Mortgages For Foreign Nationals | How We Can Help You Get A Mortgage In The UK

Hi, welcome back to our channel! Today we’re going to be talking about first-time buyers, specifically for foreign nationals.

If you’re a foreign national, getting your first property in the UK isn’t as straightforward as it is for regular first-time buyers. Today’s video will cover the tips you need to successfully navigate this process.

Hello, my name is Gemma, and here at WIS, we talk about money, mortgages, and positive money mindset. If this interests you, subscribe to our channel and hit the thumbs up—it really helps our YouTube algorithm and ensures you won’t miss any videos.

On today’s episode of Let’s Talk Money and Mortgages, we have Ifty joining us. For those who don’t know, Ifty is a trained accountant and mortgage advisor with over 10 years of experience and is one of the founding directors here at WIS.

Q1: Why is it difficult for foreign nationals to get a mortgage in the UK?

Ifty:

There are three main issues foreign nationals face:

Visa restrictions:

• Visas have an expiration date, usually 2, 3, or 5 years.
• Banks worry about the risk of the visa expiring and whether the borrower will have to leave the UK before repaying the mortgage.

Credit history:

• Foreign nationals often have no UK credit history.
• Even if your credit history abroad is excellent, lenders require a UK-based credit record, which takes time to build.

Deposit requirements:

• Many lenders ask for a 25% deposit from foreign nationals.
• Some lenders may make exceptions, but the majority either require a large deposit or don’t deal with foreign nationals at all.

Q2: Can foreign nationals get a mortgage with a smaller deposit?

Ifty:

Yes, there is some good news. Some lenders, including a few high street banks, may accept as little as a 10% deposit.

Conditions may apply:

• One lender requires you to have lived in the UK for 2 years and have a decent credit history.
• Another lender may accept a joint income of £100,000 even if you haven’t lived in the UK for long.
• Some lenders may require 6 months to 1 year of UK residency.

So, there are ways around it, though conditions vary. Most people fall into one of these buckets and can make it work.

Q3: How long do foreign nationals need to be in the UK before applying?

Ifty:

It varies by lender: some accept 6 months, others may require 2 years.

The reason is that building a UK credit history takes time.

Tip: Start planning from day one. Register on the electoral roll, get a UK bank account, and start building credit immediately.

Q4: How do lenders view visa issues?

Ifty:

Lenders usually want at least 6 months left on your visa.

In some cases, a letter from your employer confirming your visa extension can help.

If your visa situation is complex, it’s best to speak to an advisor before applying.

Gemma:

Don’t run multiple decisions in principle (DIPs) online.

This can negatively affect your credit rating if applications are rejected.

Always consult a broker or advisor first.

Q5: How can foreign nationals improve their credit score in the UK?

Ifty:

Register on the electoral roll from day one.

Start small with credit cards:

• Use a credit-building card if you’re new to the UK.
• Pay the balance in full to avoid interest.

Pay all bills on time, including utilities.

Set up direct debits: automatic payments show reliability.

Maintain stability in addresses: avoid frequent moves.

Landline number: having one can slightly help lenders.

Update your addresses everywhere to show consistency.

Tip: Monitor your credit report regularly. Many agencies offer a free trial for a month—use it to check your credit score and get guidance.

Q6: What is the Mortgage Passport Service for foreign nationals?

Ifty:

This is a guidance service, not a mortgage product.

Helps foreign nationals:

• Monitor credit scores
• Build up deposits
• Track potential mortgage schemes and interest rates

The service prepares you to apply for a mortgage as soon as possible, though the mortgage itself will come from banks.

Q7: Any final advice for foreign nationals?

Ifty:

The UK is a great place to buy a house if you plan to live here long-term.

Plan early, follow guidance, and take the right steps from day one.

With the right planning, most foreign nationals can successfully purchase their first property.

Gemma:

These points may not apply to everyone.

Always consult a broker or advisor for personal guidance.

If you don’t have a broker, our WIS contact details are below.

Reminder: A mortgage is secured against your home or property and may be repossessed if repayments are not maintained.

Closing

Thank you for joining us today! We’ll be back next week with another episode of Let’s Talk Money and Mortgages.

Have a great day, stay safe, and see you again soon!