Tier 2 Visa

happypie

Hi,
I am on Tier 2 Visa and about 12 months away for ILR.
As such I wasn't actively looking for house, however an agent emailed a house brochure, I viewed it and liked it.

I had an approval letter from Halifax and I think they were charging 4.5% pa interest based on my Visa status.

My question is -
1. if I go with Halifax now and after ILR I switch to best mortgage options available to me, is that possible and cheap/free to do? so I pay 4.5% only for a year and then I am on cheaper mortgage like everyone else, so I loose extra interest amount just for a year?
2. is it worth the hassle? should I just wait for another year? though house is nice and it can be considered a 'deal' if my current offer is accepted.

any response will be appreciated.

thanks.

kingstreet

The mortgage rate has nothing to do with your visa.

It relies only on the loan to value.

What's your deposit, 5%?

happypie

Halifax wants 10% deposit minimum.

I plan to do 20% deposit.

you are a mortgage broker so you'd know more but temp Work visa holders and permanent residents get different rates so isn't mortgage rate dependent on your residential status?

a friend of mine has got 1.5% mortgage from another bank but that doesn't entertain Tier 2 Visa holder (i think NatWest).


coming back to my original questions, would appreciate response on those as well -

1. if I go with Halifax now and after ILR I switch to best mortgage options available to me, is that possible and cheap/free to do? so I pay 4.5% only for a year and then I am on cheaper mortgage like everyone else, so I loose extra interest amount just for a year?
2. is it worth the hassle? should I just wait for another year? though house is nice and it can be considered a 'deal' if my current offer is accepted.

kingstreet

Yes.

The same rates apply regardless of whether you are UK/EU/EEA/ILR or Visa.

Your questions are moot as your assertion is wrong. Halifax does not have a separate product range dependent on status/nationality. Nor does any lender, AFAIK.

kingstreet

Here is the Halifax criteria on Foreign Nationals from the Intermediary site;-

All EEA citizens in this category have full rights to enter, live and work in the UK, provided they are able to support themselves without the need for State benefits.

Where the customer is not a citizen of one of the countries listed above then the following checks must be completed:

Applicants must not enjoy diplomatic immunity
Passport includes indefinite leave to remain - proceed.
Passport does not include indefinite leave to remain but includes work permit or visa with minimum 2 years 6 months remaining - proceed.

If not, has the customer lived and worked in the UK for over 3 years (excluding refugees or any period as a student) - proceed
If not, where work permit has less than 2 years 6 months remaining employer must confirm that they have applied (or intend to apply) for the permit to be renewed - proceed

If none of the above applies, then the case may not proceed (or could be limited to 75% LTV).

Please ensure that if the passport has a visa stamp and if this stamp has specific conditions attached that any documents that refer to these conditions are submitted with the passport, i.e. if the visa says !!!8216;As authorised by the secretary of state!!!8217; then the work permit and a letter from the employer confirming that they have applied (or intend to apply) for the permit to be renewed are submitted.

Some Non-EEA nationals may have an identity card issued by the home office in place of a visa, which will confirm the client's right to stay, work or study in the UK. These cards are acceptable.

happypie

ok. so you mean to say that Halifax has 4.5% rate for everyone. they didn't quote me high rate because of my residential status.

in that case Halifax and NatWest (or other banks for that matter) has big difference in their interest rates. i have seen advertisement in newspaper for 1.5 to 2% interest rate for initial few years but those banks are not open for Tier 2 Visa holder.

thanks for text from Halifax site, yes, I do follow in one of the conditions.


my question is actually still valid which is that if I take Halifax product (4.5%) and then after a year switch to another bank which offers mortgage to ILR holder and has lower rate, is that possible.
i guess answer to this is depending on specific terms and condition of Halifax product? and is there any minimum lock in period etc. isn't it?

kingstreet

Yes.

Your future options depend on the terms of the product.

What is the product code, please? It should read like FAT352, or similar. looking at the product guide, the only rates above 4% are for 90% LTV or more and for longer-term fixed rates.

AFAIK Halifax has no one-year products of any kind.