Can you get a mortgage without permanent residency?
Key Takeaways
- You can still potentially get a UK mortgage without settled status, but eligibility and deposit requirements vary significantly depending on your immigration status, income and the lender's criteria.
- Applicants with settled status generally face fewer restrictions, while those with pre-settled status may need a deposit of between 5% and 25%, depending on the lender.
- Getting a mortgage on a temporary visa can be more challenging, with some lenders requiring a minimum period of UK residence and employment, sufficient time remaining on the visa, or indefinite leave to remain.
- Some lenders may offer mortgages of up to 95% loan-to-value to applicants without settled status, although others may require deposits of up to 25% depending on individual circumstances.
- Independent mortgage advice can be particularly valuable for non-UK residents, helping them identify suitable lenders and understand the criteria and steps involved in making a strong mortgage application.
ESPC Mortgages’ Paul Demarco, a mortgage and protection specialist, discusses how you can obtain a mortgage without settled status.
If you are originally from a country outside of the UK, but are hoping to buy a property in Scotland, the rules and criteria for obtaining a UK mortgage can differ from those who are already residents.
This doesn’t by any stretch mean that you can’t get a mortgage: if you meet the correct criteria, you should be able to get your foot onto the property ladder, although it may be a more difficult or a longer process than for those who are UK residents.
Can you get a mortgage without settled status?
Lenders will have different criteria for applicants who are from outside of the UK, which generally falls into three categories: pre-settled status, settled status and temporary visa.
The lenders all now ask for a share code which proves their right to remain in the UK.
These statuses were introduced as Britain left the European Union in December 2020 and apply to all residents who are not originally from the UK.
Some lenders may lend up to 95% loan-to-value in each of these three categories, depending on the applicant’s income and the lenders' criteria and if they have a permanent job.
However, you should be aware that not all lenders are so generous, and some require the applicant to have as much as a 25% deposit when looking to purchase a property in Scotland.
Getting a mortgage with pre-settled or settled status
Generally, if the applicant has settled status, most lenders tend not to have as many restrictions with income.
However, if you have obtained pre-settled status, the level of deposit that would be required will vary from lender to lender, ranging between 5% and 25%.
This means that mortgage eligibility for non-UK residents can vary significantly depending on your individual circumstances, immigration status, income and the lender you apply to.
Can you get a mortgage on a temporary visa?
When it comes to applicants who have temporary visas, this is probably where the strictest criteria are imposed by lenders.
Some of their criteria requires applicants to have lived and worked in the UK for a minimum of two years, while others may require a minimum term of six months remaining on the applicant’s visa.
Some lenders will not offer a mortgage unless an applicant has gained indefinite leave to remain in the UK (ILR).
Again, the amount of deposit that’s required varies, but most lenders will require a higher deposit from clients who are in the UK on a temporary visa.
How can mortgage advice help?
This can be a complex area to navigate, and applicants who fall into any of these categories should seek independent mortgage advice to help them ascertain the best route to homeownership for their individual circumstances.
A mortgage adviser will be able to guide you on all the steps you need to take to give yourself the best chances of a positive result, making your application as appealing and as reassuring as possible for a lender.
Get mortgage advice today
ESPC Mortgages is a team of independent mortgage advisers based in Edinburgh. With many years of experience, they are well-placed to help you purchase your first property. Get in touch with the team on 0131 253 2920 or fsenquiries@espc.com.
The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). The Financial Conduct Authority does not regulate Buy to Let Mortgages. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.