It can be difficult getting a mortgage if you’re a non-UK citizen, resident and/or if you receive your salary in a foreign currency.
The first thing to remember is that you can get a mortgage in the UK even if you’re not a UK citizen. It’s not about where you are born but rather about your right to reside in the country and earn money there as well as credit history. The latter point being crucial when getting a mortgage, as lenders will want to see that you have a good credit history in the UK before agreeing to give you a mortgage.
On top of that, Brexit went through this year, and things changed slightly. Either you are a foreigner, who is looking to buy a property in the UK, or simply curious, read this blog to discover how to get a mortgage as a foreign national.
A word about Brexit
As of January 1, 2021, the Brexit transition period terminated, and new rules implemented in the UK, including Scotland.
Following that date, lenders have been updating their practices. While rules can differ, the constant seems to be that any EU citizens, European Economic Area (EEA) and Swiss citizens, living in the UK who apply for new lending from 1 January must provide evidence of their confirmed settlement status or indefinite leave to remain at the time of application.
Therefore, it’s a prerequisite for borrowers to provide a document stating their settled or pre-settled status to apply for a mortgage unless another party on the mortgage has a permanent right to reside, EU settlement status or is an Irish citizen.
Requirements to get a mortgage if you’re a non-UK citizen
Since Brexit, the distinction between non-EU and EU citizens is irrelevant. Now, you are a non-UK citizen, either with indefinite leave to remain (“settled status”) or limited leave to remain (“pre-settled status”).
So, as soon as you arrive in the UK, you should build up your credit score. For that, you must open a UK bank account, set up some direct debits, register to vote and make sure you pay your bills on time.
In general, you must tick the following boxes:
– Lived in the UK for at least 3 years
– A UK bank account
– A permanent job in the UK
– A deposit (the size will vary but a 20%+ may be expected by some lenders)
Mortgage applicants from outside the UK who do not have the right to a permanent abode will be required to hold a visa. Lenders want to feel confident that borrowers can repay their loan. So, if you have minimal time left on your visa, this could affect your ability to work, earn and make your repayments.
Do you have questions?
A mortgage advisor is arguably the most efficient way to find the best mortgage, especially if you are a non-UK citizen. They know the lenders that offer lower interest rates on mortgages for foreign nationals, they will navigate the market for you and use their knowledge and relationships, to find the right mortgage for your circumstances. Contact GPD Mortgage Solutions today if you have any questions.
