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Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance
Spouse Visa Mortgage
Getting a mortgage on a spouse visa can be difficult, but it is certainly possible to obtain a mortgage if you are in this scenario. Mortgage lenders in the UK often apply extra rules and restrictions on people buying a house with a spouse visa. However there are many lenders available and with some you can even obtain a mortgage with a 5 or 10% deposit.
What is a spouse visa?
A spouse visa also known as a family visa allows somebody married or in a civil partnership with a person who has indefinite leave to remain in the UK to live and work in the UK for a set period of time. They typically last for 2 years and 9 months, but can be extended by another 2 years and 6 months.
After this time you can apply for indefinite leave to remain in the UK. A spouse visa can make it hard to get a mortgage if you don’t know which mortgage lenders to approach, which is where we can assist.
Can I get mortgage if I’m on spouse visa?
Yes it is certainly possible to get a mortgage on a spouse visa. You may have found that most mortgage lenders ask for large deposits, long period of validity left on your visa or want you to have lived in the UK for a certain amount of time. As a result it can seem like getting a mortgage on a spouse visa can be really difficult.
In reality, there are lenders offering mortgages to you even if you have only have a 5% deposit. You will find many mortgage lenders available provided you have lived in the UK for the last 12 months, and there are lenders that will consider you even with less than 6 months left on your Visa.
Is it difficult to obtain a mortgage with a spouse visa?
When you first start looking it can seem like obtaining a mortgage is going to be really hard. In reality it can be easier than you might think to get a mortgage on a spouse visa. The biggest obstacles you may have come up against is the size of the deposit needed and how long you have left on your visa.
There are visa friendly lenders that will be able to help you get past these difficulties. You need to make sure you apply with the right lenders, this is where an experienced mortgage broker can help you.
What size deposit is needed for a mortgage on a spouse visa?
It is possible to obtain a mortgage on a spouse visa with just 5% deposit. To be eligible you will need to apply with somebody who does have indefinite leave to remain and you need to have lived in the UK for a minimum of 12 months and have more than 6 months remaining on your visa.
However if you are applying for a mortgage on your own or with somebody else who does not hold indefinite leave to remain the majority of mortgage lenders will restrict you to needing a 25% deposit.
There are some lenders that are willing to lend up to a 10% deposit in this scenario, however the criteria becomes much harder to achieve. You will need to have lived in the UK for at least 12 months and have 2 years left on your visa or lived in the UK for the last 2 years. You will also need to provide more documentation to the lender as you will be higher risk.
Real Case Example
A client came to us after struggling to secure a mortgage with Nationwide as they wanted at least a 25% deposit from them, when the clients only had 10%. One of the clients was on a spousal visa and as a result many lenders would want at least 25% deposit. We secured the clients a mortgage with a high street lender with just a 10% deposit. The clients were able to purchase their dream home, and the whole transaction was completed smoothly and efficently.
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What if neither of us have indefinite leave to remain?
If neither of you have indefinite leave to remain you can still be considered for a deposit as low as 5% if you meet just one of the following conditions:
You have a joint income of at least £100,000 per year, OR
One of you has lived in the UK for the last 5 years, OR
You have both lived in the UK for the last 3 years AND have 2 years remaining on your visa.
If you have a 10% deposit you can also qualify under the following conditions:
You have lived in the UK for at least 2 years, OR
You have lived in the UK for at least a year and have more than 2 years left on your VISA.
Why do most lenders want large deposits for foreign nationals?
A mortgage where an applicant is on a VISA and does not have indefinite right to remain carries more risk for a mortgage lender. The lender’s priority is ensuring that they can sell the property if you fail to keep up with the mortgage payment.
If you do not yet have indefinite leave to remain, there is a risk you may need to leave the UK in the future. If that’s the case it may become difficult for the partner on the mortgage to maintain payments on the mortgage or the lender to communicate with you.
Therefore lenders ask for higher deposit levels to compensate for and ensure you will not fall into negative equity if you had to sell.
How long do I need remaining on my spousal visa to get a mortgage?
It is possible to obtain a mortgage with less than 6 months remaining on your VISA, however most lenders will want at least 6 months remaining. Some lenders ask for at least 2 years so you may need to avoid these lenders. The longer you have left the more options you will have.
How long do I need to have lived in the UK to get a spouse visa mortgage?
For some lenders you need to have been in work for a minimum 1 year, however you will find the majority of lenders will want a three year history of living and working in the UK. The longer you have lived in the UK the more options you will have.
How much can we borrow for a mortgage with a spouse visa?
Most mortgage lenders will use 4.49x your annual gross salary as a starting point. The total borrowing figure will reduce if you have credit commitments like a car loan or credit card. The figure could also reduce depending on how many children you have or adult dependents that may live with you.
Are interest rates higher for spousal visa mortgages?
You will be offered the same interest rate as anybody else applying for the same product with the same lender.
However you might be restricted on who you can apply to depending on your personal circumstances, so you might find the rate you can obtain might be higher than a UK national as you might be restricted to who you can apply too. Generally speaking it is possible to obtain the best interest rates on the market.
Does one of us need to be a UK citizen to get a mortgage?
If neither of you have indefinite leave to remain you can still get a mortgage, even with a small deposit like 5% or 10%. Please refer to the earlier criteria.
However if you can apply with someone who has indefinite leave to remain in the UK it increases the availability of lenders and makes a mortgage with a lower deposit much easier to obtain.
Indefinite leave to remain includes:
Is a British citizen, OR
Has already been granted indefinite leave to remain, OR
Has EU settled status, OR
How long do you need to live in the UK to get a mortgage?
The mortgage lenders will require you to have lived in the UK to obtain a mortgage with them.
You’ll have the best chance of qualifying with the most spouse visa-friendly mortgage lenders once you have been in the UK for 12 months, but if you are applying with someone with indefinite leave to remain, this can be lower.
What documents are needed to get a mortgage on a spouse visa?
The below is a list of the most common documents a lender may ask for, although further documentation could be required:
Proof of your income
Bank statements for the last 3 months
Proof of your deposit
Credit report
A copy of your visa, OR
A copy of your UK Immigration share code from this government service
Can I get a Mortgage on a Spouse Visa as a first time buyer?
Lenders will consider you if you are a first time buyer. If you have owned property abroad this can affect your stamp duty liability and if you still own the property, the running cost must also be taken into account.
Can I get a buy to let mortgage on a spouse visa?
Yes it is certainly possible to obtain a buy to let mortgage. Some mortgage lenders do have a minimum income of £25,000 per year that you will need to earn, but some require no minimum income at all.
If this is your first time being a landlord or you are first time buyer, then there are some lenders that will not consider you, and you will want to make sure you apply to the correct lender by using a mortgage broker.
Can I get a spouse visa mortgage with bad credit?
Yes, it is possible to get a mortgage with a spouse visa even with bad credit. It would completely depend on the severity of the bad credit.
There are some specialist lenders that will consider you, however you will need it likely you will need to provide a larger deposit and resided in the country for longer. If you are not sure on your credit situation and whether it could affect your mortgage chances, then we would advise to get in contact with us.
Why Choose Switch to Help You?
Whether purchasing or remortgaging, you’ll want access to the best products on the market. We have a proven track record of helping clients with spouse visas and will be able to assist you with your mortgage needs.
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