How to get a mortgage with a tier 2 visa or skilled worker visa?
Tier 2 visas allow skilled foreign workers to live in the UK and work for an approved employer. Visas last up to 5 years before you are required to renew the visa. You will also be required to update your visa when you change jobs or employers. Providing your employment is ongoing and you meet the government’s eligibility requirements, there shouldn’t be issues with extending your visa as many times as you require.
One of a mortgage lender’s main concerns on lending for a mortgage loan is that they want to be sure you are potentially allowed to stay in the country long enough to be able to pay the monthly mortgage repayments for the full term agreed so they will look at how long you have left on your tier 2 visa. As a contingency, they may ask a borrower to provide a bigger deposit as a way to counteract some of the risks involved and to ensure they have enough equity in the property. In the unfortunate event that they have defaults in repayment, they will be required to repossess the property and sell it to cover the mortgage loan. Deposit size will also depend on other factors, such as your affordability. The more you can put down for your deposit, the more it can strengthen your application and may increase your chances of being accepted for a mortgage loan.
It is important to note that, after BREXIT, tier 2 visa is changed to skilled workers visa or skilled visa. Now the rules for the mortgages on tier 2 visa applies to mortgages on a skilled visa in the UK.
Employment, affordability and credit checks
Lenders will be interested to know how long you have been a resident in the UK if you have a tier 2 visa. Generally, they prefer applicants with tier 2 visa to have lived and worked in the UK for minimum 2 to 3 years. This will allow them to be able to assess the borrower’s credit history and a record of employment.
As with any mortgage loan application, lenders will want to check an applicant’s credit history as this will give them an indication of their credit worthiness and how reliable of a borrower they may be. Any CCJs, defaults or IVAs will leave a negative impact on your credit report. Having bad credit doesn’t entirely mean you won’t be able to take out a mortgage, but your options might be further limited, and lenders will assess this by considering the seriousness of the adverse credit and how long ago it was.
Every lender will check an applicant’s affordability and this assessment is to calculate whether the borrower would be able to afford the monthly mortgage repayments. You will be required to confirm your employment and income and they will use this to compare with your monthly outgoings, paying close attention to any loans you are currently paying off, to work out if you earn enough to pass their affordability checks.
Next steps- Tier 2 Visa Mortgage
Although tier 2 visa holders are able to take out a mortgage loan in the UK, your options in lenders and products may be slightly limited. Approaching a mortgage broker will usually be helpful as independent mortgage advisors have access to lenders on and off the high street, including specialist lenders. They are able to compare lenders from the whole of market and find you a deal best for your personal circumstances. They can use their experience and expertise to help you strengthen your application in order to increase your chances of being approved by a lender for a mortgage loan.
FAQs- Tier 2 Visa Mortgages
Can I Obtain a Tier 2 Visa or Skilled Worker Visa Mortgage with a Bad Credit History?
Getting a tier 2 visa mortgage with a bad credit history is a complicated process but not impossible if you have a bad credit score; it’s always better to contact a specialist mortgage broker who can help you with your mortgage application.
Can I use a Tier 2 Visa or Skilled Worker Visa Mortgage to Purchase a Buy-to-Let Property?
Yes! A tier 2 visa holder or a foreign national working on a skilled worker visa can apply for the buy-to-let property using a mortgage provided he/she has sufficient funds available to cover the purchase price plus interest payments. The amount of money needed depends on the type of property purchased, and it also varies depending on what kind of mortgage product you choose. If you are foreign national working in the UK, the first step for you should be to contact a mortgage broker before starting your loan application. A broker makes you aware of different mortgage options available.
Which are the best mortgage lenders for Tier 2 visa holders?
Many lenders with different lending criteria are suitable for people holding a tier 2 visa in the United Kingdom, but you will have to contact for some financial advice because of your tier 2 visa status.
What are Tier 2 Visa or Skilled Worker Visa Mortgages?
As discussed above tier 2 visa name has changed to skilled worker visa after BREXIT.
Can non-UK citizens get a mortgage?
A person applying for a mortgage must meet certain requirements, such as having a valid passport and proof of address. However, there are exceptions where a foreigner can obtain a mortgage even without meeting these conditions. For example, a spouse or civil partner of a British citizen can qualify for a home loan under special rules. In addition, a child born outside Britain can receive a mortgage if his parents were married when she was conceived.
Can I get a mortgage on a tier 4 visa?
The answer is yes. You can apply for a mortgage on tier 4 visas. But it’s important to note that this option is only open to those individuals who hold an EEA family permit which allows them to live and work freely within the European Union. This means that you need to make sure that you do not fall into any of the following categories:
- Holders of temporary residence permits;
- Those whose stay exceeds three months
- Individuals who intend to leave the country during the course of their visit;
- People who plan to return to their countries of origin.
How much time does left on tier 2 visa lenders want as mortgage requirements?
Most lenders require atleast 1-2 years left on your tier 2 visa for the approval of loan application because it gives them enough confidence that you are able to stay in the country and cover your mortgage payments.
Can tier 2 visa holders start a joint application?
Yes, skilled or tier 2 visa holders can start a joint application. There is much range of lenders who welcome the joint mortgage application, but you may need to contact them for a bit of expert advice before.
Can I buy a house with leave to remain in the UK?
Yes, you can buy a house with leave to remain in the UK.
How much amount can I get as a tier 2 applicant?
It depends on the purchase price, level of deposit, time left on visa and credit file. You can contact a market broker to get more details.
Do I need to provide bank statements to prove my income?
No, you don’t need to submit a bank statement to show your monthly income. Your employer needs to verify your salary by submitting a W-8 form.
Is my current job sufficient to support me while buying a property?
If you are already working then no problem. If you plan to change jobs, you should check whether they accept tier 2 visa applicants.
Are there any other documents required from the lender?
You need to provide all relevant information about yourself like ongoing employment history, address history, utility bills, pension payments, credit cards details, permanent employment contract etc., along with supporting documentation so that a lender can assess your eligibility.
Would buy a property in the UK gives me the right to remain in the UK?
Yes, you will be permitted to reside in the UK after purchasing a property.
What happens if I am unable to pay off the full balance of the loan?
In case of defaulting on payment, the lender has the power to repossess the property. The process usually takes around 6 weeks. After repossession, the lender sells the property and uses the proceeds to repay itself. It also charges interest on the outstanding debt until the entire sum is repaid. Unable to pay off the full balance could also result in poor credit history.