How to Apply for Tier 2 Visa Mortgages In The UK
If you’re on a Tier 2 visa in the UK, you might be looking into buying a home. Among the key questions that usually arise is how one can apply for a mortgage. Being a non-citizen, getting a mortgage may be slightly complicated, yet surely can be done with appropriate information and strategy. This guide will give you all the information you require when applying for a Tier 2 visa mortgage in the UK.
What is a Tier 2 Visa?
Tier 2 visa (currently called Skilled Worker Visa) is a visa that is awarded to persons who enter the UK to occupy a particular job position that requires some expertise. You can apply for this visa if you have a job offer with a UK-based employer and you satisfy the minimum salary and skill level requirements. Being the holder of a Tier 2 visa, you will most probably be spending at least several years in the UK, so buying a house may be a reasonable expectation.
Looking to buy a home while on a Skilled Worker Visa? Speak to an expert mortgage advisor to find the best options tailored for you.
Can You Get a Mortgage on a Tier 2 Visa?
The answer is yes, one can obtain a mortgage on a Tier 2 visa. But it may be harder than it would be to a British citizen or a permanent resident. The lenders can be more strict, and you may be required to present more documentation to show that you are solid and secure as a borrower. There are lenders that will not provide mortgages to individuals unless they have resided in the UK for a specified duration, typically at least six months, and there are lenders that will require evidence that your employment will be long-term.
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What You Need to Apply for a Mortgage as a Tier 2 Visa Holder
When applying for a mortgage as a Tier 2 visa holder, here is what you will be required to produce:
- Proof of Income: The lenders will require verification that you earn a stable income and have the capacity to repay the mortgage. This is your salary, and in some cases, any other bonuses or allowances that you may get from your job.
- Employment History: Lenders will consider your employment stability. It is useful to demonstrate that you have a full-time job that is permanent and that your visa has a long validity period left.
- Visa Details: You should be prepared to give information on your Tier 2 visa, such as the expiration date. This is because some lenders will want to see that your visa permits you to stay in the UK for at least 12 months, thus assuring them that you will be around long enough to pay the mortgage.
- Credit History: As with any other mortgage applicant, you will be required to present your credit history. The lenders will look at your credit score to determine how consistent you are in clearing debts. It is quite possible that you have just moved to the UK and do not have a complete credit history, but in some cases, the use of international credit reports can rectify this situation.
- Deposit: The lenders will require a higher deposit, probably 10-20% of the value of the property, and most of them will insist on a Tier 2 visa holder. The reason is that lenders can consider people on temporary visas as risky borrowers.
Not sure where to start? Get guidance from experienced advisors who can simplify the documentation process and connect you with the right lenders.
Key Considerations Before Applying for a Mortgage
Before you jump into the mortgage process, here are some things you should consider:
- Visa Length: Your Tier 2 visa must be of substantial length. Your visa must also have a validity of at least 12 months after the date of your mortgage application, lenders frequently demand.
- Your Job’s Stability: Lenders need to know that your job is secure. It may be more difficult to obtain a mortgage if your employment is temporary or if you have a possibility of losing your job in the near future.
- Future Visa Extensions: When your visa is about to expire, it is important to think about how simple it will be to renew your visa in the future. In case there is a doubt regarding your permission to reside in the UK, then this can influence your mortgage application.
- Interest Rates: Rates on mortgages offered to Tier 2 visa holders can be higher than those offered to permanent residents or UK citizens. Don’t forget to look at the effect of interest rate on your monthly payments.
- Affordability Checks: The lenders will investigate whether you can afford the mortgage payment with your earnings, expenses, and lifestyle. It is always good to be aware of these checks and be ready with all the relevant financial documents.
Final Thoughts
It might be difficult to apply for a mortgage on a Tier 2 visa, yet it is not an impossible task. You can improve your chances of being approved for a mortgage in the UK by knowing how it works, ensuring that you have all the relevant documentation, and dealing with the appropriate lenders.
Good luck with your home-buying journey!
