Can I Buy with 5 % Deposit on a Visa?

Buying your own home in the UK is a huge achievement that many people aspire to. However, for foreign nationals in the UK who are here on a visa, that dream might seem out of reach. Our team at WIS Mortgages help people in this situation regularly, with one of the most common questions being, ‘Can I buy a property with just a 5 % deposit if I’m on a visa?’

The answer to this question is yes, it is possible. However, it will depend on your visa type, credit history, income structure and financial health. In this article, we’ll explain the process of getting a 5 % deposit mortgage while living in the UK on a visa and how our team at WIS Mortgages can help.

Key Takeaways

• Visa holders can buy a property in the UK with a 5 % deposit, but lender choice is more limited compared with UK citizens.
• Visa type matters. Skilled Worker, Health & Care Worker, Spouse/Family Visas and EU Settled/Pre-Settled Status applicants have the best chances with a 5 % deposit.
• You will need a clean UK credit history, as lenders cannot use overseas credit files and require evidence of responsible UK borrowing.
• A minimum of 6 to 12 months of UK residency is often required, although some lenders are more flexible.
• Lenders also look at how much time is left on your visa, with most requiring at least 6 months, though some prefer 1 to 2 years.
• Working with a specialist mortgage broker such as WIS Mortgages is highly beneficial, helping match you with lenders that accept your visa type and deposit size.

Do UK Lenders Accept Visa Holders with a 5 % Deposit?

Let’s kick things off with the basics. Mortgages for foreign nationals are available in the UK, but with caveats. Some UK lenders will accept 5 % deposits from visa holders looking for a mortgage, but it isn’t a guarantee. In this situation, we can break the UK mortgage market into three general categories.

High-Street Lenders

Some high-street banks will accept a 5 % deposit if you are here on the right visa. These include:

• A Skilled Worker visa
• A Family or Spouse visa
• Settled or Pre-Settled Status
• A Health & Care Worker visa

These applicants are seen as lower risk because they have stable employment or a strong connection to the UK.

Mid-Tier and Specialist Lenders

Some lenders, including specialist lenders, may accept a 5 % deposit for visa holders, provided they meet certain criteria. This typically includes:

• 12+ months UK residency
• A clean UK credit history
• Strong employment evidence
• Proven track record of income stability

Specialist foreign-national lenders

Some lenders specialise in foreign nationals and will consider 5 % deposits, but rates may be higher due to increased risk. We work with a large network of lenders at WIS Mortgages. We have helped our clients work with foreign-national lenders to secure a mortgage with 5 % deposit. While we have successfully supported some clients in similar circumstances, eligibility and approval remain subject to lender criteria and cannot be guaranteed.

The key point to all of this is that visa holders can buy with a 5 % deposit. However, you must meet more conditions than UK citizens. 5 % deposit mortgages typically involve stricter affordability checks and may carry higher interest rates, particularly for applicants with limited UK credit history

Does Your Visa Type Matter for a 5 % Deposit?

If a mortgage applicant is living in the UK on a visa, then the type of visa is usually the biggest deciding factor for lenders. This means that the visa type has a huge impact on your ability to secure a mortgage in the UK. To help you understand your position with lenders, we’ve provided a general guide below to show how different visa types are treated for 5 % mortgages:

How Long Must You Have Been in the UK for a 95 % Mortgage?

95 % mortgages are available for individuals staying in the UK on some visa types, but lenders are more strict in terms of eligibility. They will typically want you to still have at least six months of residency left on your visa. Ideally, you’ll also have at least three months of employment with your current employer, too.

With that said, some lenders are stricter than others. One lender might ask for six months of UK residency, while others will want 12 months. Similarly, some lenders might need at least 2 years of UK financial history for credit scoring.

All of this means that it really helps to have professional mortgage advice in your corner. At WIS Mortgages, we can help you identify different lenders to find the one that offers you the most favourable arrangement.

Looking to compare different mortgage products? Then our free mortgage comparison calculator allows you to do just that with a few clicks.

What are the Credit History Requirements for 5 % Deposit Mortgages?

If you want to buy with a 5 % deposit on a visa, you need a clean UK credit file. This is because lenders view visa holders as a higher risk. Moreover, a 5 % deposit is quite small, which reduces the lender’s overall security. A limited credit history in the UK can make this problem worse.

