Regardless of whether you are a non-EU or EU citizen, getting a mortgage in the UK as a non-UK citizen is extremely tricky.
It can take a lengthy period of time to figure out all of the important factors at play, and while the Citizens Advice Bureau can definitely help in some instances, government departments are not always the quickest to respond and may leave you even more confused!
This article offers you all of the information you need to know about visa requirements, immigration status, residency status, and many other important factors that influence where you can get a mortgage in the UK.
Not sure if mortgage lenders will work with you as a non-European or a European national? Read on below.
Success Stories of Pre Settled Status Mortgages
Understanding pre-settled and settled status
When you apply to the EU Settlement Scheme, you might expect to be asked to pick whether you want to apply for pre-settled or settled status. The status you are given is based entirely on how long you have lived in the UK. Here in this guide we will discuss about the mortgage with pre settled status in the UK.
Often you are offered settled status if you have lived somewhere in the UK for five years in a row. To get classed as someone who has lived in the UK for five years in a row, you must have spent no less than six months of the last 12 months in the country.
There are a couple of exceptions, such as if you have had to undertake military service abroad or another essential reason such as study, childbirth, or serious injury.
If you are yet to spend five continuous years living in the UK before you apply for a mortgage, you will likely be offered a pre-settled status.
But that isn’t always the case. To be classified as a pre-settled citizen and become eligible for a pre-settled status mortgage, you need to have started living within the UK by 31 December 2020.
The only exceptions to this rule are if you are applying as a family member of Swiss citizens, EU nationals, or EEA citizens who began living in the UK before the cut-off date.
If you are offered pre-settled status, make a note of the date you were awarded this status, as you are legally allowed to live in the UK for five years from that date.
Read about No UK Citizens Advice On Mortgages on our blog.
How to apply for settled or pre-settled status
If you have been living in the UK since before 31 December 2020, you need to provide proof of your residence and identity. For this, you will need:
- A valid passport
- A valid biometric residence permit
- A valid biometric residence card
If you landed in the UK on or before 31 December 2020, you could prove this by showing mortgage lenders your National Insurance number. Your NI number lets an automated check occur on your residence based on things like benefit payments and tax records.
There are several ways you can apply for pre-settled status, such as via the post or online, so be sure to head to the gov.uk website to assess your options.
Why Having a Pre-Settled Status so Important
If applicants are not classed as UK residents, leading banks will only consider new applicants in a few rare instances. That is why ensuring you have a pre-settled status is so important before applying for a mortgage. Don’t forget, ex-pats applying for buy-to-let or residential mortgage applications must have evidence that they have a permanent right to live in the UK.
Some of the criteria that may be considered for an exemption include anyone who is an offshore worker or temporarily overseas, anyone planning to live in the property once it is completed, or anyone who is not going to be the full occupancy of the property.
One high-profile example of this was NatWest, who, as of 1 January 2021, stopped lending to any EU customers that had not received settlement status to live in the UK.
Its new policy is that anyone who came to the UK after 31 December 2020 and therefore no longer falls under the EU Settlement Scheme will need to apply for a visa and follow the new points-based system of immigration.
You can read our blog on pre-settled or settled status for mortgages on our website blog.
Frequently Asked Questions
Can I get a pre-settled mortgage?
Whether or not you can get a pre-settled mortgage will depend on several important factors. The most important factor is where or not you have lived in the UK from earlier than 31 December 2020.
How long do mortgage with pre-settled status offers tend to last?
As with all remortgage and house purchase offers, the standard time frame tends to be 180 days before the offer is rescinded.
Rate switch offers tend to last for 45 days, and additional borrowing offers are normally valid for three months.
Can I get a UK mortgage as an ex-pat?
Whether or not you can get a UK mortgage as an ex-pat depends on several factors. For any buy-to-let or residential applications, many banks often require Swiss nationals, EEA, and EU citizens to offer evidence that they are allowed to reside in the UK before they can apply for new lending.
Evidence can include proof of settled or pre-settled status within the EU Settlement Scheme or other documents like indefinite leave to remain, indefinite leave to enter, or permanent residence.
Can I show my National insurance number to prove my stay duration in uk?
Yes,, you can also show your National Insurance number to prove your stay in the uk.
Can I get a mortgage with pre-settled status?
Yes, you can get a mortgage with pre-settled status, but you need to contact a mortgage broker before starting your mortgage application. You will also need to go through a credit rating check by the mortgage lender.
What are the requirements to get a mortgage in the UK if you’re a non-UK citizen?
The main requirement is that you must have been living in the UK for at least six months prior to applying. You may also need to provide proof of income and savings. If you don’t meet these requirements, then you won’t be able to get a loan.
You should also note that some lenders might want to see proof of a UK address. This means that even though you have already been living in the UK since January 1st, you still need to provide proof of a current UK address.
Do I need to pay tax in the UK?
No, you don’t need to pay tax in order to live in the UK. However, it is possible that you might be liable to pay tax in the future.
If you plan to move back to India after buying a home in the UK, then you will probably need to register for VAT. It is very likely that you will need to register for VAT in the UK if you intend to sell your property.
If you plan to move out of the UK permanently, then you will also need to register for VAT once you return to India.
Can I get a mortgage without indefinite leave to remain status?
Yes, you can get a mortgage without indefinite leave to remain in status. There are many ways to get a mortgage in the UK. You can apply for a personal loan, an unsecured loan, a secured loan, or even a business loan. Some lenders may require you to show proof of income, while others do not. The amount you can borrow depends on several factors such as your credit rating, your employment status, and the type of loan you’re applying for.
Mortgage With Pre-Settled Status: Summary and Key Takeaways
Hopefully, now you have a much better understanding of whether or not you can get a mortgage with pre-settled status.
If you are weighing up purchasing a UK property with pre-settled status, we can offer you a wealth of knowledge and expertise to help you along your journey.
Don’t forget to double-check all of the requirements listed in this article, and when you are ready to enquire further, be sure to get in touch with us.
FAQs – Mortgage With Pre-Settled Status: Everything You Need to KnowAkshay Hooda2022-04-07T10:33:44+00:00