Buying a home can be an extremely stressful and time consuming feat to overcome, with all of the financial credit checks and hoops you have to jump through, but if you have only just been granted citizenship, does this mean that it can be even harder for you to buy a home? Obtaining a mortgage as a foreigner is something that is scarcely discussed, but as more and more people choose to settle in the UK, it’s important to explore all of the options and to make sure that everything is made clear throughout the process.
The process comes down to two deciding factors – whether or not you are a UK national, and how long you have lived and worked in the UK for.
If you are a UK national, it will be easy to trace your credit and employment history, which will mean that you will be well on your way to purchasing a UK mortgage without the additional agency or any other costs that may occur in the process. There are of course requirements that need to be met before a mortgage can be granted for an EU national who is looking to purchase property from the UK. Firstly, they will need to have been a resident of the EU for three years or more, it’s also necessary to have a UK bank account, without this, credit lenders and mortgage providers will not even give you a second look, and thirdly you also need to have a permanent job in the UK. Without these three factors, you cannot be held accountable for managing UK finances and will be turned away from every mortgage provider.
If you are not a EU national, then you will obviously not have a traceable credit history, which is a necessity for lenders to assess how accountable and capable you are for paying them back. Just like if a UK national does not have any credit history, or has poor credit history, without this, no loans can be distributed and sent out. To be able to solve his problem, it’s essential for an individual to have been a resident in the UK for more than two years, as well as having a permanent job also based in the UK and a UK work permit, the correct visa or to have been granted ILR.
The options for indefinite leave to remain citizens:
If you live in the UK and have been working, either on a work visa or a Tier 1 Visa, then you will have a notable paycheck and income. This will make it much easier for you to find a lender that is able provide the tools for you to get a mortgage. Additionally, being granted ILR will also mean that you will have the resources to prove your credit and financial history. It’s a common misconception that the UK housing market and commercial property experts are prejudicial to residents who aren’t UK nationals, but as with any money lenders, the real deciding factor is a person’s credit history and employment history. If a visa is soon to run out and is not up for renewal, then mortgage lenders will steer clear of this and advise the person to return after they have been granted citizenship or a renewal in their visa.
Before considering buying property in the UK, it’s essential that you firstly meet these requirements, as mortgage lenders will steer clear of anybody who has little or no traceable credit history.
August 16, 2017