Mortgages for Foreign Nationals in the UK

Mortgages Direct uk are a specialist mortgage broker that specialize in helping foreign nationals secure mortgages in the UK.  

read more about why use a mortgage broker

We understand the unique challenges you may face and are here to guide you through the process.

Who are foreign nationals?

A foreign national would be considered to be anyone who does not hold permanent rights of residency in the UK

So anyone with a Visa or anyone without a proven right to stay in the UK

Can foreign nationals get a mortgage

Yes, this is possible, however there will be several requirements:

• Income - You will need to be employed or self employed at the time of application

• Address history - You will need to have lived in the UK for a sufficient time to build up a credit record

• Credit history - You will need a bank account and you will need to have a credit footprint at your current address in the UK

• Deposit - You must have a deposit and be able to prove where the deposit originated

• Supporting documents - You will need to have proof of identity, proof of current address, proof of income

Let's look at these one by one...

Income

You will need to be in employment or self employment and have proof of income. If you are employed, you would normally be expected to provide 3 monthly payslips together with Bank statements showing the salary credits. See information regarding mortgages for self employed

If you are self employed then you will need at least one years full accounts unless you are employed as an IT Contractor - see our page on IT Contractors

You will need to prove that you are legally resident in the UK - for example sight of current Visa. The Visa should have a reasonable length of time left to run. There should be at least 6 months remaining on your current Visa.

Address history

All lenders will ask for your address history over the last 3 years. They will do a credit search on mortgage applicants. They will expect to see evidence of financial arrangements at the addresses given. 

The longer the UK address  history you have showing responsibility in managing your commitments, the more confident lenders will feel about lending you money

Credit history

Your credit history is collected by credit reference agencies

You can view your credit history by contacting the credit reference agencies. The main credit reference agencies are Equifax and Experian. You can request a copy of your credit file and it should be instantly available. There may be a fee to pay for these reports. The credit reports from the different agencies should be identical but occasionally differences will appear

Your credit history will be recorded and any missed payments will be visible

Ideally your payment record should show all payments made on time and in full.

If there are missed payments these will be visible including the number of missed payments

Once the number of missed monthly payments reaches 3 or more it may be classed as a default. 

Missed payments and defaults are BOTH regarded as adverse credit

There are other types a adverse credit. For example, county court judgments and bankruptcy.

You should try to avoid ANY adverse credit as it will affect which mortgages are available to you

Read more about Mortgages with adverse credit 

It may help support your credit score if you were to take out a Credit card. However, we recommend that you CLEAR any credit card balance EVERY month as the interest rates charged by credit card companies are high and any uncleared balance will reduce your borrowing potential.

You should open a UK bank account and provide your home address - this will show on your credit file.

If you are a tenant and have a minimum 6 month tenancy agreement then you should register with the local authority to pay council tax.

Phone contracts and Utility contracts (Gas, Water, Electricity) may also show on your credit file

Deposit

You will need a deposit. If you have a good credit history and you have at least a 5 year history of residence in the Uk then you might just need a 5% deposit

If you have lived in the UK for at least 3 years but your income is over £75k then providing you have a good credit history then you may just need a 5% deposit

If you have lived in the UK for at least 2 years then it is likely you will need a minimum 10% deposit

The larger the deposit you have the better the mortgage rates available

Supporting Documents

You will need to provide the following documents for any mortgage application:

• Proof of identity; Passport or Driving licence

• Proof of address; Bank statements or recent Utility bills (Gas, Electric, Water, Landline Telephone) or Council tax bill

• Proof of income; including 3 months bank statements

• Proof of your right to reside in the UK (Visa etc)

• Proof of your deposit

Proof of permanent right to reside 

This could be verified to one of the following:

- For EEA nationals an Immigration status 'share code’ - customers who can view their immigration status online at gov.uk can provide a share code which lasts for 30 days and we can use to view their immigration status e.g. settled or pre-settled status

Please note only ‘immigration status’ share codes starting with an ‘S’ are acceptable and not ‘right to work’ or ‘right to rent’ share codes

- Indefinite leave stamp in passport including: Indefinite Right (or Leave) to Remain/Enter; Right of Abode; 'There is at present no time limit on the holder's stay in the United Kingdom'

- Biometric Residence Permit showing 'indefinite' rights to remain (this includes 'indefinite leave to remain', 'indefinite leave to enter' or 'no time limit')

- Letter from the Home Office confirming indefinite right to remain in the UK

What types of Mortgages are available for foreign nationals

Foreign nationals will be restricted generally by their length of residency in the UK and by their credit history

We recommend that you contact us before you start house hunting so that you have an agreement in principle for a mortgage from a lender

An agreement in principle will be necessary to show Estate Agents that you are in a position to buy

We do not charge any broker fees so would be a good choice for you - please read more about no broker fees and why this is important

How we can help Foreign Nationals

As a whole of market Mortgage Broker we have a good knowledge of which lenders can lend and in what circumstances

Read more about why use a mortgage broker

We will also help you to make good choices with your mortgage so that you get a good deal

We will manage your mortgage application to give it the best chance of success

We will do all this without charging you any fees - read more about no broker fees and why this is important

We can arrange insurances if required. 

How to apply for a foreign national mortgage

Please fill in our Mortgage Enquiry form and lets make a start