Agreement in Principle only for UK citizens?

Messiah9

Hi,
I'm doing my research on collecting all relevant information about the process involved end-to-end while buying a new property to live in UK.
I recently got to know about AIP and apparently, I would need one if I want the EA to take me for viewing the properties and show me around?
So, I checked online the criteria and amount of information I need to provide to get an AIP. Among the different criterias listed on Barclays UK site here: https://welcome.bank.barclays.co.uk/forms/onlineaip/gettingstarted?execution=e1s1
one of the criteria says: "Aged 18 or older, with the right to live in the UK permanently and 2 years’ UK address history"
I live in UK on a work-permit visa, so would that mean that I cannot apply for an AIP?
Thanks.

Comms69

Why is this a surprise?

It's not just for citizens. But if you're buying using a residential mortgage, it's not uncommon for the lender to assume you'll, you know, live there

davidmcn

Lenders have different criteria for borrowers' immigration status - I suggest you contact a mortgage broker rather than going round each lender individually.

Messiah9

davidmcn said:

Lenders have different criteria for borrowers' immigration status - I suggest you contact a mortgage broker rather than going round each lender individually.

Thanks, I'll check. Do the mortgage brokers charge a fee for such enquiries?

aestivus

I was in a similar position and would definitely second using a mortgage broker. In the end there were only a very few lenders who would work for me given my specific situation - and my broker was able to quickly identify that and thus save me a lot of hassle. 

seradane

You can definitely get an AIP and even a mortgage as a non-citizen, however different banks have different requirements/limits they will put on your lending. For example HSBC told me they would require a minimum 25% deposit, which was out of the question for us. But went to a broker and he was able to find another lender that was completely fine with a more sensible deposit. You will almost certainly need at least a year of residence and credit building before anyone will consider you though.

The "right to live in the UK permanently" wording is confusing but basically if you are on a visa that has a path to ILR/Citizenship, you'll be fine - and Tier 2 work visas are ok - but things like student and youth mobility visas not so much.

seradane

Messiah9 said:

davidmcn said:

Lenders have different criteria for borrowers' immigration status - I suggest you contact a mortgage broker rather than going round each lender individually.

Thanks, I'll check. Do the mortgage brokers charge a fee for such enquiries?

Oh, and to answer your question, no. You only pay a mortgage broker when you actually take out a mortgage with them, so the initial chat and getting the AIP should all be free.

Messiah9

seradane said:

You can definitely get an AIP and even a mortgage as a non-citizen, however different banks have different requirements/limits they will put on your lending. For example HSBC told me they would require a minimum 25% deposit, which was out of the question for us. 

The "right to live in the UK permanently" wording is confusing but basically if you are on a visa that has a path to ILR/Citizenship, you'll be fine - and Tier 2 work visas are ok - but things like student and youth mobility visas not so much.

Thanks, in my case following is the situation:
1. Living in UK for almost 3 years as a private tenant (not yet completed 3 years though)
2. On a Tier 2 work visa.
3. I'll be paying more than 25% as the deposit.
So, I hope in my case, it will be easier to obtain an AIP.

seradane

Have you been building credit with credit cards/phone contracts/bills, etc?

Also, be a bit careful about your visa expiry - if you get down to less than 12 to 18 months remaining (even if you can renew it no problem), banks start to be a bit reluctant to lend.

But based on what you've said it sounds like it'll be pretty straightforward for you. Have a chat with a broker and I'm sure they'll be able to find a product that will suit.

Messiah9

seradane said:

Have you been building credit with credit cards/phone contracts/bills, etc?

Also, be a bit careful about your visa expiry - if you get down to less than 12 to 18 months remaining (even if you can renew it no problem), banks start to be a bit reluctant to lend.

But based on what you've said it sounds like it'll be pretty straightforward for you. Have a chat with a broker and I'm sure they'll be able to find a product that will suit.

Thanks for the details. Yes, about the visa, it makes sense. Maybe after 5 years completion, I'll be eligible to apply for ILR.
I did try getting a mobile contract around 1.5 to 2 years ago from Vodafone and for some reason it got rejected. Even the guy working in the Vodafone store couldn't explain the reason. I'm not sure why that happened. Maybe because I was fairly new to the UK and my address history in UK was just about 1 year.
I've been using the phone on pay-as-you-go scheme since past couple of years since my usage of phone is minimal. Now, I'll apply for mobile contract once again to build the credit history.
I'm not sure what you mean by "building credit with bills"? What kind of bills are these? At the moment, I just pay direct debit for utility bills and council tax along with a monthly rent.

csgohan4

you need a credit card to build your credit history, pay it all in full every month