for better rates.
- Lenders primarily focus on the time remaining on your visa (ideally 12+ months).
- Overseas savings and gifts are often accepted as deposits.
- Applying with a UK citizen partner can lower deposit requirements.
- A UK credit history of just a few months can be sufficient for certain lenders.
Your property may be repossessed if you do not keep up to date with your mortgage repayments.
The Financial Conduct Authority does not regulate most Buy to Let mortgages.
There may be a broker fee charged for our services.
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