Mortgage for Foreign Students on a Tier 4 Visa

A) Yes

A) Two years in total. They do not have to be the last two years or indeed two consecutive years.

A) 10% deposit. So if you are looking at buying a property for £150,000 you would need to put in £15,000 as a deposit.

A) No, the Foreign National Mortgage Lenders will accept “gifts” from people strongly connected to you e.g. parents siblings, uncles, aunts and even good friends. The gift would need to be non-repayable and the donor cannot have a financial interest in the property.

A) Yes, including “gifts”; the key is to being able to justify the originating source of the funds e.g. if its land sold in India any legal documents that evidence this would be helpful.

A) No, mortgage for foreign students on a Visa start from a minimum if £25,001. The chances are you’ve on a student visa this likely to your first home in the UK and as such scrutiny on the deposit will be greater as the proceeds will not be coming from a property sale which is a safest traceable form.

A) This could be the originating source but it would need to be in a standard bank account ahead of applying for the mortgage.

A) From the Foreign National Mortgage Lenders perspective they apply the same rules as someone who has permanent rights to reside in the UK.
This is typically 4 to 5 times income depending on the size of income and deposit. As qualification for a Tier 4 student visa you are probably subject to a maximum level of earnings or a part time job which can severely hamper your chances of buying somewhere big.

A) A joint mortgage application is the most common way. The Foreign National Mortgages Lenders will expect all applicants to be living in the property fulltime. A second home basis may also be considered where the other applicant lives there on occasions.
Another method, is for a blood relation who has permanent rights to reside in the UK and lives in the UK, to act as a guarantor this will also factor in their financial commitments so they will need to be on a very decent salary.

A) Up to 4 applicants can go on the mortgage however only the highest two earners will be used in the affordability calculation. Also, if you are thinking of grouping in with other students and putting locks on internal bedroom doors this might be problematic when you try to remortgage as the Foreign National Mortgage Lenders might not be clear that the property is solely residential and not part let.

A) Normally the Foreign National Mortgage Lenders will allow lodgers provided the lodger number is equal or less than the applicant number however the income cannot be used towards the mortgage affordability.

A) No, this money is meant for your study. It also is not ongoing regular income and a mortgage is a long term financial commitment that needs to be serviced by regular income throughout its duration

A) Yes.

A) Yes, potentially provided there has been regular work for the last 12 months, ideally with the same employer, and supported by payslips and bank credits. Ad hoc and casual work would not be usable.

A Yes, the employer would need to be based in the UK and as a guide I would say a 6 month track record would be needed. All taxes will need to have been paid by you and the employer. Also you must be within the Visa restrictions on the number of hours you can work.

A) The Foreign National Mortgage Lenders do not have country restrictions. And, the fact you are here means you passed the Visa programmes own rules. Behind the scenes they may carry out extra checks on students from “Sanctioned Countries” particularly an eye on the deposit.

A) The Mortgage Lenders will not ask for qualification certificates or ask you to sit a test but it is strongly advisable that ALL applicants have a good grasp of English as a mortgage is a large financial commitment and you need to understand and appreciate the terms and your responsibilities. This should hopefully be a non-issue, as normally, as part of the Visa entrance programme a reasonable level of English comprehension is required

A) There is very limited choice but the rates are competitive and the choice is normally good: two year trackers, term trackers, two, three, five and even on occasions ten year fixes.

A) I appreciate the Tier 4 Visa scheme is normally open to students from the age of 16 years however the Foreign National Mortgage Lenders will not grant mortgages to anyone under the age of 18 years

A) Yes, mortgages are normally available to retirement age however the shorter the term the hasher the affordability requirements.

A) In my opinion it is likely that you will need to buy with someone else who has a higher grade of Visa such as a Teir 1 or Teir 2.