All you need to know about getting a Mortgage for Indian Nationals on a Visa in the UK
What we will cover:
✔ Mortgage for Indian Nationals on a Tier 1 and Tier 2 Visa
✔ Criteria and Underwriting rules for Indian Nationals
✔ Advice on deposit, rates and affordability calculations
✔ Low deposit high income multiple schemes
First of all thank you for visiting our site I know how difficult it is to get some precise information on getting a mortgage for Indian Nationals on a Visa. I know is never fun to read lots of forums comments about what the lenders may or may not lend on so I have tried to give you a steer on how we should be able to help.
I would like to start off by saying that I’m not an Indian National myself but have helped many applicants living and working here to fulfil their dream of owning a home by arranging their mortgage. When it comes to getting a Mortgage for Indian Nationals on a visa you really do need professional advice from someone that knows what they’re talking about or you can get yourself into a lot of unnecessary trouble.
As someone who is in gainful employment in the UK it is to my mind the natural stage to start to look at homeownership here. Generally you will find UK mortgage lenders as a whole shy away from anyone you does not have the permanent rights to indefinite leave to remain in the UK but please don’t despair as we have options open to you, please read on to find out more.
It is not uncommon for my clients to start their research online but this can only take you so far and as buying a home is possibly the biggest purchase you have ever made you need toseek professional help as it can’t be returned to Amazon if you are dissatisfied.
Anybody with the access to Internet can source a mortgage rate but actually getting the mortgage is the key as UK lenders have different criteria when it comes to foreign nationals which spans across: County, Visa Type, Credit Profile, Date entered UK, Date of visa Expiry/ Renewal, Occupation, Date started work, Length in current role, Martial status, Deposits, Affordability Calculations and that’s just the some of the headings.
For example: one mainstream UK Mortgage lender allows ‘gifted deposits’ but will not allow ‘gifted deposits for foreign nationals’; others insist on ‘gifts’ being from UK bank accounts rather than from overseas. Other restrictions may apply around when you came to the UK, date you started to work and how long the visa has to expiry or renewal.
Info like this will never be stated on their manual or website and will be simply dealt with at underwriting level. If the broker has not dealt with foreign nationals a lot they will never know this and will simply submit your application not knowing that gifts from outside the country will not be allowed.
In my experience when it comes to getting a Mortgage for Indian Nationals affordability is generally not a huge problem as applicants normally have good income. The biggest problem is coming up with the deposit so I would say 80% of the Mortgage for Indian Nationals are looking for a 90% loan to value mortgage which means they can simply come up with 10% deposit at the time. That’s totally understandable and they have left their lives assets and family structure in a different country and are now living and working here for a limited period so they savings are not as much compared to someone who’s lived here in the UK lives.
Majority of my past clients who have looked for a Mortgage for Indian Nationals have been here renting and working within corporate organisations with occupations such as IT consultants, accountants or bank employees therefore we have tried to formulate the best strategy to get them a mortgage.
Another example of this can be if you are a self-employed IT consultant looking to work off your daily rate rather than your submitted accounts as generally your income will be greater on the daily rate before you expenses have been taken out. In this instance we have a tailor-made solution for you.
How Much Will A Visa Mortgage Cost?
90% Mortgage for Indian Nationals on a visa looking to put down 10% deposit.
It’s obvious to say the more deposit you have the better the rates become but in the below scenario. There is quite a big difference between 10% deposit and a 15% deposit in relation to the rate. So if you have more put down more to get a better deal.
EXAMPLES: Based on a purchase price of £250,000 and a repayment mortgage over 25 years. Mortgage products below are current as at 18 July 2014:
Product One: 2 Year Fixed – Minimum deposit 15% – Mortgage £212,500
Initial pay rate 3.24% (APR 4.2)
Valuation Fee £210 / Arrangement fee £999
Currently at £1,034.42 per month until 30/09/2016. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,141.90 per month.
The main early repayment charges are 3% of the amount repaid in the fixed period. There is a telegraphic transfer fee of £35. Redemption Fee £80 on full redemption.
Product Two: 2 Year Fixed – Minimum deposit 10% – Mortgage £225,000
Initial pay rate 4.79% (APR 4.9)
Valuation Fee £Free / Arrangement fee £Nil / £250 cashback
Currently at £1,287.95 per month until 02/10/2016. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,281.89 per month.
The main early repayment charges are 3% of the amount repaid in the fixed period plus the repayment of the cost of the valuation and £250 cashback.
There is a telegraphic transfer fee of £35. Redemption Fee £225 on full redemption.
For more information on getting a Mortgage for Indian Nationals on a visa please contact us on (020) 7993 2044 or alternatively complete the enquiry form on this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London and is an experts in getting a mortgage for doctors in the UK.
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.