Mortgages for visa holders and residency status

Foreign nationals living in the UK on a visa can get a mortgage from many lenders, though criteria vary more than for British citizens. Lenders look at the type of visa, how long is left on it, how long the borrower has lived in the UK, their employment, their UK credit history and the size of the deposit.

Skilled Worker visa holders, formerly Tier 2, make up a large share of these applicants. Family, spouse, graduate and other visas are also accepted by some lenders, often with different conditions.

Many lenders ask for a minimum period left on the visa, often a year or more, and some ask for a minimum time living in the UK, such as two or three years. Others take no fixed minimum and assess each case on employment, credit history and deposit. Recent arrivals usually find fewer lenders and need a larger deposit.

A visa nearing its end is not always a problem if a renewal or settlement application is likely, but lenders may want evidence of the employer's sponsorship and the borrower's plans. Time spent in the UK also builds a credit history, which helps with every lender.

Borrowers with indefinite leave to remain, or settled status under the EU Settlement Scheme, are usually treated like British citizens by most lenders, provided their income, credit history and deposit meet the usual criteria. Pre-settled status is accepted by many lenders too, though some ask for a larger deposit or a minimum time in the UK.

Lenders check status with a share code or the relevant documents, so having proof of status ready speeds up the application. Some lenders also ask for a residence history covering several years.

Deposits for visa holders vary widely. Borrowers with long UK residence, a strong credit history and settled status can often borrow with the same deposits as British citizens, while recent arrivals may need a quarter of the price or more. The deposit is checked for source of funds, including money moved from abroad.

A thin UK credit file is a common hurdle for newer arrivals. Registering on the electoral roll where eligible, keeping a UK bank account and a credit card in good order, and paying bills on time all help build a record.

Income from an overseas employer or in a foreign currency is assessed differently again, as explained on the foreign income mortgages page.

Visa holders buying their first UK home can usually use the first-time buyer stamp duty relief if they are UK resident for stamp duty purposes and have never owned a home anywhere. Some government and shared ownership schemes have residence or immigration rules, so eligibility needs checking for each scheme before applying.

Stamp duty residence is tested on days spent in the UK, not on visa status, so a visa holder who has lived here for some time is often treated as resident and avoids the non-resident surcharge.