UK Visa Changes 2026: What the Earned Settlement System Could Mean for Mortgage Applicants

The UK government has proposed a major reform to the immigration system known as Earned Settlement.

If implemented, the changes could alter the traditional pathway to Indefinite Leave to Remain (ILR) by extending the standard settlement timeline for many migrants from five years to ten years.

For professionals currently living and working in the UK on visas, particularly those planning to buy property, this raises an important question:

Could these immigration changes affect how lenders assess mortgage applications in the future?

While immigration rules and mortgage lending policies operate independently, long-term residency status is often one of the factors lenders consider when assessing financial stability.

This is particularly relevant for individuals currently living in the UK under the Skilled Worker visa route.

(You may wish to read our detailed guide on mortgages for Skilled Worker visa holders here. https://wismortgages.co.uk/first-time-buyer-mortgages-for-foreign-nationals/)

TLDR

• The UK government has proposed an Earned Settlement immigration system
• The standard ILR pathway may increase from 5 years to 10 years
• Mortgage lenders often prefer applicants with Indefinite Leave to Remain
• Many lenders still offer mortgages to Skilled Worker visa holders
• Visa applicants may need stronger supporting factors such as
  • larger deposits
  • stable employment
  • strong UK credit history
• If settlement timelines increase, lenders may review risk models in the future
• Understanding mortgage options earlier may help buyers plan effectively

Quick Answer

Can Skilled Worker visa holders get a mortgage in the UK?

Yes. Many UK lenders offer mortgages to applicants on Skilled Worker visas, particularly when they have stable employment, strong income levels, and sufficient deposit funds. Each lender has its own criteria and may consider factors such as visa duration, employment stability, and UK credit history.

What Is the Earned Settlement System?

The Earned Settlement model, outlined in a UK Government White Paper published in May 2025, proposes moving away from automatic settlement pathways.

Currently, many visa holders become eligible for Indefinite Leave to Remain after five years of continuous residence.

Under the new proposal, settlement would instead be based on contribution and integration into the UK.

The consultation process closed in February 2026, and the government has indicated that implementation could begin from April 2026.

Readers can refer to the official documentation available on GOV.UK and House of Commons Library briefings for the most up-to-date information.

Applicants would be evaluated across four key pillars.

Under this model, time spent in the UK alone may no longer automatically lead to settlement.

Proposed Settlement Timelines

One of the most significant proposed changes is the extension of the baseline settlement pathway.

Some visa routes are expected to remain unchanged, including:

• partners of British citizens
• Hong Kong BN(O) visa holders
• individuals under the EU Settlement Scheme

Visual Guide: Current vs Proposed Settlement Path

Why Immigration Status Matters When Applying for a Mortgage

Mortgage lenders typically provide loans lasting 25 to 35 years, so they assess whether borrowers are likely to remain in the UK long term.

Applicants with Indefinite Leave to Remain are often considered lower risk because their residency status is permanent.

However, the UK mortgage market has evolved in recent years, and several lenders now offer products for applicants on work visas.

When reviewing applications from visa holders, lenders may consider:

Depending on the lender, visa holders may require deposits ranging from 5% to 25%.

Look at our latest video on this :

Mortgages for Skilled Worker Visa Holders

The Skilled Worker visa is one of the most common immigration routes for professionals entering the UK workforce.

Many individuals working in sectors such as:

• healthcare
• technology
• engineering
• finance
• education

enter the UK through this visa pathway.

Over the years, lenders have become increasingly comfortable supporting mortgage applications from Skilled Worker visa holders, particularly when applicants demonstrate:

• stable employment with recognised employers
• strong income levels
• clear visa validity
• sufficient deposit funds

As a result, many professionals working in the UK under Skilled Worker visas have successfully purchased property.

Could the New Visa Rules Influence Mortgage Lending?

If the proposed immigration reforms are introduced and the standard settlement pathway extends to ten years, more individuals may remain on work visas for longer than previously expected.

This could potentially lead to:

• a larger number of mortgage applicants without ILR
• lenders reviewing how they assess long-term visa stability
• possible adjustments to lending criteria over time

It is important to note that mortgage rules are determined by lenders and regulators rather than immigration policy, and there has been no confirmation that mortgage criteria will change as a direct result of these proposals.

However, immigration stability is one of several factors lenders may consider when assessing long-term lending risk.

Helping Visa Holders Across London, West Malling and the South East

At WIS Mortgages, we regularly support professionals living in the UK under the Skilled Worker visa route.

Many of our clients are based in areas such as:

• London
• West Malling
• Reading
• Milton Keynes
• Borehamwood
• Birmingham

Understanding which lenders are comfortable supporting visa applicants can make a significant difference when exploring mortgage options.

For professionals relocating to the UK or planning to purchase their first property, early guidance can help clarify what lenders may require.

Where WIS Mortgages Can Help You

Key Takeaway

The proposed Earned Settlement immigration reform could represent one of the most significant changes to the UK visa system in recent years.

If settlement timelines extend from five years to ten years, many professionals may remain on temporary visas for longer than originally expected.

While immigration policy does not directly determine mortgage lending rules, these changes could influence how lenders assess long-term residency and financial stability.

For Skilled Worker visa holders considering buying property in the UK, staying informed about both immigration developments and mortgage options can help support better financial planning.

Frequently Asked Questions

Can Skilled Worker visa holders buy property in the UK?

Yes. Skilled Worker visa holders can buy property in the UK, and several lenders offer mortgage products for applicants on work visas.

Do you need Indefinite Leave to Remain to get a mortgage?

No. ILR is not always required. Some lenders offer mortgages to applicants without permanent residency, although criteria may differ.

How much deposit might visa holders need?

Deposits vary depending on the lender and the applicant’s circumstances. Some lenders offer mortgages from 5% deposit, while others may require 10–25%.

Does the length of the visa matter when applying?

Yes. Lenders usually prefer applicants to have sufficient time remaining on their visa when applying.

Will the Earned Settlement rules affect mortgages?

The proposed immigration reforms relate to residency policy and do not directly change mortgage regulations. However, lenders may consider how long applicants are likely to remain in the UK.

Author

Ifthikar Mohamed
Director – WIS Mortgages
Mortgage adviser supporting homebuyers across the UK, including professionals working under Skilled Worker visas.

Important Disclaimer

This article is provided for general information purposes only and does not constitute mortgage advice or financial advice. Mortgage approval depends on individual circumstances and lender criteria. Immigration policies and mortgage rules may change over time.

Your home may be repossessed if you do not keep up repayments on your mortgage.