Mortgage with Tier 1 Visa for foreign national applicants living and working in the UK
Many Tier 1 Visa mortgage applications are unfortunately declined by lenders. To make matters worse the decision is not an initial one at the start but normally way down the process simply because the Adviser did not fully appreciate the lender’s criteria around foreign national applicants.
This problem is not just isolated to the ill-informed Mortgage Broker but seems endemic to the Bank’s own frontline staff who are usually detached from the ultimate decision makers.
So hopefully by reading this article you will have a better understanding of what is required if you’re looking to get a mortgage with a Tier 1 Visa as a foreign national.
Tier 1 Visa mortgage applications date entered in the UK
The date of arrival in the UK is very important as it starts the clock in relation to your credit profile. This date often needs to be at least 2 ½ years before application however there are exceptions.
Tier 1 Visa mortgage applications date you started your work
This is another significant milestone as it proves that you are no looker a tourist on an extended vacation but have the desire to settle down in the UK and start a life here. It also assures the lender that you are going to pay UK tax. The period of work can be much shorter than 2 ½ years mentioned above depending on the lender.
Tier 1 Visa mortgage applications date left on your current VISA
Of the lenders active in this market most lenders prefer to see 1 year left to run. We do however have options on a shorter time scale particularly if you have been in the UK for 2 years.
Tier 1 Visa mortgage applications salary and affordability
To be honest I don’t see much of a problem with foreign nationals on this point because many of them are actually well played working for multinational companies or IT institutions. Tier 1 of course by definition is a sign of excellence.
Tier 1 Visa mortgage applications deposits
As I said the majority of foreign nationals working here on a Tier 1 Visa have got good salaries but often their Achilles heel is often the lack of a large enough deposit. Fear not we have access to lenders that only require 10% deposit for foreign nationals here on a Tier 1 Visa and a Tier 2 Visa.
Another major issue that I come across is the fact that the majority of the money could lie within an international account and expertise is needed to properly demonstrate not only affordability but also origination of funds. We have template documentation in place to help the applicant’s thoroughly demonstrate these points to lenders.
Fees and pricing for Tier 1 Visa mortgage applications
When it comes to product fees I generally try to keep things down so I got access to exclusive products that do not have any lender fee or valuation fees saving the applicant quite a lot of money upfront.
In terms of what we charge for foreign national mortgages for Visa applicants it is generally half a percent of the loan amount paid only on completion of the mortgage, this means you do not pay us a penny until you have bought your place and have completed on the deal. This point is very important because a lot can go wrong throughout the mortgage chain.
The reason we have put this structure in place is because we confident we will get a positive outcome for you.
I am Payam Azadi and will be delighted to speak to you an answer your questions in detail about Tier 1 Visa mortgage applications. My phone number is (020) 7993 2044 or alternatively complete the enquiry form on the right-hand side of this page and I will personally come back to you.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.