Mortgage Without Indefinite Leave to Remain (ILR)

Can I get a mortgage without indefinite leave to remain?

Yes, it’s certainly possible. The options available would depend on your type of visa. It’s something we deal with quite a lot at Switch.

Whether you’re on sort of a skilled worker visa, a spousal visa or have pre-settled status, there are a range of options.

What types of visas can get a UK mortgage? Are there specific visa types that are more favourable to lenders?

Skilled worker visas are the main one, and spousal visas. You can even branch out as far as a student visa and the graduate visa scheme.

You’ve also got a health skilled visa, which is very similar to the skilled worker visa. The only one I’m aware of that you cannot apply for a mortgage with is a refugee visa. Lenders don’t accept that at the moment.

Quite a few lenders potentially accept skilled worker visas now. If you are on a spousal visa, and a UK national or someone with permanent right to reside in the UK is also on that application, that opens up quite a few options.

If you are looking at that as a single application, there are some potential lenders, but the field does get smaller.

Do I need to have lived in the UK for a minimum period to apply for a mortgage?

With some lenders, you could have had less than a year in the UK, especially if you’re on the skilled worker visa. But the more time in the UK you have, the better opportunities there are. Once you pass a year, it opens up more other lenders, and the same again when you reach two years.

It’s certainly worth having a conversation early on if you’re ready to look at properties. But more are lenders available the longer you’ve been in the UK, provided you hit the rest of their criteria.

How much employment history do I need to get a mortgage without indefinite leave to remain?

With some lenders, potentially as little as a month if it’s a permanent contract. Most would want you at least to have been there for three months, and some need a 12-month employment history.

Some lenders will accept employment history gained in a different country. Others may want you to be out of the probationary period – and depending on your role, that could be three or six months. If you were doing a similar role beforehand, lenders can be a bit more flexible on the probationary period.

It’s easiest if you’re on an employed permanent contract. If you are on a zero hours contract, most lenders want to see 12 months’ history in that role to consider that income.

Are there any restrictions on the kind of property I can buy without indefinite leave to remain?

There are no real restrictions, although if you’re looking at a flat or a new build property, sometimes lenders want a higher amount of deposit.

On new build flats, most lenders will want at least a 10% deposit. With new build houses it’s usually around 5%. So it’s more about the amount of deposit regarding certain properties, and not because you’re on a visa.

How much deposit for a mortgage do I need without indefinite leave to remain (ILR)?

The more deposit you have, the better the scenario will be for you. It’s one of the key factors for lenders – and perhaps the hard bit for clients without ILR.

It’s harder to qualify if you’ve only got a 5% deposit. If you’re on a skilled worker visa, only four or five lenders will be available to you. If you’ve got 10%, that opens the doors to more. If you can get to 15%, that’s even better. But it’s certainly possible with 5%.

If you’re on a spousal visa on a single application, it’s very similar. But with a UK national on a joint application, you will have access to quite a lot of lenders at 5% deposit. Do bear in mind what we said earlier in regards to properties. You may need to put down 10% if it’s a new build flat.