Buy-to-let Mortgages for Foreign Nationals on Tier 1, Tier 2, Spousal, Ancestry and Family Permit Visa’s
If you reside in the UK but don't yet have permanent residency then you probably know already that arranging a mortgage isn't as easy it would be for British nationals.
We're experts at helping customers on tier 1, tier 2, investment, ancestral & spousal visa's as well as EEA family permits arrange mortgages for a property to live in and we can also help you arrange a buy-to-let mortgage whether you are homeowners already or even as your first purchase.
This marketplace was extremely limited until the last year or two, but there are now several lenders that offer buy-to-let mortgages for these applicants. Although many don't deal directly with customers, so you will more than likely need a broker like us to help you.
Buy-to-let visa mortgages; How we can help
We don’t usually charge a fee for our service and are typically paid by commission from the lender. We don't alter the rate or the lender's fees, and we may also have exclusive products not offered direct.
We have years of experience working with foreign nationals from all over the world and helping them to arrange finance.
We can take calls outside office hours and work with most of our customers via phone and email but are equally happy to see them face to face.
You'll deal with a single point of contact throughout and only a qualified mortgage advisor. We'll arrange the mortgage for you from start to finish, dealing with all the paperwork.
We can help you deal with concerns like deposit money coming from your savings abroad or a gift from relatives. Something that is not usually a problem if suitable evidence of source can be provided.
And we can help you compare other important aspects of the transaction like the difference in costs between arranging the mortgage as an individual versus as a limited company, so you can seek further advice from accountants or solicitors and understand the pros and cons of each option.
Although most lenders will still require an applicant to have indefinite leave to remain, there are several lenders available & below is a synopsis of the key criteria.
- We don’t usually charge a fee for our advice service, and we don’t alter the fees set by the lender.
- Mortgages available up to 80% of the property value.
- Rates currently available from 1.38% at 60% loan to value on 19-07-2018 and may no longer be valid.
- Maximum advances up to £1 million sterling.
- All types of visas and residency permit potentially acceptable.
- No specific minimum residency in the UK before application.
- No minimum time remaining on current visa or residence permit.
- Products are available from both specialist lenders and high street banks.
- No set minimum income requirements.
- First-time buyers are acceptable.
- A broad range of options for homeowners or experienced landlords.
- Holidays lets and Air B&B potentially suitable.
Please note; the rates and criteria listed above were correct on the 19-07-2018 and will be subject to frequent change and are given merely to indicate the possibilities at the time of writing.
Buy to let for foreign nationals; In detail
As with normal buy-to-let mortgages arranging loans on an interest-only basis is straightforward if desired.
Anyone entering the buy-to-let marketplace today should consider the impact of changes to tax regulation in the sector and whether to arrange the loans under an LTD company to take advantage of potential tax benefits.
There are a sizable number of lenders available but the usual practice of the best deals mainly catering to lower risk customers will still apply.
Applicants with several years of UK residency and at least a couple of years remaining on any current visa will be most likely to have access to the "high street" or very competitive rates.
Those with less time on the visa remaining or shorter residency history may well be able to arrange something that is not vastly more expensive, but those applicants who have only lived in the UK for a few months will be limited to quite costly options at first.
Similarly, there are very few competitive options for first-time buyers and so those who already own a home that they live in will have the best range of deals available. If you already own an existing buy to let then better options will be available.
Anyone buying a buy to let as their first purchase should expect considerably higher interest rates than mainstream lenders offer and much higher fees.
But you could change over to a more normal lender in most cases within 6 to 12 months.
Once you are either a "residential owner-occupier" or an experienced landlord for half a year or more, then you should be able to access a much broader range of options.
More lenders catering to tier 1 and tier 2 visas, and a fair number for spousal, ancestry and EEA Family members but applicants on refugee visas will be limited to much more costly options.
Whilst there are lenders with no minimum income requirements you would normally need an income of some kind and the better your income, the better the range of options that should be available.
Anyone who owns a property abroad should be aware of the higher rate stamp duty rules. Any share in a property worth more than £40k wherever it is will mean the higher rate stamp duty becomes liable and on high-value properties, the difference in tax is very significant.
Make sure to read our guide to buy let mortgages to understand more about buy to let in general and scenarios that will affect your options such as "HMO's" or homes of multiple occupation.