So, what do lenders want to see? They want:

• No missed payments
• No defaults or CCJs
• Stable credit usage
• A trackable financial footprint in the UK

Even if you can’t provide lenders with all of this, there are things you can do to help your cause. There are various ways to build up your UK credit file quickly and show lenders exactly what they want to see. So, consider:

• Opening a UK bank account
• Get a UK mobile contract
• Use a credit card and pay it off monthly
• Keep address information consistent
• Register for Electoral Register

How Does Employment and Income Affect my Application?

Visa applicants with a small deposit must show income stability. This means that lenders will want to see a permanent employment contract, 6 months of payslips and regular income going into your UK bank account.

If you’re self-employed, things are a little different. Lenders will want to see a few years of UK tax returns, as well as your SA302s. You should also be prepared to provide any Tax Year Overviews and Accountant-prepared accounts.

Case Study: Helping a Foreign National Secure a Mortgage

Our team at WIS Mortgages regularly work with foreign nationals looking to secure a mortgage. In one case, we were working with a foreign national who had been living in the UK for a little under three years. He was looking to get a mortgage but only had three months left on his current visa, which caused problems with lenders, as most require a minimum of six. On top of this, he had a limited credit history in the UK and his deposit wasn’t yet at the level required.

So, we started by strengthening his credit profile with simple steps like registering him on the UK electoral roll and improving his overall financial health. At the same time, we worked with him to build his deposit through better budgeting and saving plans.

Although most lenders were unhappy with the short visa duration, we found one who was willing to consider our client’s situation. His nearly three years of UK residency helped a lot here. This, coupled with his enhanced credit score and stronger deposit, enabled us to secure the mortgage he needed.

Outcomes like this are rare and depend on specific individual circumstances. Most lenders would not accept a short visa term, and results may vary.

Frequently Asked Questions

Q. Can visa holders buy a house in the UK with a 5 % deposit?

A. Yes, some lenders accept visa applicants with a 5 % deposit. Your visa type matters, though, with lenders preferring those on Skilled Worker, Health & Care Worker and Family visas. However, some lenders may require a larger deposit depending on risk.

Q. How long do I need to live in the UK before applying for a mortgage with a 5 % deposit?

A. Most lenders prefer at least 6 to 12 months of UK residency. Others accept applicants sooner if credit history and income stability are strong.

Q. Do I need a UK credit history to get a mortgage on a visa?

A. Yes. UK lenders cannot use foreign credit files, so you must build UK credit by opening accounts, using a credit card responsibly and paying bills on time.

Q. How much remaining time must be left on my visa?

A. Most lenders require at least 6 months remaining, but some prefer 1 to 2 years. Renewing your visa before applying can improve approval chances.

Q. Should I use a mortgage broker if I’m buying with a 5 % deposit on a visa?

A. Definitely. A specialist broker can identify lenders who accept your visa type, maximise the income used in affordability, and help you pass strict checks on deposit and residency.

Let WIS Mortgages Make Your Mortgage Journey Easier

So, can you buy with a 5 % deposit while on a visa? Yes, but not with every lender, and only if your financial profile is strong. Visa type, credit history, employment stability, deposit traceability and remaining visa length all play a crucial role.

With the right preparation and the support of a specialist mortgage broker, many visa holders successfully buy with just a 5 % deposit and take their first step onto the UK property ladder.

If you would like support with securing a 5 % deposit while on a visa, then our team at WIS Mortgages is here to help. Please contact us today to discuss your needs with us.

Important FCA Warning

This article is a financial promotion approved by WIS Contractor Mortgages Ltd, authorised and regulated by the Financial Conduct Authority.

Calculations are estimates and do not constitute an offer. Affordability assessments vary by lender.

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. Written by the mortgage experts at WIS Mortgages, specialists in complex income and affordability assessments.

WIS Mortgages is a trading name of WIS Contractor Mortgages Limited, which is authorised and regulated by the Financial Conduct Authority. FCA number: 824411.

This article is for information purposes and does not constitute personal mortgage advice. You should speak to a qualified mortgage adviser to assess your individual circumstances.