Tier 2 Visa Mortgages UK: Foreign National Mortgages

If you’re a foreign national with a Tier 2 Visa, now more commonly referred to as a Skilled Worker Visa, who is hoping to purchase a property in the UK, the process won’t be the simplest. But it’s certainly still possible to get a mortgage to put down roots here.
We’re sure you have a lot of questions before you begin your application, so we’ve answered them here. In this guide, we’ll cover:
Read on to find out everything you need to know before applying for a mortgage for Tier 2 Visa holders in the UK.
What is a Tier 2 Visa mortgage?
A Tier 2 Visa mortgage, or Skilled Worker Visa mortgage, isn’t necessarily a specific product that’s available to foreign nationals. Rather, you will typically be able to apply for a normal mortgage — the process and criteria you need to meet will simply be slightly different.
As long as you’re in a good financial position, it’s likely you will be able to access the loan you need, and mortgage lenders will primarily assess your mortgage application based on the usual credit and affordability checks associated with buying a property. But, they will also be interested in factors such as how long you’ve lived in the UK and how much time is still left on your current visa.
Can you get a mortgage on a Tier 2 Visa?
Yes, you can get a mortgage with a Tier 2 Visa if you’re a foreign national, also known as a Skilled Worker Visa mortgage. But, the process can be more complicated and there will usually be some additional hoops you need to jump through. As well as the usual credit and affordability checks, a lender will look at:
How long you’ve lived in the UK
How long you have left on your current visa
Plus, they will typically require you to provide:
Your proof of identity and residency
Proof of your name and address
Evidence of your income
A rundown of your current monthly outgoings and any debt you already have
To give yourself the best possible chance of securing the mortgage you need, it’s important that you ensure you’re organised and suitably prepared before beginning the application process.
How long do you need to live in the UK to get a mortgage?
While the requirements can vary from lender to lender, most will want foreign nationals to have been a UK resident for at least two years, so you will have had time to build up some credit history. Others may ask that you’ve spent upwards of three years in the UK, but these stricter terms will often come with better interest rates.
How much will you need for a Tier 2 Visa mortgage deposit?
As long as you satisfy all of the criteria to take out a UK mortgage as a foreign national, you may be able to secure a mortgage with a deposit as low as between 5-10% depending on your income. But, it is worth noting that having a larger deposit will provide you with access to a larger pool of lenders and more affordable deals.
If you can put down a deposit that’s 15–25% of a property’s value, you’ll put yourself in a great position to get a fantastic deal.
Are there many mortgage lenders for Tier 2 Visa holders?
Most mainstream mortgage providers don’t accept applications that come with added complications, such as if you’ve had credit problems or are a foreign national. So, you will typically need to browse products from more specialist lenders. Fortunately, many of them will still offer competitive rates you’ll be happy with.
What do foreign national mortgage rates typically look like?
As a foreign national with a Tier 2 Visa, or Skilled Worker Visa, mortgage lenders may see your application as more complex and possibly even high risk. As a result, you may find that the mortgage rates you can access are higher than if you were applying for a loan under more simple circumstances.
There are also other factors that will affect what kinds of mortgage rates you’ll be eligible for, such as your credit history, the size of your deposit, the source of your income, and the type of property you’re looking to buy. But, if you’re in a healthy financial position and you haven’t had any credit issues, you will be able to find some very competitive rates you’re bound to be happy with.
Can you get a Tier 2 Visa mortgage with bad credit?
If you’ve struggled with bad credit in the past, you might be wondering whether this will make it impossible for you to get a foreign national mortgage loan. And, while it can certainly complicate your application further, credit problems won’t necessarily stop you from purchasing the UK home of your dreams. Your chosen lender will consider your unique application in full, also looking at other factors such as the size of your mortgage deposit and what your income looks like. So, credit issues won’t automatically mean that your application is going to be rejected.
You may be seen as a high-risk borrower, though, which will limit the number of mortgage products that are available to you, and the rates you can access will often be higher. If you’re particularly worried about your past credit issues making your mortgage too expensive, it could be worth holding off for a few years to work on your rating. In the UK, most credit issues will fall off your record after six years, which can give you access to a much wider range of options when taking out your home loan.
Can I get a buy-to-let mortgage with a Tier 2 Visa?
If you’re a foreign national hoping to buy a property to rent out as an investment, you will require a buy-to-let mortgage. It is possible to access this type of loan with a Tier 2 Visa, or Skilled Worker Visa, but the lending criteria is a lot more strict and it can be more expensive than buying a residential property. For instance, you’ll usually need a larger deposit and some lenders will even ask for a business plan that outlines how you intend to ensure your investment is successful.
How can you get a foreign national mortgage in the UK?
If you don’t have one already, the first step in your foreign national mortgage application journey should be to open a UK bank account and work on keeping it active. It’s also important that you have a permanent job here in the UK, so lenders will see that you’re not planning to leave any time soon.
You’ll need to start saving for a deposit, too, and keep an eye on your credit rating, so you know what kind of position you’re in before applying. It’s worth regularly conducting a free credit check (free for 30 days, then £14.99 a month - cancel online any time) to make sure you’re on track, or at least know if there are any areas where your credit report could use some work.
Then, when you feel like you’re approaching the right time to buy a UK property, reach out to a mortgage broker who knows just how to find the product to suit your needs. They’ll also be able to hold your hand throughout the application process, ensuring you don’t make any mistakes and giving you the best chance of being accepted the first time.
If you’re planning to apply for a Tier 2 Visa mortgage - or a Skilled Worker Visa mortgage - any time soon, we’re here to help! At The Mortgage Genie, our expert mortgage brokers are well-versed in helping people just like you to buy the home of their dreams in the UK, and we would love to do the same for you!
To find out how we can help, get in touch with us today on 01915809890 — we’ll be waiting for your call.
The above blog has information contained within which was correct at the time of publication but is subject to change.
FAQs
Can I buy a house in the UK on a skilled worker visa?
Yes, it is possible to buy a house in the UK while on a Skilled Worker Visa. Although not all lenders may accept applications from individuals on this type of visa, many do. There are actually few restrictions on foreign nationals purchasing property in the UK, whether you are living in the country or based abroad. However, you will need to meet specific criteria set by lenders to qualify for a mortgage.
What is the eligibility criteria for getting a skilled worker visa mortgage?
The criteria for getting a Skilled Worker Visa mortgage vary by lender - some are more flexible, while others are stricter. You’ll need to meet the standard UK mortgage requirements, such as providing ID, a deposit, proof of address, evidence of income, and details of your outgoings. Additionally, lenders will consider visa-specific factors like how long you’ve lived in the UK and the remaining duration of your visa, as shown on your BRP card.
Do I need a job offer from a UK employer to get a skilled worker visa mortgage?
Yes, you’ll need a job offer to get a Skilled Worker Visa mortgage. Lenders require proof of your income to assess the affordability of the mortgage. In some cases, lenders may approve your application based solely on a signed employment contract, regardless of the industry and even if your start date for the role is in the future.
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.