Foreign National Mortgages – 5% deposit for Visa Applicants to help get a 95% Visa Mortgage NOT under Help to buy.
Well what a wonderful way to kick off 2017 a brand new facility for 95% Visa Mortgage for foreign national applicants on a Visa, thats right a Mortgage with 5% deposit for Visa Applicants! The Visa must provide the ability to “work” to the applicant as the mortgage will need to be serviced.
So what does this mean? See the table below which gives you an idea of the deposit needed (provided your status is acceptable to the Lender).
| Purchase Price | Deposit required | Potential mortgage |
| £100,000 | £5,000 | £95,000 |
| £150,000 | £7,500 | £142,500 |
| £200,000 | £10,000 | £190,000 |
| £300,000 | £15,000 | £285,000 |
| £400,000 | £20,000 | £380,000 |
| £526,315 | £26,315 | £500,000 |
Please note the maximum loan at 95% is £500,000.
What can the 5% Foreign National Deposit consist of?
The 5% deposit can be funded by the following:
- Dividend from a UK company.
- Gift from a family member who is related to at least one of the applicants by: birth; blood; marriage; civil partnership; step children; adopted children; in-laws; as ‘Common Law’ partners or co-habitees.
- Sale of property.
- The proceeds can originate in the UK or from abroad (certain countries may be excluded).
The deposit cannot come from borrowing elsewhere.
Foreign National 95% Visa Mortgage Product
For example of the 95% Visa mortgage product click here.
Alternative Solutions
If the deposit can be increased to 90% then we can also help the following:
- Spousal Visa applicants (call for details).
- Student Visa applicants purchasing with another applicant who holds either s Tier 1 Visa; Tier 2 Visa or has permanent rights to remain in the UK.
- Refugee Visa purchasing with another applicant who has permanent rights to remain in the UK.
For more criteria information on Mortgage with a Visa please click here.
Example Product Rate and Fees – 95% Visa Mortgage for Foreign Nationals
[ezcol_1fifth]Initial Rate: 3.34[/ezcol_1fifth] [ezcol_1fifth]Subsequent: 3.74[/ezcol_1fifth] [ezcol_3fifth_end]The overall cost for comparison 3.80 APRC[/ezcol_3fifth_end]
The total amount you must pay back, including the amount borrowed is £462,263.16
Features: Either 3 years in the UK (excludes student or refugee periods) or 2.5 years left to run on the Visa. Client must have an excellent credit profile with good earnings. This deal is only for older properties and is not for New Build houses or flats.
| Type and initial benefit period | Fixed to 31/03/2019 |
| Minimum deposit / equity: | 5% |
| Valuation fee | £430 |
| Booking fee | £0 |
| Lender arrangement | £999 |
| Telegraphic transfer / CHAPS fee | £161.27 |
| Legal fee | £216 |
| Early repayment charge | 3/2% of the amount repaid in the fixed period |
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage
Important Information
Residential and Buy to Let Mortgages
Rates current as at 03/01/2016 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
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. To get in contact with him please click here.
