Skilled Worker Visa Mortgage

Can you get a mortgage on a skilled worker visa? How does it work?

It’s certainly possible. There are some restrictions depending on your circumstances such as the amount of deposit you have, how long you’ve been in the UK and, to a certain extent, your credit score.

A lot of clients who come to us have spoken to their bank and been told that they need a 25% deposit. As you can imagine, that level of deposit is very challenging for a lot of people.

Instead, they want to find a lender that can potentially take a 10% or even 5% deposit – and that’s where we come in. There are a select few lenders that can do that – but not many. It really does help to have a broker find you a lender to do that.

Is a skilled worker visa mortgage difficult to obtain?

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 skilled worker visa mortgage. 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 are the eligibility requirements for getting a mortgage on a skilled worker visa?

The more deposit you have, the better your chances. A lot of people will look at their credit score and it says ‘high’ on Experian or similar. They assume that means they are eligible to get a mortgage, but actually a lot more goes into that.

Lenders will also look at how many dependents you’ve got, for example, and your loan to income ratio. If you’re trying to get the maximum borrowing amount, it can be a little harder to pass credit scoring with some lenders.

If you’re looking for a lower deposit, at 5% or 10%, you will need to hit a higher score, as well. So there are extra things that go on in the background.

You will need at least 5% deposit, and most lenders will want you to have at least a year in the UK – with some exceptions. Interest rates will be a little bit higher if you have had less time here. If you’ve been in the UK for a year and you’ve got at least a 10% deposit, you’ll have at least five or six options with lenders.

If you’re looking in Scotland, though, it can be a little bit more restrictive. Some of the lenders don’t lend in Scotland. Purchasing in Scotland is probably a little easier if you’ve got a 10% deposit. But with 5%, one or two potentially can help you.

The other issue some clients have is their credit score. It’s just because you may not have had a chance to build up your credit in the UK, so the lender can’t gauge how good you are with credit.

A couple of lenders will ‘credit search’ you instead. They don’t actually care about your credit score – they’re just looking for any missed payments, county court judgements (CCJs), defaults, etc. If you haven’t had any of these you will qualify, provided you can afford the mortgage.

Are there any age restrictions for getting a mortgage on a skilled worker visa?

No, not really. As long as you’re over the age of 18, there are lenders available. Some restrict it to age 21. There are also restrictions from lenders for how long you can have the term. A lot of them will go up to age 70 as standard, but some may allow you to go up to age 75, still using your employed income.

If you are relatively young, you can usually have a term up to 35 or even 40 years with some lenders, if you’re not going above age 70 to 75.

Buying a house in the UK with a skilled worker visa
Many skilled worker visa holders 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 are a few lenders with flexible criteria to help skilled worker visa holders as much as possible.

Buying a house in the UK with a skilled worker visa

Many skilled worker visa holders 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 are a few lenders with flexible criteria to help skilled worker visa holders as much as possible.

How long do I need remaining on my skilled worker visa to get a mortgage?

It is possible to obtain a mortgage with less than 3 months remaining on your skilled worker visa. In this case the lender may ask to see you have applied for an extension, or you are applying for settled status. There are some lenders that require between 1-2 years remaining on your visa, 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 skilled worker visa mortgage?

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. I was able to secure a mortgage for one client who had less than 3 months in the UK, so it is possible to get a mortgage with with less than a year.

You may have found some lenders have asked you for a three year history of living in the UK. There are many that ask for less than this, offering competitive rates, but the longer you have lived in the UK the more options you will have.

How much work history from a UK employer do I need to apply for a mortgage on a skilled worker visa?

First of all, the residency side is key. If you’ve had a year in the UK – not work history, just residency – that will initially open some doors. Some lenders want you to have had three or six months in an employed role.

But if you’ve just started a new new role or it’s your first job and you’ve just got one pay slip, some lenders can consider that as well.

All lenders are different, which makes it difficult to find the right one. If you’re in a role with a zero hours contract or a care worker role, you would need at least 12 months in that role – or a combination.

For example if you have done six months in a zero hour contract and then spent another six months in another role, that would total 12 months and the lender would be happy.

If the care role is permanent employment, you could potentially use one pay slip. But we find that people working in the care industry have a lot of overtime and variable hours. If you’ve got at least three months’ pay slips, lenders take an average of those to work out your annual income.

