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Help to buy scheme for foreign nationals

March 18, 2021
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As it stands, only residents with indefinite leave to remain in the UK may take advantage of the Government Help to Buy and Buy New schemes. This excludes many non-UK and EU nationals, even if they have permission to live and work in the UK.

In our commitment to supporting the entire UK community, we are always on the lookout for ways to help niche mortgage applicants to make the most of schemes. In this blog, we will look at some of the rules and regulations that make up the help to buy scheme and how you can get on the property ladder as a foreign national.

Mortgage applications for visa holders

If you are a visa holder and are looking to purchase property in the UK, we can help. We have experience matching first-time buyers, buy to let landlords, high net worth individuals and remortgage applicants with the right lender. While some lenders might outright reject international applicants, we can help you find a lender that would be more likely to consider your application.

Mortgages for foreign nationals are often considered riskier as the lender might struggle to determine the source of the funds or the applicant may lose their right to live in the UK. Lenders will therefore have strict rules for visa applicants to protect themselves from riskier loans.

Applicants on a visa can expect to undergo much more thorough checks on income, visa status and the source of the deposit. This helps to cover lenders and ensure they fulfil their duties to prevent money laundering.

Another common problem that applicants will face is proving that they have been in the UK for long enough. Banks will often use the age of your bank account to determine how long you have been living in the UK, but some international residents will wait a while before opening their first accounts.

Larger banking institutions such as HSBC might appeal to international applicants due to their willingness to work with applicants in other aspects of banking. However, when it comes to mortgages, it’s not uncommon for HSBC to agree to a mortgage in principle only to retract their decision further down the line. This can be very disappointing for applicants who may lose out on non-refundable deposits and see their dream home go back on the market.

If you are thinking about securing a mortgage as an international resident, we can help advise you on the next steps. Often, the size of your deposit will determine the rest of the mortgage requirements.

10% deposit Any country of origin 1 year of UK taxes

2 years left on visa

15% deposit Any country of origin 3.5 years of UK taxes

No minimum time left on visa

25% deposit Any country of origin No minimum UK taxes

No minimum time left on visa

Securing a mortgage as a foreign national is a very complex procedure and we recommend seeking expert advice. Get in touch with Niche Mortgage Info today to find out more about our UK visa mortgage application support.

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Niche Mortgage Info is a guidance website and introducer and is not regulated by the FCA. All of the advisers we partner with work only for firms who are authorised and regulated by the FCA and specialise in a number of different fields. They will offer any advice specific to you and your needs. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice.

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