With over 100 lenders in the UK mortgage market, only 10-15% of them will consider applicants on visas. However, the good news is that an increasing number of lenders are willing to work with foreign nationals who do not yet have indefinite leave to remain (ILR).

When it comes to visa types, there are a few that are more commonly accepted by lenders. These include:

• Tier 1 (Entrepreneur/Global Talent) Visa: A flexible option, especially for business owners or investors in the UK.

• Tier 2 (Skilled Worker) Visa: The most common visa for people working in skilled jobs.

• Spousal and Family Visas: These can sometimes be more straightforward if your spouse or partner already has ILR. In most cases, Spousal Income can be used as a supporting income but cannot be used as a standalone application.

It’s important to know that the longer you have been in the UK, the better your chances of getting a mortgage. Lenders are more likely to approve your application if they can see you’ve built a financial history in the UK.

If you already have Indefinite Leave to Remain you will be treated as a UK Citizen for lending purposes and will have no special restrictions in terms of products and lenders that are available to you.

Foreign nationals can access mortgages at various LTV ratios depending on their visa type and financial situation. For example:

• 75% LTV Mortgages are the most common and tend to come with fewer restrictions.

• In 2024, an increasing number of lenders started to offer higher LTV mortgages (up to 95% LTV Mortgages), but they may have additional requirements such as a second applicant with ILR or a certain level of minimum income or certain visa related restrictions.

Being on a visa and being an immigrant does not mean that you will not get the best rates on the market. There are a lot of High Street Lenders that are open to visa applicants. It will be down to your individual circumstances if you can qualify with those lenders. In most cases, if you qualify for the mortgage, you will get exactly the same rates as any British citizen in the UK.​​​​​​​​​​​​​​​​

Despite the increased appetite from lenders, securing a mortgage as a foreign national can still be a complex process. As mortgage advisers specialising in foreign nationals, we face three primary challenges when helping obtain mortgages:

1. Visa Restrictions

2. Source of Deposit

3. Property Type 

One of the challenges when applying for a mortgage as a foreign national is dealing with visa restrictions. While some lenders are flexible, others are stricter, and you’ll need to meet certain requirements.

For example, the length of time you have been in the UK is a big factor. While quite a few lenders don’t set a minimum time requirement in their policies, in practice, most lenders will expect you to have lived in the UK for at least 6 months before you are able to pass their internal credit scoring.

Another issue is that some lenders will require you to have a certain amount of time left on your visa. For instance, they might only lend to you if you have at least two years left on your visa. The good news is that more and more lenders are relaxing this requirement, and some won’t impose a minimum time at all.

Proving the source of your deposit can often be the biggest challenge for foreign nationals. When it comes to the deposit, the most important thing is that it’s traceable. This means that the lender will want to see clear evidence of where the deposit came from.

Let’s explore how you can ensure your deposit is acceptable to UK lenders.

If you have saved your deposit while living and working in the UK, there won’t be any extra requirements from the lenders apart from showing the latest 3-6 months of bank statements evidencing the savings (standard requirements for this type of deposit for all types of applicants).

Yes, it is possible to use a deposit from abroad for a UK mortgage. This could be a gifted deposit from your family or perhaps a sale of an asset in another country. In such cases, the lenders will require documentation proving the origin of the deposit, such as:

• Bank statements showing the transfer of funds from abroad to your bank account.

• Gift letters if the deposit is a gift from family members.

• Sale documents for funds originating from the sale of property or assets abroad.

Being able to prove the legitimacy of your deposit will ensure a smoother mortgage application process. If you need guidance on how to gather these documents, consider booking a session with a specialist mortgage adviser here.

A lot of foreign nationals often gravitate toward flats or apartments, especially if they’re living in a big city where these types of properties are common. This type of property tend to be more affordable and easier to maintain.

Securing a mortgage for flats comes with its own challenges. Lenders are often more cautious when it comes to valuing flats, and some may even have stringent policy restrictions on lending for such properties.

It’s essential to ask the right questions when looking at flats, to ensure that there won’t be any issues with the valuation or purchase further down the line.