If you’re living in the UK as a foreign national, you may feel like you’re wasting money renting. So, you may want to buy somewhere instead. Applying for a mortgage as a foreign national can feel daunting though. There’s a variety of products on offer. However, the criteria you have to meet may put you off.
The share of employees who are adult non-UK citizens has increased over the last decade. By December 2024 they accounted for 19% of total employees, based on national insurance number registrations. Or, to look at it another way, this equates to 5.75 million people.
As a result, some lenders have updated their criteria. This is to make mortgages more accessible to foreign nationals. We’ve raised our Loan to Value (LTV) to 90% (previously 80%) for foreign nationals based in the UK.
Mortgages for non British citizens
If you’ve moved to the UK from overseas and want to buy a home, you’ll need a mortgage that’s suitable for foreign nationals.
The language used to describe financial products can be confusing sometimes. For instance, you may be wondering what the difference between a foreign national and an expat is.
In relation to UK mortgages, we consider foreign nationals as someone who:
- Doesn’t have British or Irish nationality
- Lives in England or Wales
- Is buying a property in either country.
In contrast, an expat:
- Has British or Irish nationality
- Lives abroad
- Wants to buy a property in England or Wales.
Mortgages for foreign nationals
It’s possible for someone with a Skilled Worker Visa to apply to become a permanent resident once their visa expires. This is known as having indefinite leave to remain. At Suffolk Building Society, if you have indefinite leave to remain, our standard lending criteria apply.
If you don’t have indefinite leave to remain, you’ll need to meet some additional requirements. Each lender will have their own mortgage criteria for foreign nationals. To apply for a mortgage with Suffolk Building Society, you will need to:
- Have a minimum deposit of 10% (which cannot be a gifted deposit).
- Have been a resident and working in the UK for at least 12 months.
- Have a valid UK work permit. For example, a Skilled Worker Visa (also known as a Tier 2 Visa), Global Talent Visa, or Health and Care Worker Visa. It must have at least 12 months remaining.
- Have a UK Current Account.
- Work in one of the following sectors: education, healthcare, finance and banking, IT, legal, science research and development. Or in a professional role in marketing, or the energy or construction industries.
You’ll also have to meet our standard identity and credit checks, and affordability criteria.
Having the relevant documents to support your application before you apply can save time later. Make sure you can supply your lender with:
- Proof of ID – including your name, date of birth and a photo, such as a passport.
- Proof of address – such as utility bills from the last three months, if they include your name and address. A council tax letter for the current year could also work.
- Proof of your income – payslips from the past three months are usually sufficient.
- Details of your monthly expenses – plus any outstanding loans, such as credit cards. Bank statements and utility bills will often be required for this.
- Source of funds – these must be verified by law. Some of the documents we’ve already mentioned will support this. Bank statements, payslips, tax returns, or documents confirming a property sale may all help, although the supporting items required will vary by lender
Foreign nationals mortgage UK
Although mortgage criteria for foreign nationals vary compared to those for British citizens, it’s still worth considering. This could be for a mortgage in one name, a joint mortgage for foreign nationals only, or a joint mortgage for a foreign national and a British citizen. Foreign nationals can apply for buy to let mortgages as well.
Buying property in the UK won’t affect your residency status though. This is because residency status is governed by a separate legal framework.
Lenders will have different criteria for assessing an application for a sole or joint mortgage for foreign nationals only, compared to a mortgage with a combination of applicant types. They’ll want to ensure you have a solid financial record and credit history in the UK. This will enable them to assess your ability to make your repayments.
Whether you’re a British Citizen or a foreign national, the mortgages available to you may be affected by whether your earnings are all in pounds sterling or another currency. If you have overseas earnings that you’d like to factor into your application, you may need to take some extra steps. These will vary by lender.
Aside from criteria variations, applying for a mortgage as a foreign national is similar to the process that UK residents go through.
It’s a legal requirement for anyone buying a property in the UK to instruct a conveyancing solicitor. They’ll have the expertise needed to transfer the legal title of a property at the appropriate time.
When you apply for your mortgage, your lender will ask you to provide the information listed above. This will allow them to assess your application accurately.
As part of the mortgage application process, your lender will carry out a valuation of the property. The valuation, or a Level 1 Valuation Report as it’s formally known, is a brief inspection that’s carried out for the mortgage lender’s benefit.
You may also wish to have a survey carried out. A survey evaluates the condition of the property prior to a buyer committing to the purchase.
Once your solicitor has completed their work, you’ll exchange written contracts with the seller and pay a deposit. The property purchase will then typically complete within the next two weeks.
Depending on the purchase price of the property, you may also have to pay Stamp Duty Land Tax (SDLT). SDLT is paid to the UK government on completion of a property purchase when the value reaches a certain threshold. Your solicitor will advise you if this is relevant to your property. If it is, they’ll tell you how much you need to pay. Foreign nationals also pay a 2% surcharge on SDLT if it’s applicable.
When the sale reaches the point of completion you’ll pay the balance of the purchase price to the seller. Once this happens, you’ll receive the keys to your property and will become the legal owner.
The overall process of purchasing a property typically takes 8-12 weeks in the UK. However, it may take longer and can vary due to multiple factors, including financing and property chains.
If you’re thinking of buying a property, take a look at our mortgage finder to see our full range of products. Or, if you have indefinite right to reside in the UK, you can complete our Decision in Principle online. It takes around 10 minutes, and we’ll get back to you within 2 working days with an idea of whether we can help you. If you don’t have indefinite right to reside, contact us so we can discuss your options, including how we may be able to assist you.
