Guide to getting a mortgage as a foreign national

Yes, it’s possible to get a UK mortgage as a foreign national, whether you’re looking for a residential mortgage, buy-to-let mortgage, or commercial mortgage.

You won’t need to apply for a ‘foreign national mortgage’. Instead, you just need to make sure you apply for a mortgage with criteria that accept non-UK nationals. There are thousands of mortgages out there, and hundreds of lenders, which can make it difficult to know what to apply for. Working with an expert mortgage adviser (like us) can help you find which mortgage deals which accept non-UK nationals.

Like other borrowers, if you’re buying a residential property with a repayment mortgage, you’ll usually need to pay a deposit, pass lenders’ affordability criteria, and repay the capital and interest over the course of the mortgage term. 
You also might be offered a higher interest rate than UK residents, since most lenders see overseas borrowers as higher risk. As with any other mortgage, you may be able to boost your chances of approval and access more competitive interest rates by having a good credit rating, reliable income and a deposit equivalent to 20% of the property price or more.

Who’s eligible for a foreign national mortgage?

Your ability to get a mortgage as a foreign national will depend on a number of factors, which can differ depending on the mortgage deal you apply for. Your time in the UK, residency status, where you live and whether you’re employed in the UK can all come into play. Some mortgages will also have minimum income or deposit requirements, and may also want you to have a certain amount of time left on your visa, or a certain type of job.

You’ll usually need to have lived in the UK for at least three years before you can apply for a UK mortgage - although one of the schemes we advise on here at Tembo only requires you to have lived in the UK for a year! This makes it easier for lenders to assess your address history, credit history and employment status. 

If you’re not a UK resident but you have permanent residency or indefinite leave to remain, you’ll usually be treated as a British national if you work in the UK or you’re married to a UK citizen and have a corresponding visa.

If you’re an EU citizen, you may have to jump through more hoops than you would have had to do pre-Brexit, but it’s still possible to get a mortgage in the UK.

If you’re not a UK citizen and you don’t have permanent residency, it’s still possible to get a mortgage in the UK, but lenders may assess your application based on stricter criteria than they would in other circumstances, which can make it more difficult to get the mortgage you need.

Which lenders offer mortgages for foreign nationals?

Major high street lenders like Barclays, NatWest, and HSBC do provide loans to foreign nationals, but each has its own set of criteria. In general, some lenders may want you to have been in the UK for at least two years to be accepted with a 5% deposit saved. But this time can go down to just 1 year if you have a 10% deposit saved, while some may not need a minimum time in the UK at all, but you may have to meet a minimum income requirement. It all depends on the mortgage you apply for and its specific criteria.

For instance, HSBC requires you to have lived in the UK for a minimum of 12 months, or one applicant must have a minimum income of £75,000 (excluding variable income) or a joint minimum income of £100,000 (excluding variable income). You must also have an LTV of 85% (or lower). You must also have an acceptable visa type, and your deposit is funded from your own funds - gifts from other people, such as family members, are not accepted, unless they are in addition to the minimum 15% deposit you must put down.

Barclays’ criteria is much simpler, requiring at least £100,000 (or the equivalent in another currency) in savings or investments, while Halifax only offers mortgages to individuals who have been in the country for more than five years.

To avoid getting rejected, speak to a mortgage broker like Tembo who specialises in alternative ways to get on the ladder. We’ll know which lenders are most likely to approve your application and which are best avoided. Get started here.

What questions will I need to answer to get a mortgage?

When you apply for a UK mortgage, you’ll need to answer a series of questions about your income, expenses, savings and family situation, just as you would if you were a British passport holder. You’ll usually face additional questions relating to your status as a foreign national. These might include: 

• What type of visa do you have? The type of visa you have can make a big difference to your ability to get a mortgage as a foreign national. If you have a student visa, for example, you may be eligible for fewer mortgages than you would if you had a working visa as you may not have a reliable income, and may need to leave the country once you’ve completed your studies. 
• How long is left on the visa? The amount of time you have left on your visa can make or break a mortgage application. The further away the expiration date, the better your chances of getting a mortgage. 
• How long have you been in the UK for? Many lenders will only consider your mortgage application if you’ve been in the UK for at least a year, though some lenders are stricter than this, setting a five-year minimum for foreign nationals. 
• Where will the money for repayments come from? You’ll usually find it easier to get a mortgage if you make money through UK employment or self-employment. This doesn’t mean you won’t be eligible for a mortgage if you live overseas and make money from foreign income, but lenders will take where you live and work into account when assessing your application. Your sources of income can even affect your interest rate, making it even more important to compare mortgages from across the market with the help of a mortgage broker. 

Learn more: What can stop you from getting a mortgage?

How to get a mortgage as a foreign national

Getting a mortgage as a foreign national may sound complicated, but it doesn’t have to be. Here’s how to get started: 

1. Speak to a mortgage broker who specialises in foreign national applications or alternative ways to get on the ladder. They’ll be able to work out fairly quickly whether you’re eligible for a mortgage, and what you need to do to improve your chances of being accepted.
2. Boost your chances of approval. If your mortgage broker believes you’ll struggle to secure a mortgage in the UK, they may have advice to help you bridge the gap between where you are now and your future goals. 

You could make some of these changes without speaking to a broker first, but this might not even be necessary! By working with a mortgage expert, you’ll get specialist advice tailored to you. You’ll know exactly where you stand, while saving time, stress and money in the process.