Thanks to the success of the property market in the UK and a number of other factors, mortgages for foreign nationals have soared in popularity with many now wanting to invest in the market here.
There is some truth, too, in the argument that Brexit has made it somewhat easier for a foreign national to get approved for a mortgage, and that investors and foreign national mortgages are coming from much further afield than just Europe. With the government seeking to agree trade deals around the world the UK is seeing much more inward investment from foreign nationals in Japan, for example.
This has meant that lenders and finance companies are now much more willing to offer foreign national mortgages as a product with the demand increasing so substantially over the past few years
What is a foreign national mortgage?
Foreign national mortgages pretty much do what they say on the tin in that they are mortgages for people who reside outside the UK or aren’t a British citizen.
Arranging these types of mortgages for a foreign national can be complex but we have years of experience in arranging this type of finance for a property or a development.
We can help foreign nationals to arrange finance, a mortgage or a re-mortgage for property in the UK and we have a large panel of lenders that we have exclusive relationships with. Our team of experienced brokers will be able to talk you through what finance options you may have available to you whether you’re looking to re-mortgage an existing property, expand your portfolio in the UK or if you’re looking to invest here for the first time.
Can foreign nationals get a mortgage in the UK?
Simply put, yes foreign nationals can get a mortgage in the UK for property and houses, but there are a few things that lenders are likely to ask you for before they can approve an application.
They’ll want to know the location of the property for any mortgage application or for a foreign national mortgage. There are certain areas that are considered less risky than others, but our brokers can talk you through that.
You’ll need a decent sized mortgage deposit, around 25% or more to be able to apply for a foreign national mortgage with most of our panel of lenders, and you’ll need to show where you’re sourcing the money for your mortgage deposit too to satisfy money laundering laws.
They’ll also want to know what your employment status is, and if you work for an organisation or company that’s a multinational with offices across different countries it may make it easier to prove your income as a foreign national for your mortgage application.
Your net worth is also something a mortgage provider may ask about and the more liquid your assets the better it usually makes things, if you have foreign cash or shares, for example, this may make it easier to be approved for a mortgage.
Things to consider when applying for a mortgage for foreign nationals
When looking at a foreign nationals mortgage it’s worth considering how you’re going to meet the criteria of the lender.
- The property itself
The property that you’re considering purchasing needs consideration, as this will inevitably have an effect over whether you’re going to be accepted. Some areas of the UK are considered more credit worthy than others.
- Use an experienced broker such as Hank Zarihs Associates
It’s worth approaching a broker or intermediary to go through the process of your application as applying yourself can be an extremely complex and laborious journey.
- We work with specialised lenders
Traditional lenders will typically ask for quite a lot of information from a foreign national and this can be difficult to obtain, which is why we work with a number of specialist lenders who offer more flexibility when it comes to things like your credit history and your income.
- Saving more – cutting out the middle man
With traditional lenders and mortgage providers they tend to have very stringent background checks, income requirements and tend to charge quite high interest and ask for high deposits too. We’d recommend speaking to one of our broker team that can talk you through what you may be eligible for.
Apply for a expat/overseas mortgage
Ready to apply for an overseas mortgage in the UK? We work with a tried and trusted panel of mortgage lenders who are actively lending. The deals that we can recommend to our clients are updated daily, so you have complete peace of mind that you are receiving details of the best possible mortgage finance products on the market in real-time.
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Are you a foreign national looking to buy property in the UK?
We’re here and ready to talk you through the process of applying for a mortgage. We can help with all aspects of finance and lending from the very beginning of the process through to re-mortgages or potentially other types of eligible finance for you.
Our team of brokers have years of experience in the industry and are able to let you know exactly what documents you’ll need, how much you’ll likely qualify for, what type of properties you might be able to borrow against and what sort of deposit you’ll need. Thanks to our years in the mortgage industry we have a number of exclusive relationships with our panel and can get you the best rates and deals available.
How to get a mortgage for non-UK residents
The application process starts by speaking to one of our brokerage team who can start to understand your mortgage needs. They’ll ask things about where you live, what your financial situation is like, whether you already have a property in mind and what your credit history is like. They’ll be able to understand in greater detail what your income is like and where it comes from and recommend some lenders from our panel that may be able to help you whilst getting some agreements in principle.
Can foreign nationals get a Buy to let mortgage?
A foreign national can get a Buy To Let (BTL) mortgage, but again this tends to be a little more complicated than a citizen applying for and obtaining a mortgage in the UK.
The same principles apply in your application in that the location of the property, your deposit, your track record and your income are all contributing factors. Again, the process of approaching individual lenders for a foreign national can be cumbersome and time consuming so we’d recommend speaking to our team of brokers who can talk you through what might be available to you.
Joint mortgage with non-UK resident
A UK citizen can in some circumstances get a mortgage with a foreign national, however, this will inevitably make the process more complex and the same questions are likely to be asked by the lender.
As a foreign national they’ll want you to show where you’re currently living, where you get your income from and whether you’re intending to live in the property as well as where you’re looking to purchase your house.
It’s actually a little easier as a joint application with a UK citizen than doing a mortgage application on your own as a foreign resident or citizen. If you’re living in the UK and earning your income here that also simplifies matters, however, our team have years of experience and have helped to fund millions in loans across the UK and for lots of different types of lending.
If you’re unsure and want a little more advice about your situation and which lenders may be able to help you out with your mortgage application, then simply get in touch and we can give you some more information.
Can I get a mortgage without indefinite leave to remain?
It’s certainly possible but, again, it’s not straight forward and your immigration status will inevitably affect your application as lenders will want to see that in the event of you leaving the country you’re still able to pay your mortgage and meet your lending obligations.
This situation will likely be affected by your job or where you earn the majority of your income. If your main source of income comes from abroad then it may help as your immigration status is less likely to affect your long term ability to be able to pay your mortgage but, ultimately, this will come down to your individual circumstances.
Because we operate as an intermediary and have a large panel of lenders, we’re able to consider all types of personal circumstances when progressing applications for a mortgage even from foreign nationals. If we need some extra information from you, we can tell you everything you’re likely to need to be approved from a mortgage provider.
This allows you the time to get everything you need together to get some agreements in principle from a number of lenders, rather than needing to approach them all individually which can be very time consuming. We’re then able to show you your options with a number of providers and you can then choose the one that best suits your circumstances.
Because we have a lot of experience we also have great relationships with our finance providers and this means that we won’t submit applications before we know they’re ready and likely to be accepted, this also gives you the confidence that you’re in the best possible position to get the right finance for you.