What level of deposit is needed for Foreign Nationals on a Tier Visa who want to get a mortgage?
The size of the deposit for Foreign Nationals on a Tier Visa will depend on your personal circumstances, when you entered the UK and the remaining term on your Visa.
As a general rule UK mortgage lenders segment their tolerance to lending by percentage of borrowing against the purchase price and same principle applies to foreign nationals. This is known as loan-to-value (LTV).
As with all mortgage applicants you will need to demonstrate affordability as insufficient income will result in a reduction in your borrowing potential.
Another key consideration is the property you wish to buy. In my experience it is common for Foreign Nationals on a Tier Visa to gravitate towards newly built properties. The UK lenders are generally more nervous about their worth of ‘new builds’ as historically they have had hidden incentives from the builders and can depreciate if sold on quickly as they are effectively ‘second hand’, as such the lender might cap the maximum LTV particularly if it is a flat.
Please do not get disheartened as I have helped many applicants on tier 1 or tier 2 visa get a 90% mortgage (just 10% deposit) with reputable banks provided they been in the UK for a few years, however as explained about there are many factors to consider so it is vital that you seek independent professional advice within this sector.
Be warned there are many pitfalls when applying to get a Foreign National mortgage on a Tier Visa in the UK, so why not try me as I have many years of experience helping with applicants within the foreign national mortgage sector, and consider my firm to be one of the main specialist mortgage brokers dealing with foreign national applicants looking to get a mortgage in the UK.
For more information on getting a mortgage for Foreign Nationals on a Tier Visa complete the online enquiry form on this page where I will personally and in touch to try and answer your enquirers.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.