Your role and whether it’s a permanent contract, then, can change how much work history you need.

How Much deposit do I need for a skilled worker visa Mortgage?

The biggest challenge we come across for foreign nationals is the deposit. Lots of lenders will restrict you to needing a 25% deposit. However it is possible to obtain a mortgage on a skilled worker visa with just 5% deposit. To be eligible you will need to fit one of the following criteria:

5% Deposit Criteria

Qualifying with a 5% deposit can be difficult if you are currently on a skilled worker visa. However it is possible and there is a total of three lenders that offer this currently.

Two of the lenders have income requirements that you must qualify for and they require you to have a good credit score as well.

However there is another lender who can offer this to you with no income requirements and you do not have to meet a credit score either. However you will need to have lived in the UK for at least 1 year.

We have helped many clients with Visas and from our experience it is very difficult to qualify for a 5% deposit if you have not been in the UK for more than a year.

10% Deposit Criteria

It is much easier to qualify for a skilled worker visa mortgage with a 10% deposit. You could even qualify for a skilled visa mortgage with less than 1 years UK residency.

You can qualify for better rates if you have a higher gross income or if you have a good credit score. There is one lender that has no income requirements and will not credit score, but their interest rates are higher as a result and currently only lend in England and Wales.
The longer you live in the UK the more lenders will become available to you. At 2 years you will have access to quite a few lenders, but it is certainly possible with less than 2 years and we have helped many clients in this situation.

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.

Are there any restrictions on the type of job or industry that qualifies for the skilled worker visa?

No. All they’re looking for is that you’ve got a valid work visa, which they’ll evidence via a share code. There are no restrictions on the type of job or industry.

If you are in a more professional role, such as a doctor, accountant or a position in the NHS, for example, some lenders give you a little bit more flexibility. You may find you have a few more options in that type of industry.

What documents are required to apply for a mortgage on a skilled worker visa?

It’s very standard and the same as for a UK citizen. The only difference is the need for that share code to verify your visa status. The other documents include ID documentation and depending on the lender, up to three months’ bank statements and pay slips.

If you are on a zero hours contract they may require a P60, or they may just look at 12 months’ pay slips. It depends on the lender.

If you have bonuses, we can potentially look at including those. Most lenders will want bonus pay slips to evidence the details. If it’s a monthly bonus, most will look at the last three months. If it’s an annual bonus, most lenders will want to see evidence of the last two – so to use that bonus, you probably need to have worked with that company for two years.

Do I need a high credit score to get a skilled worker visa mortgage?

There is only 1 lender that does not credit score you as part of their application. All other skilled worker visa mortgage lenders check your credit score. It is brilliant news that we now have a lender that won’t credit score you as part of the mortgage application, as from experience, we know this to be one of the biggest barriers for skilled visa holders. However the rate for this lender is higher than others, so if you want a cheaper mortgage you want to make sure your credit score is good.

If you are borrowing a high percentage of the property, most lenders will want to see a strong credit score and to see a history of responsible lending. Some skilled visa holders 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.

How to improve your score.

What is my current credit score?

What if I have bad credit? Can I still apply for a mortgage on a skilled worker visa?

If it’s just the odd missed payment you should be okay, as long as it hasn’t really affected the score too much. If it’s a default or a CCJ, that would restrict you quite a bit.

You certainly wouldn’t be able to qualify for a mortgage with a 5% deposit. You may be able to qualify for 10% after a couple of years.

A single late payment shouldn’t affect the score too much and you should be able to qualify with a lender. Lenders that credit search know you can’t build up your score very quickly. They’re trying to help you with this type of application, but they still don’t want to see bad credit.

Are there any specific policies or regulations related to skilled worker visas to be aware of when applying for a mortgage?

Some lenders want to know how long you’ve got left on your visa. Some are more relaxed if you’ve just got three months left, because usually you will be able to get that extended. But others would want to see at least a year left on that visa.

Your specific scenario may change things, but as long as the visa is valid and we can evidence that by the share code, you’re okay.

The only thing to add is that some lenders will take a graduate visa as well, or a British National Overseas visa. It doesn’t necessarily need to be a skilled worker visa to qualify.