UK Foreign Student Mortgage Tier 4 and Tier 1 Visa

A) If we look at the overall mortgage picture only about a tenth of the UK Mortgage Lenders will lend to foreign nationals full stop. The extra checks on identity and source of deposit being the two main barriers. However it’s also worth noting that historically regional Building Societies were established to serve their local communities so are xenophobic by nature.

The pool of potential Mortgage Lenders shrinks further when Student Visas come into play. This decision is probably more reasoned as it’s based around mortgage affordability. Certainly it’s common for Student Visas to have restrictions on them limiting work to a maximum of say 20 hours during in term time. Income and mortgages are intrinsically entwined and the blunt conclusion is it simply won’t be affordable.

A) No, income must come from employment.

A) Anti-Money Laundering rules apply. There will need to be a full audit trail back to the origins of the money. Certain countries may be blacklisted or prompt further checks.

A) Yes, as a general rule Mortgage Lenders like to understand why the donor is gifting the money to you particularly if the link in your relationship is unclear. To expand its quiet natural for a parent to want to help their child but not so if it’s your lecturer. It must also not be repayable “a true gift” and the donor should not have an interest in the property.

A) Generally it’s not what the Mortgage Lender will want or expect and may invalid the mortgage contract. One or two lodgers may be possible if the agreement was informal, they are no relation to you, and they have not contributed towards the deposit. The lodger income cannot be used towards your foreign student mortgage affordability.

A) If you are buying on your own, in my opinion you will need 10% deposit, and 25% if you have been in the UK less than 2 years. If you are buying with someone you has indefinite leave to remain then 5% is possible.

A) Not necessarily, the Foreign National Mortgage Lenders are normally large banks with a big appetite to lend.

A) Everyone’s circumstances will be different so this should be talked through with a professional foreign national Mortgage Broker such as Niche Advice. As this is likely to be your first home fixed rates will allow you to acclimatise and budget. The Visa length will be running down so your opportunities to re-fix later on may diminish. If you Visa expires without renewal the Foreign National Mortgage Lender may allow you to let the property temporally until it can be sold, and being inside a fixed period may aid that conversation as there would be financial implications in the form of early repayment charges which would be unfair on you.

A) In theory “no”, however in practice you will probably need a 6 month track record of UK credit to pass the Foreign National Mortgage Lenders computer credit score test. If you are here on a Tier 1 Visa and running your own business then you will need 2 year’s trading in the UK.

A) Most Foreign National Mortgage Lenders look for one year remaining, however there are some that don’t have a minimum.

A) No, the best way they can help would be with the deposit to reduce the borrowing.

A) You are typically looking at between 4 to 5 times your annual income.