Asylum seekers on a refugee visa Mortgage options from the Experts

This article is aimed at mortgages for Asylum seekers on a Refugees Visa who are in the UK and are looking to buy a property.

The World is sadly divided with conflicts in Syria, Ukraine, Iraq, Iran, Yemen, Libya, Somalia, Sudan, South Sudan, Afghanistan to name a few.

The rest of the World can offer Refugees a home in various degrees subject to multiple red tape hoops being jumped through. Should decide, and are accepted, to settle in the UK you will be provided with a residency permit / Visa with a finite deadline which may be renewed. This expiry date might help you decide whether to settle permanently in the UK and start a new life here.

If you’re set on staying then it’s only right you should be granted the opportunity to purchase a property to live in with the help of a mortgage. However, you’ve probably tried already if you’re reading this article and found that this too carries its own entry issues.

Most UK Lenders look for permanent rights to reside in the UK before they will consider lending. Even some active Visa Mortgage Lenders shy away from mortgages for Asylum seekers / Refugees which I can only summarise is to avoid bad publicity should they need to repossess the property a result of non-payment.

That said I have personally arranged many mortgages for Asylum seeker Refugees on a Visa here in the UK including for my fellow compatriots from my native Iran. The mortgages do however need “hand-holding” as there is a very small number of Refugee Visa Lenders, each with their own rules, so you need to get the application process right first time.

To get an insight into whether you will be eligible for a mortgages for Asylum seeker on a Visa read through the following frequently asked questions section below and speak to a foreign national mortgage expert such as Niche Advice.

Frequently asked questions on mortgages for Asylum seeker Refugees on a Visa.

Q) What is the minimum deposit for a mortgages for Asylum seeker Refugees on a Visa?

A) The standard position is 25% to 30% depending on the Visa Mortgage Lender. However, there is scope to put down as little as 5% if you are either buying with someone who has permanent rights to reside or under the Help to Buy Scheme.

Q) What is the minimum amount of time need to be living in the UK to qualify for a Asylum seeker Visa mortgage?

A) In theory 6 months however from experience you will need to have an established UK credit profile so it’s likely to be longer. I can provide a better indication if you supply a multi-agency credit report for me to assess, just click on the Free Credit Report Button on our website.

Q) Do I need to put in the whole deposit myself or can others contribute towards my Asylum seeker Refugee Visa Mortgage?

A) It depends on the Visa Mortgage Lender. The standard position is “immediate family” however there are options available for extended family and even “good” friends.

Q) Can the deposit come from abroad on the mortgages for Asylum seeker Refugees scheme?

A) Certain Visa Lenders rule this out straight away. I suggest you call me to talk this through as this is an area that needs to be explained fully.

Q) Is the deposit size restricted?

A) No, mortgage for Asylum Seekers on a Visa start from a minimum if £25,001. The chances are you’ve on a Refugee 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.

Q) How is the affordability for the mortgages for Asylum seeker assessed?

A) From the Visa 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. Help to Buy is limited to 4.5 times under their own Scheme rules..

Q) How many applicants can I buy with?

A) The standard position is two applicants. I do however have a Visa Mortgage Lender who allows up to four applicants.

Q) My job is an hours as required zero hours contract can this income be used for mortgage affordability?

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.

Q) I work for a family business can I use the income towards my mortgage for Refugees?

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.

Q) Does the Country I originate from affect my chances of Asylum Seekers visa mortgage?

A) The Visa Mortgage Lenders do not have country restrictions the key determiner on whether they will lend is the Visa type, and as mentioned previously many do not like Asylum seeker Refugee visa status.

Q) Do I need to be able to read, write and understand English to qualify for the mortgages for Refugees scheme?

A) Yes.

Q) Does this article relate to Tier 4 general Visas for students?

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.

Q) Are the interest rates higher for mortgages for Asylum seeker Visa Mortgages?

A) There is very limited choice but the rates are standard and competitive.

Q) Are buy-to-let mortgages available for Refugees?

A) Yes, but you will in my opinion need to be a UK homeowner already to be successful.

Frequently asked questions on mortgages for Asylum seeker / Refugees on a VisaSelection of Fixed Rates

Deposit level	25%	5%	5%
Buying	A standard purchase On your own	A standard purchase with someone with permanent rights to reside in the UK	Under Help to Buy On your own
Initial rate	2.74%	3.44%	2.84%
Subsequent reversionary rate	4.25%	4.24%	4.25%
The total amount you must pay back, including the amount borrowed is	£348,952.07	£451,212.21	£350,227.83
Overall cost of comparison APRC	3.8%	4.0%	3.7%
Type and initial benefit period	Fixed rate to 02/08/2027	Fixed rate to 31/07/2027	Fixed rate to 02/08/2027
Loan-to-value	75%	95%	75%
Lender valuation fee	Free	Free	Free
Lender booking fee	£Nil	£Nil	£Nil
Lender product fee	£999	£Nil	£Nil
Cashback from the Lender	£Nil	£Nil	£999
Basic legal costs	Payable	Payable	Payable
Our broker fee charge	From 0.5% of the loan size

NOTES

* Rates as at 13/5/2022.
* Figures produced using Twenty7tec software.
* True Cost factors in the interest rate, mortgage set-up costs and any cashback rebates. It assumes the product fee is paid and is no greater than £2,500.
* The comparison is based on an assumed purchase price of £300,000 over a 25 year mortgage term.
* It looks at repayment method of “capital and Interest” for residential mortgages.
* Eligibility will depend on your own personal circumstances.

Health Warning

Your Property is at Risk if you do not keep up with your mortgage repayments.

Niche Advice arranges mortgages and is not a Lender.

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. To get in contact with him please click here.

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