Is It Possible To Get A Mortgage In The UK While Being On VISA?

People from all around the world travel to the UK and settle in the country. Many of these people harbour the dream of buying their own houses. However, being on a VISA is a factor that should be considered before purchasing a new house in the UK.

If you live in the UK and are still on a VISA, you can purchase a property on a mortgage, even if you do not have an ILTR (indefinite leave to remain). Having said that, different mortgage lenders have different requirements when it comes to getting a mortgage while being on a VISA.

This is why it is important to work with a skilled and experienced mortgage broker in the city or town you want to live in. For example, if you are looking for a property in Harrow, make sure you hire the best mortgage broker Harrow has for you. These licensed professionals will help you find the best deals depending on the VISA you have and the type of property you want to purchase.

Let us now have a look at a few factors that influence you getting a mortgage in the UK while being on VISA.

The VISA type

The type of VISA you hold has a direct impact on the mortgage deals you can receive and the properties you can purchase in the UK. Here are the three major VISAs an individual can hold in the UK:

Spousal VISA

As the name suggests, this is the type of VISA you hold if your spouse is a UK citizen and is above the age of 18. Here, your partner should have settled in the country and have an indefinite leave to remain. You can also opt for this VISA if your spouse has a well-settled status in the UK and belongs to the European Union. This requires them to be living in the UK since before January 1, 2021. Moreover, you can have a spousal VISA if you possess a leave to remain as a refugee or as a person with humanitarian protection.

Tier 1 Working VISA

This is the VISA designed for individuals with distinguished talents, skills, or investments that actively contribute to the UK’s economy. This VISA is further classified into different sub-categories as follows:

  • Exceptional Talent: This subcategory is designed for people possessing exceptional skills in various fields like the arts, sciences, humanities, etc. To obtain their VISAs, these individuals need to get an endorsement from designated endorsing bodies operating in their specific fields.
  • Entrepreneur: This subcategory is created for individuals who wish to take over, establish, and become an active part of a business in the country. They should present a valid business plan for operating in the UK to obtain their VISAs.
  • Investor: Here, VISAs are given to HNI (high-net-worth individuals) who want to make substantial investments in the country.
  • Graduate Entrepreneur: This subcategory is created for international graduates who intend to establish their businesses in the UK after graduation. Here, applicants need to present an endorsement from their respective universities to get their VISAs.

Tier 2 Working VISA

This is the Skilled Worker VISA that allows individuals to stay in the country to perform suitable jobs offered by approved employers by the Home Office. To get these VISAs, individuals need to have a sponsorship certificate from their employers regarding the roles they will play. Moreover, it is important for their jobs to be enlisted as eligible occupations, fulfilling the minimum income requirement.

Validity of your VISA

How long your VISA is valid for also plays an important role in getting a mortgage in the UK. Most mortgage lenders prefer working with clients having at least 12 to 24 months until their VISAs expire. However, underwriters’ discretion can push lenders to make necessary amendments to their criteria.

Your credit history

Like all other cases, your credit history will determine the mortgage you get. If you are on a VISA, mortgage lenders are likely to assess your credit history more strictly. Make sure your credit score is impeccable without a history of defaults and heavy debts.

Mortgage lenders take this aspect very seriously as it helps them check if you will be able to afford the mortgage you are looking for. Keeping your source of revenue on one side, lenders will use your credit history to have a complete idea about your affordability. Most of them prefer their clients to have held a UK current account for at least six months.

The deposit you make

The deposit or downpayment you are ready to make will also influence your chances of getting a mortgage while having a VISA in the UK. Lenders often ask for a larger deposit from clients with VISAs. You may be asked to set aside a deposit as high as 25%. While certain lenders may allow lower rates, paying a bigger deposit will only help you reduce your debt and manage your burden. Many lenders also set a minimum income limit to allow clients to make smaller deposits. Making a joint application where the other individual is a UK resident can also help you get a better deal.

Evidence of confirmed residency

If you are able to provide mortgage lenders with evidence of confirmed residency in the UK, you can get better mortgage deals while having a VISA. For this, the lenders will ask for documents like a copy of your passport, a copy of your Biometric card, your government share code, a utility bill coming in the last three months in your name and a UK address, and your proof of income along with bank statements.

Depending on the type of mortgage you want and the mortgage lender you approach, there may be many more factors that influence the mortgage you get while having a VISA in the UK. Make sure you are assisted by a trusted mortgage broker in the UK to help you navigate every situation and get a deal that best suits your circumstances.

On November 2, 2023