95% loan to value mortgages available for applicants on a Tier 1 or Tier 2 visa
Being based in the heart of central London we are obviously one of the premier mortgage brokers aiding foreign nationals on a Visa who now want to buy a property in the UK.
When it comes to getting a mortgage for people on visas there are a number of points to consider in this article I will try to explain how these points have an impact on the lender’s decision. One of the biggest factors for foreign nationals living and working in the UK is providing a large deposit which is often required by most of the UK high street lenders. As a specialist within this market I have access to mortgages of up to 95% loan to value which is a huge bonus this is for standard UK passport holders and foreign nationals.
let’s not beat around the bush getting a good rate is always very important but it’s not a be all and end all to every deal. Getting the mortgage is always the most important. You’ll be surprised how many people fail to understand this point and come to me after they’ve been to other lenders were supposedly good rates but not the right criteria’s. Rates are very much dependent on the applicant’s deposit amount the higher the deposit the better the rate. The difference between a 95% deal and a 60% deal could be 2 ½% rate so it’s always worth putting as much deposit as you can. For more information on Mortgage rates for foreign nationals on Visa please click here to see some of our products picks.
Type of Visa
With some lenders they do differentiate between a Tier 1 Visa and a Tier 2 Visa. For example I do know of one lender which allows a Tier 1 Visa applicant up to 95% loan to value but a Tier 2 Visa applicant only up to 70% loan to value. Rest assured this is not the case for all and we can get up to 95% loan to value with other lenders both Tier 1 and tier 2 Visa applicants.
Length of residence in the UK
Most lenders would want you to be living and working here for at least 6 to 12 months. Depending on how long you have got left the new visas there are some lenders that will insist on You having been here and worked for the last three years. Again it’s down to your own circumstances and our knowledge of the lenders criteria.
Length of Visa remaining
This is probably one of the most important points. The majority of the lenders who are willing to lend to a foreign national require a minimum of two years left on the Visa. This is not always the case and we certainly have got a number of lenders that could consider a lower amount of Visa but this may affect the amount of deposit is required. Again this is something that I will be researching for you and am happy to advise on.
Type of property
Now this is a general point but a very important one as many of the foreign nationals I deal with tend to want to purchase new build properties. Just a word of caution lenders often seen new build properties as higher risk and often require a large amount of deposit typically on new build flats is anywhere from 15%. So be wary if you are a foreign national looking to buy a new build flat and only have 5 or 10% deposit.
DIY mortgages can be a nightmare get expert advice
At the end of the day I write a lot of articles and receive a lot of enquirers from our website and it is in my interest to act on your behalf as your dedicated broker however all I can say is getting a rate or a decision from a lender is only the start of the mortgage application process and trust me when I tell you that there is a hell of a lot more to come and it’s not as easy as what the bank manager told you it was. As ultimately the whole thing is going to be processed in a head office remote underwriting Center so unless you or the adviser has extensive experience in dealing with foreign national mortgages things can get very hairy.
Again not all brokers know the lenders underwriting processes for people that are on a visa as it can be totally different even for lenders they may use other wise all the time.
One example is the fact that some lenders will not accept gifted deposits for foreign nationals so if your receiving a family gift deposit or are transferring money from abroad for your deposit this lender may decline the application but that’s only after the full application has gone in and or when the valuation and application fees have been paid so before you know it you can be a £1000 down and no better off.
For more information on our range of mortgages for foreign nationals with a UK Visa please call us on T: 020 7993 2044 or alternatively complete the online Contact form on this website.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.