Altun Finance Limited: Start Your Property Journey with Mortgages for Non-UK Residents

Surprisingly, you don’t have to hold UK citizenship to secure a mortgage and become a property owner in the UK. Non-UK residents have the opportunity to embark on their journey up the UK property ladder, even without possessing a British passport. However, it’s important to note that the process may entail some additional complexities and non-UK citizens generally encounter slightly higher interest rates compared to their UK counterparts.

While a few high street banks offer mortgages for foreign nationals, the options available are relatively limited due to the small number of lenders providing these mortgages.

Types of Mortgages for Non-UK Residents

Each bank sets its own terms, making it crucial to explore different options and conduct additional research on specialist lenders and building societies to ensure you secure the most suitable deal.

There are three primary types of mortgages for non-residents:

• Foreign National Mortgages
Typically available to EU citizens, these mortgages require a UK bank account, a three-year EU presidency, and a permanent job in the UK. Applicants must have lived and worked in the UK for a minimum of six months.
• Offshore Mortgages
Used by those who wish to buy property in the UK specifically as an investment. These mortgages often require a deposit of 25%, although some lenders may accept as little as 15%.
• Residential Currency Mortgages
This type of mortgage is ideal for individuals whose salaries are paid in a different currency. It allows borrowers to secure a loan in the same currency as their income, eliminating the need for costly currency exchanges and mitigating potential inflation concerns.

Mortgages for EU Citizens

EU citizens generally have an easier time obtaining a mortgage in the UK, as lenders tend to treat them similarly to British citizens. This applies to all 27 countries within the European Union, including Iceland, Norway, Liechtenstein, and often Swiss nationals as well.
EU citizens have a smoother path to securing a mortgage in the UK, with lenders treating them

To increase the likelihood of mortgage approval:
• It’s advisable for EU citizens to have lived and worked in the UK for a minimum of 12 months before applying.
• The longer the duration of UK residency and credit history, the better.
• Establishing a UK bank account for direct debits and having a mobile phone contract can strengthen your mortgage application.
• Maintaining a good credit score by making timely payments on credit cards, loans, and overdrafts is crucial.
• Registering to vote, if eligible, significantly enhances your chances of securing a mortgage from a UK lender.

Mortgages for Non-EU Citizens

Non-EU citizens with no traceable credit history will need to meet additional criteria and navigate specific challenges. The duration of permitted stay in the UK and the type of visa held are critical factors. Ideally, having at least two years left on the visa and proof of indefinite leave to remain in the country strengthens the mortgage application. While lenders prefer residence permits over work-only permits, some will consider applicants based solely on work permits.

The essential requirements for non-EU nationals applying for a UK mortgage include:

• UK residency for two years or more
• A permanent job in the UK
• An active UK bank account
• A valid UK work permit or residence rights

These requirements ensure that applicants have built up a UK credit history, a standard expectation when applying for a mortgage. This provides lenders with confidence regarding the borrower’s ability to make timely payments.

Visa Requirements and Mortgage Eligibility

The type of visa held significantly impacts mortgage eligibility, as visas determine an individual’s status in the country and directly relate to lending criteria. The three main visa types include:

• EU Citizens: As mentioned earlier, EU citizens generally have access to the same mortgage options as UK nationals, considering credit history and personal circumstances.
• Tier 1 or Tier 2 Work Visas: Having a longer period remaining on the visa enhances the chances of securing a mortgage. Lenders prefer applicants with at least 1-2 years left on their visas, as it demonstrates the ability to meet mortgage payments and reduces perceived risk.
• Family Visas: If you are married or have blood relatives in the UK, a family visa offers the advantage of joint applications and the ability to work.

How to Get a Foreign National Mortgage?

If you are already living and working in the UK, maintaining an active UK bank account and paying direct debits through it will work in your favour. Having a permanent job in the country demonstrates stability and commitment to investing in the UK housing market. It’s worth noting that some lenders accept mortgage payments in foreign currencies and from income earned abroad.

How Much Can a Non-UK Resident Borrow?

The amount a non-UK resident can borrow depends on personal circumstances. Generally, private lenders are more flexible than high-street lenders and consider broader income, investment portfolios, and net worth when determining borrowing capacity.

High street lenders typically base their offers solely on annual salaries, regardless of UK citizenship. It’s important to remember that a mortgage is secured against the property, and failure to make repayments may result in repossession.

Contact Altun Finance Limited for Non-UK Resident Mortgages

Our experienced mortgage brokers and advisors will guide you through the process, explore the available options, and help you secure the right mortgage for your unique circumstances.

Take the first step towards owning property in the UK by contacting Altun Finance Limited today.