UK Mortgage for Foreign Nationals & Visa Applicants | Fees, Deposits & Best Mortgage Options

What types of mortgages are available for foreign nationals?

There are two common types of mortgages in the UK: fixed-rate mortgages and tracker mortgages.

A fixed-rate mortgage keeps your monthly repayment the same for a set period, usually two or five years. This provides certainty and makes budgeting easier.

A tracker mortgage, on the other hand, follows the Bank of England’s base rate. If the base rate rises, your monthly payments will go up. If it falls, your payments will go down. This can work in your favour when rates are low but carries more risk when they increase.

The right choice depends on your personal circumstances. There is no universal answer, which is why professional advice is always recommended.

What fees are typically involved in getting a mortgage?

There are several costs you should expect when applying for a mortgage in the UK:

• Product Fee: Usually around £999, though some lenders charge up to £1,499 depending on the deal.
• Valuation Fee: Some banks offer free valuations, but this depends on the product.
• Solicitor Fees: Payable to cover the legal side of the property transaction.
• Stamp Duty: A government tax on property purchases, depending on the property price.
• Broker Fees: Some brokers charge up to £1,000 for their services, but others—including the speaker’s firm—do not charge any fees.

Do visa applicants need to approach a bank directly to get a mortgage?

No, this is a misconception. Many people assume they need to go directly to a bank, but the UK system works differently. Not all banks are willing to lend to people on visas.

This is why working with a mortgage broker is usually better. A broker will assess your situation and guide you toward the lenders most likely to approve your application.

Are there specific mortgage products for skilled worker visa applicants?

No. Skilled worker visa holders are not restricted to special products. They have access to the same mortgage products as British nationals and other visa holders. There is no discrimination based on visa type.

Can I take out a loan to fund my mortgage deposit?

This is generally not a good idea. A loan is a financial commitment, which reduces the amount you are able to borrow for your mortgage. Additionally, many banks do not allow deposit funds to come from borrowed money.

Taking a loan will also create a credit search on your record, which could negatively affect your mortgage application. Always consult with a broker or adviser before making this decision.

Can I use foreign currency savings from my overseas account as a deposit?

Yes, but the funds must be converted into sterling (GBP) before they can be used as a deposit. You can either convert the money before transferring it to the UK or transfer it first and then convert it here.

The important point is that your deposit must be in pounds at the time of your mortgage application, as lenders only accept sterling.