Foreign National Mortgage Deposit – How much do you need as a down payment?
When I first started helping foreign nationals get UK mortgages over fifteen years ago it was a poorly served market, even fast forwarding to 2022/23 the active lenders with less than twenty five percent deposit were few and far between, however the last 12 months has by contrast has seen a relaxation of the rules with low deposit mortgages for foreign nationals on Visas becoming a real prospect.
From my considerable experience in the field, this is music to my ears, and for the second generation of customers, I’ve helped in the past. Mortgages in the UK have two main barriers deposit size and affordability, with foreign nationals income is rarely a problem as they are usually in good jobs often in the medical and IT fields; skills our country craves. So, the main hurdle has been the deposit. That’s not to say foreign nationals are poor savers I’ve often witnessed the reverse, it’s just UK rents are draining, often money is sent back home to relatives and loved ones, and bringing in money from abroad can be problematic.
The drop to 5% deposit has, therefore, swung the doors open particularly to those buying with someone who has indefinite leave to remain in the UK and those with an active UK credit profile as lending policy is one thing beating the Lender’s internal computerised credit scores is another and that’s where my prep, guidance and nurturing comes in as you can speak directly to me.
So if you are a foreign national looking to buy in the UK with low deposit why not improve your chances of success and speak to an expert in this field.
Table: Rules of 10 Low Deposit UK Mortgage Lenders – Foreign National Mortgage deposit
| Lender | Deposit needed | Need to buy with someone who has indefinite leave to remain | Minimum time in UK* | Time left on current Visa | Minimum income for a single application | Minimum income for a joint application | Countries (England and Wales, Scotland or Northern Ireland) |
|---|---|---|---|---|---|---|---|
| 1 | 5% | No | None | None | £75,000 | £100,000 | E, W, S & NI |
| 1 | 5% | No | 5 years | None | No minimum | No minimum | E, W, S & NI |
| 2 | 5% | Yes | 6 months | 6 months | No minimum | No minimum | E, W, S & NI |
| 3 | 5% | Yes | None | None | No minimum | No minimum | E, W, & S |
| 3 | 10% | Yes | None | None | No minimum | No minimum | E, W, & S |
| 4 | 5% | Yes | 2 years | None | No minimum | No minimum | E & W |
| 5 | 10% | Yes | 2 years | None | No minimum | No minimum | E & W |
| 6 | 10% | No | None | 2 years | £60,000 | £90,000 | E, W, & S |
| 7 | 5% | Yes | 2 years | None | No minimum | No minimum | E & W |
| 7 | 10% | No | 2 years | None | No minimum | No minimum | E & W |
| 8 | 10% | No | None | None | No minimum | No minimum | E & W |
| 9 | 10% | No | 1 year | None | No minimum | No minimum | E, W, S & NI |
| 10 | 5% | Yes | 1 year | 2 years | No minimum | No minimum | E, W, & S |
| 10 | 10% | Yes | 1 year | 2 years | No minimum | No minimum | E, W, & S |
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Notes:
a) Not all Visa types are acceptable – you will need to discuss this with your professional Mortgage Broker.
b) *you will need to have built up a sufficient UK credit profile to pass the respective Mortgage Lender’s internal credit score system.
c) Lender 8 only accepts certain countries of origin.
