Foreign national mortgages: Getting a mortgage in the UK

You can apply for a mortgage in the UK if you’re a foreigner, but it can be time-consuming to get it all sorted. Let our guide to foreign national mortgages help you through the key steps.

It also tends to be slightly more expensive in terms of interest rates than getting a mortgage if you live in the UK. You will also have to produce a sizeable deposit – usually around 25% of the property’s value.

Where you live can be a problem too, as most lenders will have a list of “acceptable” countries they are happy to lend to residents of. If your home country isn’t on this list then you may run into trouble.

Tougher identity checks will also be in place as lenders will want a clear idea that you are who you say you are. In this case, some lenders may want to meet you in person, which would mean a trip to Britain to secure the loan. However, some are known to dispatch a representative to your country of residence – particularly for high-net-worth clients.

If you’re an EU citizen you will be treated the same as a British citizen but, if not, there will be extra criteria you need to meet. Here’s what you need to know to make a successful mortgage application.

Mortgages for EU citizens

Lenders generally treat all citizens of countries in the European Economic Area (EEA), which includes the 27 countries in the European Union and Iceland, Norway and Liechtenstein, the same as British citizens for mortgages purposes.

Although Switzerland isn’t in the EU or EEA, the same usually applies to its citizens.

At the moment there’s no indication this will change as a result of Brexit but there could be developments in future.

As with anyone applying for a mortgage, the lender will want to see that you have a good credit history in the UK, which is one potential stumbling block if you’re from elsewhere.

“You should have a credit record of at least 12 months to have a chance of being accepted but the longer the better – ideally three years,” says David Hollingworth from mortgage broker London & Country Mortgages.

Any type of credit you have, including an overdraft facility, credit card, loan and mobile phone contract, will be recorded on your credit reports so it’s a good idea to take out and use some of these and make payments on time to show yourself to lenders in the best light.

Registering to vote, if you’re eligible, and having a UK bank account from which you have direct debits set up will also help.

Mortgages for non-EU citizens

If you’re not a citizen of an EEA country or Switzerland there will be more hoops you have to jump through.

If your passport shows you have indefinite leave to remain in the UK, most lenders will consider you. If not, things get more complex and whether you’ll be considered depends on what type of visa you have.

Halifax, for example, requires applicants to have a work permit or visa with at least two years and six months left or to have lived and worked in the UK for more than three years (excluding periods as a refugee or student). If neither of these applies and the work permit has less than two years and six months to go, the lender insists that an employer has to confirm the applicant has asked for, or wants, the permit to be renewed. Applicants also have to submit any documents about conditions attached to their visa. When applicants can’t meet the conditions, they’re likely to be rejected or offered a lower amount such as no more than 75% of the property’s value (known as loan-to-value or LTV).

Nationwide considers applicants that have certain types of visa: a Tier 1 or Tier 2 work visa (for highly qualified and skilled workers) or a UK residence card (showing permanent residency status), family or spouse visa, or UK ancestry visa. This has also applied to joint applications where only one of the applicants is from outside the EEA. Applicants are also limited to 75% LTV unless it’s a joint application where one of the applicants is from outside the EEA and that person’s income hasn’t been included on the application. In most cases, though, applicants should include both incomes to maximise the amount that can be borrowed.

Santander specifies the property must be for your own use and for you to live in immediately. If borrowing more than 75% LTV applicants must have indefinite rights to live and work in the UK. They must have been living in the UK and eligible to work for at least 12 months.

Mortgages for self-employed foreign nationals

The criteria for proving your income so the lender can make sure the mortgage is affordable for you are the same whether you’re a foreign national or not, including if you’re self-employed.

“As with UK nationals, the lender will want to see at least two years of accounts, so you will find it harder to get a mortgage if you have become self-employed more recently,” Hollingworth says.

Can you get a mortgage with leave to remain?

The simple answer is that if you are an EEA or Swiss citizen its easier than not being one. Being an EEA or Swiss citizen, or you have indefinite leave to remain in the UK, getting a mortgage should be straightforward with most lenders willing to consider you.

If you’re not an EEA citizen and don’t have indefinite leave to remain it’s more complicated. A mortgage broker can help you navigate the different criteria set by different lenders to increase your chances of making a successful mortgage application.