First-Time Buyer Mortgages for Foreign Nationals

Introduction

Buying your first home in the UK is a huge milestone, but if you are a foreign national the process can feel particularly overwhelming. That’s because the rules are slightly different for you than it is for UK citizens with things like stricter eligibility checks and lender-specific requirements.

This article will talk you through essentials: from eligibility and deposit requirements to government schemes and which lenders are most open to helping first-time buyers like you.

Disclaimer: This article provides general information only and does not constitute mortgage advice. For advice tailored to your circumstances, please speak to a qualified mortgage adviser.

What is a first-time buyer mortgage?

A first-time buyer mortgage is simply a home loan designed for people purchasing their very first property. Lenders often offer special deals, like lower interest rates or cashback incentives, to encourage first-time buyers.

Some of the key features these mortgages often include are:

• Lower deposit thresholds compared to standard residential mortgages.
• Access to government support schemes (if you qualify).
• Specific affordability checks to ensure buyers can manage repayments.

For foreign nationals who are looking to purchase their first property in the UK the principles remain the same, but lenders may ask for additional information like proof of residency, visa type, and credit history checks.

Want a deeper dive into first-time buyer mortgages? Read our full guide here.

Am I eligible for a first-time buyer mortgage as a foreign national in the UK?

Eligibility depends on various factors, but the two main ones are your immigration status and your financial profile.

Immigration status and visas

Visa holders: If you’re on a skilled worker, student, or spousal visa, some lenders will consider your application.

Indefinite Leave to Remain (ILR): Having ILR often makes the process easier, as lenders see it as a sign of long-term stability.

EU/EEA nationals: Since Brexit, EU nationals are generally treated like other foreign nationals and may need to show proof of settled or pre-settled status.

Financial factors

Proof of stable income (ideally in the UK).

Good credit history.

Ability to provide necessary documents (pay slips, bank statements, ID, visa).

First-time buyer requirements for foreign nationals

Here’s a closer look at lenders typically look for when it comes to first-time buyer mortgages for foreign nationals:

1. Minimum time in the UK: Some lenders require you to have lived and worked in the UK for at least 12 months.
2. Employment checks: Full-time employment with a UK employer makes approval easier. Self-employed applicants may face stricter checks.
3. Credit history: Most lenders want to see at least some UK credit history, but if you’re new to the country, specialist lenders can still help.
4. Paperwork: This usually includes proof of ID, visa, employment contract, pay slips, bank statements, and proof of deposit source.

Want a clear checklist of documents lenders usually request? Read this.

5. Fees: In some cases, foreign nationals may face slightly higher arrangement fees or interest rates

How much deposit is required for foreign national first-time buyers?

The deposit you’ll need as a foreign national first-time buyer in the UK will vary depending on your situation:

Standard deposits: Most first-time buyers are expected to put down around 10–25% of the property’s value.

Non-residents: If you’re applying from outside the UK, lenders may ask for more—often between 25–40%.

Loan-to-Value (LTV) ratios: Lenders use LTV to measure risk. The more you can put down upfront, the lower your interest rates are likely to be.

What mortgage options are available to me as a first-time buyer?

Foreign nationals in the UK have access to a range of mortgage products, but the options open to you will depend on your visa status, income, and deposit size.

Here are the common mortgage types:

Fixed-rate mortgages: Your repayments stay the same for 2–5 years, giving you stability and peace of mind.

Tracker mortgages: These follow the Bank of England’s base rate, so your payments can go up or down over time.

Specialist products: Certain lenders focus on helping foreign nationals, even if you have limited UK credit history.

Guarantor mortgages: If you have a family member based in the UK who’s willing to act as a guarantor, this can make your application stronger and open up more options.

Want to learn more about the mortgage options for first-time buyers?

Watch this.

What’s the process of getting a mortgage for a foreign national?

1. Check your eligibility: Consider your visa type, employment status, and how much of a deposit you can put down.
2. Consult a broker: A broker who understands mortgages for foreign nationals can connect you with lenders who understand your circumstances.

If you’re a foreign national buying your first home in the UK, WIS Mortgages can help simplify the process and connect you with the right lenders.

3. Get an Agreement in Principle (AIP): This shows estate agents and sellers that you are a serious buyer and gives you an idea of what you can borrow.
4. Submit full application: Make sure to include all the necessary documentation like ID, visa, pay slips, bank statements, and proof of deposit.
5. Mortgage offer and completion: purchase. Once approved, the lender releases the funds, and you can finalise your purchase.

Best lenders for foreign national first-time buyers

Not all banks are equally open to lending to foreign nationals. Some of the best lenders for foreign nationals include specialist mortgage providers who:

Accept limited UK credit history.

Offer competitive foreign national first-time buyer mortgage interest rates if you have a strong deposit.

Provide flexible underwriting for those with complex visa arrangements.

High-street banks such as Halifax, Barclays or HSBC may consider applications but often prefer applicants with longer UK residency or stronger financial profiles.

Practical tips/recommendations

1. Build your credit history
   If you have just moved to the UK, start by opening a local bank account and, if eligible, registering on the electoral roll. These small steps can go a long way in helping lenders see you as reliable, even with limited UK credit history.
2. Save for a larger deposit
   The bigger your deposit, the better the mortgage rates you’ll usually be offered as a foreign national. It also shows lenders you’re financially committed.
3. Use a broker
   A broker who specialises in mortgages for foreign nationals can connect you with lenders who understand your circumstances (saving you time and stress).
4. Gather documents early
   Having your ID, visa, pay slips, bank statements, and proof of deposit source prepared in advance will make the application process much smoother and help avoid delays.
5. Consider future visa renewals
   If your visa is close to expiring, some lenders may hesitate to approve you for a mortgage. Applying early or showing plans for renewal can help reassure them of your long-term stability as a foreign national.

FAQs

Q: Can foreign nationals in the UK get a first-time buyer mortgage?
Yes. It’s definitely possible, though the requirements can be stricter. Your chances improve if you have a larger deposit or a stable visa.

Q: What if I have bad credit?
You can still get a mortgage through specialist lenders. Just keep in mind that the interest rates may be higher, and your choice of lenders more limited.

Want step-by-step advice on getting a mortgage with bad credit? Read this.

Q: Do I need a guarantor?
Not always. But if you have a UK-based family member who can act as a guarantor, it could strengthen your application as a foreign national.

Want to learn more about guarantor mortgages? Read this.

Q: What if I have just arrived in the UK?
First-time buyer mortgage when newly arrived UK is challenging but achievable through specialist lenders and larger deposits.

Q: How do interest rates compare?
Foreign nationals may face slightly higher interest rates than UK citizens, as lenders see it as a higher risk. That being said, a strong deposit and stable income can help you secure better deals.

Important FCA Warning

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.