Mortgage Without Indefinite Leave To Remain
- Independent mortgage specialists
- Secure the best mortgage for your circumstances
- Professional, qualified & reliable mortgage advice
As Featured In...
Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance
How to get a mortgage in the UK without indefinite leave to remain
Buying a property without indefinite leave to remain can seem like a difficult task. You may have spoken with mortgage lenders already and been told they cannot help you or you need a large deposit. However as experts in this area, I can positively tell you it is possible to get a mortgage as a foreign national and we can help it happen.
Can I get a mortgage without indefinite leave to remain?
Getting a mortgage without indefinite leave to remain 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 applicants without indefinite leave to remain and some lenders don’t lend at all. However there are many lenders available and with some you can even obtain a mortgage with a 5 or 10% deposit.
Which Visa is needed to get a UK Mortgage without indefinite leave to remain?
If you are a foreign national without indefinite leave to remain there are three main visa’s that mortgage lenders will accept.
- Tier 2/Skilled worker Visa or Dependent on a Skilled Worker Visa
- Spouse/Family Visa
- Pre-Settled Status
We have helped a huge number of applicants without indefinite leave to remain holding one of these three Visa’s and are experts in this type of enquiry. If you do hold one of these Visa’s there is a good chance you will be able to qualify for a mortgage.
Can you buy a house without indefinite leave to remain?
Many foreign nationals without indefinite leave to remain think it is very difficult to buy a house in the UK. Although it can be more challenging, it is certainly easier than some people believe it to be. You need to apply with the right lender for your circumstances and there may only be a few lenders that can support your circumstances, so you need to ensure you pick the right lender first time.
Can I get a mortgage with a BRP?
IF you have a British residency card (BRP) then you should be able to qualify for a mortgage provided the residency permit was granted for either a:
- Tier 2/Skilled worker Visa or Dependent on a Skilled Worker Visa
- Spouse/Family Visa
- Pre-Settled Status
There are a handful of lenders that can help you if you have a BRP card, and it will depend on your level of deposit, credit score and Visa status as to which ones can help you.
Mortgage deposit without indefinite leave to remain
The biggest challenge we come across for foreign nationals is the deposit. Lots of lenders will restrict you to needing a 25% deposit especially if you are on a Visa. However it is possible to obtain a mortgage as a foreign national with just 5% deposit.
If you are on a Visa, then you will have more options available to you at 10% and most lenders will want you to have at least 1 year living in the UK.
Real Case Example
A client came to us for help after they had been turned down for a mortgage through HSBC. Our client was on a working skilled worker visa and had been in the UK for 18 months. They had a 10% deposit, but had been rejected by HSBC as HSBC required a larger deposit of 25%. We were able to secure the client a mortgage with a high street bank the same week, using a 10% deposit, and the client was able to proceed with the purchase of their first home in the UK.
Why do most lenders want large deposits if I do not have indefinite leave to remain?
A mortgage where an applicant is on a VISA and without indefinite leave 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.
Speak to an Expert!
Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.
With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
How to get a mortgage without indefinite leave to remain?
You need to ensure you apply to the right mortgage lender and this can be a difficult thing to do as the lenders all have different criteria and some lenders can help foreign nationals more than others. You don’t want to approach the wrong lender waste time and potentially lose the property you wanted to buy.
That is why we would always recommend getting in contact with a mortgage expert. This way you are in the best possible position to move forward and purchase a property without any issues.
Which mortgage lenders offer mortgages to applicants without indefinite leave to remain?
If you do not have indefinite leave to remain and you have less than 25% deposit, then the number of lenders that can provide you with a mortgage reduces. There is only a handful of lenders that provide mortgages for Visa holders with less than 25%. We know who those lenders are and have built good relationships with them.
There are even some lenders who other mortgage brokers might not know about that can assist if the circumstances are suitable. We are renown for our expertise in this area and have even had mortgage lenders approach us to help improve their criteria for foreign nationals.
Do I need a high credit score to get a mortgage without indefinite leave to remain?
If you only have a small deposit, then most lenders will want to see a high credit score and to see a history of responsible lending. Some foreign nationals do not pass the credit score with the lenders, because their scores are too low. This can be because you have only just moved to the UK and therefore have little UK credit history. Or you have been in the UK but never taken out credit and therefore your score is low.
Below are some tips on how to grow your credit score as well as a link to Check My File, which I recommend as it gives you access to the 3 credit agencies mortgage lenders will use.
Can I get a mortgage without being a UK citizen?
Yes, you do not have to be a UK citizen to get a mortgage and purchase a property. Provided you have a Visa or have pre-settled status you can qualify for a mortgage.
Can I get a mortgage with less than 3 years in UK?
Yes there are quite a few lenders that can consider your application if you have not lived in the UK for three years as a Visa holder even with a 5%-10% deposit.
To access the best rates, you will need to have a strong credit score and some lenders have minimum income requirements too. There are lenders that can consider you with no minimum income and do not credit score, but the rates will be higher as a result.
Real Case Scenario
A client came to us having been in the UK for only 4 months. We were able to secure the client an accepted decision in principle within 2 days. The client eventually found a property and the mortgage was secured a couple of weeks later.
*The above scenario is possible if you have a 25% deposit or earn over £60,000.00 with at least a 10% deposit.
How long do I need to have lived in the UK to get a mortgage without indefinite leave to remain?
For most lenders you need to have lived in the UK for a minimum of a year. This is so you can build up enough credit history in the UK.
It is possible to apply for a mortgage with less than 1 years UK residency. It is harder to qualify and you may need to be earning a higher income to qualify or put down a larger deposit. There are more options available once you have at least 1 years residency, and you will also need a good credit score.
How long do I need remaining on my visa to get a mortgage?
It is possible to obtain a mortgage with less than 3 months remaining on your Visa. Some lenders ask for at least 2 years so you may need to avoid these lenders. If you have reapplied for an extension some lenders may ask to see this. The longer you have left the more options you will have.
Are interest rates higher for without indefinite leave to remain?
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.
How much can I borrow as a non UK citizen?
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.
Can you get a Buy to Let mortgage as a non-UK citizen?
Yes it is possible to purchase a buy to let mortgage as a foreign national. You will need at least 25% deposit to qualify for a buy to let mortgage.
Shared ownership without indefinite leave to remain
You can qualify for the shared ownership scheme without indefinite leave to remain . You will need at least 10% deposit to qualify and in most cases you must have lived in the UK for 1 year.
Shared ownership is when you purchase a share of the property’s total value. You will need to buy at least a 25% share of the total value of the property. You would then need to provide 10% of that share.
You will pay monthly mortgage payments for your 25% and the other 75% will be owned by the local housing association who will charge you rent for the 75% you do not own.
Shared Ownership Example
A property is worth £200,000. You are purchasing 25% of the property which is £50,000. You would need to provide a deposit of £5,000.
Can I get a mortgage without indefinite leave to remain with bad credit?
Yes, it is possible to get a mortgage without indefinite leave to remain 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 without indefinite leave to remain and will be able to assist you with your mortgage needs.
Why Switch Mortgage Finance
- Raising The standards of financial advice
- Making financial advice accessible to all
- Trusted & stress-free financial advice
- Friendly, personable advisors