Tier 2 Visa Mortgage | Mortgages for people on Skilled Worker Visa

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Getting a mortgage on a tier 2 visa is a difficult task but with proper guidance, you can grab the best mortgage deal. Skilled visas are the most popular visas for people who want to work in the UK. The visa allows work in the UK as a foreign national. Before diving deep into mortgages for individuals on work visas in the UK, we want to make sure that our readers will understand different visa typesThe different types of visas that are available to non UK re....

Tier 2 visa or skilled visa is a visa that allows individuals to work in the UK. It is usually granted for a period of up to 5 years and can be renewed if needed. When it comes to mortgages, Skilled visa holders are subject to the same regulations and requirements as British citizens. There is also another category of such visa which is healthcare worker visas which is for those who are employed in the healthcare sector.

According to the ONS, there has been a 4.4% increase in rents across the UK in the past year. Now, if you are on any of the work visas in the Uk, we would suggest you start your journey onto the property ladder in the Uk by taking a mortgage. And the best solution is to get a tier 2 visa mortgage in the UK; as an international worker visa, you may end up with high-interest rates if you choose to go with a high street lender. So, it’s important to shop around and compare the mortgage rates from different lenders before signing up for one.

We recommend that you reach out to a specialised broker who can help you find the best tier 2 visa mortgage in the UK. These brokers are experts in helping international workers gain access to mortgages on work.

In this guide, we look further into tier 2 visa mortgages for foreign nationals. We will try to answer the most asked questions such as How to get a mortgage with a skilled worker visa, what are basic criteria for a mortgage on tier 2 visa status etc.

Mortgage Success Stories Of Foreign Nationals

Understanding Tier 2 Visas

A Tier 2 visa is a type of United Kingdom work visa that is issued to skilled workers from outside the European Economic Area (EEA) and Switzerland. This visa is intended for individuals who have been offered a job by a UK-based employer and are looking to work in the country on a long-term basis.

To be eligible mortgage, there are certain requirements that must be met. These include:

Having a valid job offer from a UK-based employer who holds a Tier 2 sponsor license.
Meeting the minimum salary threshold for the specific job role. This varies depending on the type of job and the location of the job within the UK.
Possessing a good command of the English language.
Meeting the relevant requirements for maintenance and financial support, which vary depending on the specific circumstances of the individual.

Additionally, there may be certain restrictions on the type of work that can be performed while on a Tier 2 visa, and there may be limits on the length of time that the visa can be held.

How to Get a Skilled Visa Mortgage in the UK?

If you are a skilled worker with a Skilled Worker visa in the UK and looking to obtain a mortgage, there are several steps to follow:

Check your eligibility: The first step is to ensure that you are eligible for a Tier 2 visa and meet the lender’s eligibility requirements. These requirements include having a valid work visa, meeting the minimum salary threshold, having a good credit history, and providing a sizable deposit.
Get in touch with a mortgage broker: Seeking professional guidance from a mortgage broker is highly recommended, as they can help you find the best Skilled Worker visa mortgage options in the UK. They will assess your financial situation and guide you towards the best available options.
Get a mortgage agreement in principle: Once you have found a lender that offers Skilled Worker visa mortgages and have been pre-approved for a mortgage, you will receive a mortgage agreement in principle. This document outlines how much you can borrow and is an important step in the mortgage application process.
Find a property: Once you have your mortgage agreement in principle, you can start looking for a property to purchase in the UK. Keep in mind that you will need to provide the lender with the details of the property you wish to buy.
Submit your mortgage application: After finding a suitable property, you can submit your mortgage application to the lender. The application will need to include information about your employment, income, credit history, and other financial information.
Wait for approval: The lender will review your application and make a decision on whether to approve your mortgage. Once approved, the lender will issue a mortgage offer, which outlines the terms and conditions of the loan.
CompletionThe point at which a property purchase is finalized and owne... and moving in: After accepting the mortgage offer, the final step is to complete the purchase of the property and move in.

It’s important to note that the process of obtaining a Skilled Worker visa mortgage can be complex, and seeking professional guidance from a qualified mortgage broker is highly recommended. They can help you navigate the process and ensure that you find the best mortgage option for your specific circumstances.

Factors and Lender Consideration

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 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 equityThe difference between the value of the property and the amo... in the property. In the unfortunate event that they default 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, a tier 2 visa is changed to a skilled workers’ visa or skilled visa. Now the rules for the mortgages on tier 2 visas apply 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. Generally, they prefer applicants with tier 2 visas to have lived and worked in the UK for a minimum of 2 to 3 years. This will allow them to assess the borrower’s credit history and record of employment.

As with any mortgage application, lenders will want to check an applicant’s credit history as this will give them an indication of their creditworthiness 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.

Which are the Top Mortgage Lenders for Tier 2 Visa Mortgages?

If you’re on a Tier 2 visa and considering a mortgage in the UK, here are some lenders who specialize in offering mortgages to foreign nationals like yourself:

Natwest
Barclays
TSB
HSBC
Metro Bank
Clydesdale Bank

Keep in mind that each lender has its own criteria, so it’s essential to explore your options and find the best fit for your situation. Your credit history, residencyThe borrower's residency status, such as whether they are a ... duration, and remaining time on your visa will influence the lender’s decision. If you are interested, you can always contact our team of expert market brokers who can help you to get the best mortgage deal.

The list above is updated as of July 8, 2024

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 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

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 a Tier 2 visa or Skilled Worker Visa mortgage be used 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.

What 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. For example, Halifax bank also provides mortgages for non-UK nationals. However, there are some lenders that only cater to British citizens and do not accept applications from other nationalities. It is always better to contact an experienced mortgage broker before starting your loan application.

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. In short, these visas allow foreign nationals to live and work in the UK for a period of time. These visas are granted to those who meet certain requirements set by the Home Office. Once the visa is granted, the person must stay in the country for at least three years. During this time, the person can apply for a mortgage loan.

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 addressEvidence of a borrower's current address, such as a utility .... 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. Read more about this in our article Mortgages for Non-UK Citizens.

How much time do tier 2 visa lenders want as mortgage requirements?

Most lenders require at least 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 the visa and credit file. You can contact an expert broker to get more details.

Are there any other documents required from the lender?

You need to provide all relevant information about yourself like ongoing employment historyA record of a borrower's employment history, which may be us..., address history, utility bills, pension payments, credit card details, permanent employment contract etc., along with supporting documentation so that a lender can assess your eligibility.

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.

Can I get a mortgage on a skilled dependent visa?

If you are a mortgage applicant on a skilled dependent visa, then yes, you can get a mortgage. But, you will have to prove that you are financially independent. This means that you should be earning enough money to support yourself and your family. If you do not earn enough money to support yourself, then you cannot get a mortgage. It’s better to contact experience mortgage brokers before starting the mortgage application.

Can I get a loan on a tier 2 visa?

Yes, you can get a loan on a tier 2 visa in the UK. There are many lenders who offer loans on tier 2 visas. You can find out more by contacting an expert mortgage broker.

Is it possible to apply for a mortgage while living abroad?

Yes, you are eligible to apply for a mortgage in the UK even if you live abroad. However, you will have to make sure that you have sufficient funds available to cover the monthly instalments. Also, you will have to show that you are financially stable and capable of meeting the repayment obligations.