Mortgage advice for foreigners, nothing less than 20% deposit!

abmt

Hi! Me and my girlfriend need some help from all the experts here!

We both are foreigners in the UK, with good jobs as engineers and earning a good amount of money. She has been living here for 4 years, while I have only arrived six months ago.

We have recently become very interested in purchasing a house here in the UK, as we plan to stay here long term. The only problem is that we currently only have about 10k Pounds, for a 150k-170k home we would like to buy. Due to our nationality situation, we have not been able to get a mortgage that would consider less than a 20% deposit. We have been trying to go around this, and find a way to get it done, calling every bank (we have called over 20), and all come to the same conclusion. We are trying to figure out if there is any recommended lender that might take us into consideration.

Our work situation is quite favourable, as we both work for a large company, with a good reputation, and have been working there for a large number of years. I would hope that this would influence positively, but so far it hasn't.

We are really looking forward to buying soon, and not having to wait a year or more to complete the 20%.

Any advice would be very very welcome!!

Thanks a lot

LeeSouthEast

You're in the same boat as most other people. Banks want a 20% deposit. They couldn't care less where you come from, everyone is in the same position.

LilacPixie

I was born here, lived here for 30 years and need the same deposit as your do to get a semi decent rate. Nothing to do with nationality just banks in general.

VIGILANT22

abmt wrote: »

We have been trying to go around this, and find a way to get it done, calling every bank (we have called over 20), and all come to the same conclusion. We are trying to figure out if there is any recommended lender that might take us into consideration.

It is a mortgage adviser (whole of market) you need to speak with....this is their job to undertsand the market and do research on your behalf.

oli_ro

LilacPixie wrote: »

Nothing to do with nationality just banks in general.

I am sorry, but your statement is incorrect. As a non-british citizen you need to have a certain LTV to get *any* mortgage not to get a semi decent rate. Please do a bit of research before you categorically state that is nothing do to with nationality.

Now, I am not saying that the banks don't have the right to do so, it is simply much riskier to loan money to someone on a visa, who can lose their job and find it difficult to find another company to hire them.

OP, most banks require 20%, but there are banks that asks for less, but this depends on your situation.
I strongly advise you to speak with a whole of market fee-free broker as they have experience in dealing with cases like yours.

Thrugelmir

The risk for the lender is that the borrower could literally disappear if financial difficulties arose. The value of a house could easily move 10% in any market.

The lender requires security for the loan. Nothing more nothing less.

wodgerdodger

You don't mention which nationality you are?. If you are an EU national then you would normally be treated exactly the same as a UK resident would be. If a non EU resident then it is going to be much harder i'm afraid but not impossibe , some Lenders do permit lending to "professionals" subject of course to your rights to residency in the UK.

As mentioned by another poster a qualified adviser will know which lender is more flexible if you are non EU nationals .

Hope this helps.

Sorry forgot to mention will also depend on remaining time on work permits

giruzz

Hello,

I've called Abbey two weeks ago and they explained that:

1) EU Nationals -> pretty much the same as UK residents (only requirements that the person must have been in the UK for at least 12 months)

2) Non EU-nationals -> At least 3 years left on the visa, at least 12 months of continuous employment history (even different employers).

In my case, I'm EU and my gf is non-EU...so they said that two more conditions apply:

a) Employment: must be permanent (e.g. probation completed)
b) No adverse credit history

Regards,

giruzz

milan_ns

I'm a non-EU national on a work permit and have the same problem.

If they are willing to offer mortgage at all, banks want 20% deposit. There is not interest rate penalty, they just want bigger deposit.

The only other non-standard condition is that visa must have at least 6 months left on it.

While I find these requirements perfectly reasonable, they're keeping me off the property ladder .

I expect banks will ease the LTV requirements once the economy picks up.

Jonbvn

I am a Brit by birth. When we bought our house in the UK a few years back (before the recession) when I was working overseas. Due to this, we required 25% deposit.

I do not see banks relaxing such requirements.

VIGILANT22

milan_ns wrote: »

While I find these requirements perfectly reasonable, they're keeping me off the property ladder . .

At least you have the opportunity here, I have worked in many parts of the world where if not a national you could not own property in the country.