Client
A married couple who had recently moved back to the UK to live full time. The first applicant was British born, with the second an US citizen residing in the UK on a visa. They were looking to purchase a residential home for themselves and their family.
Background
The couple had owned a residential property in the United States, which they sold before relocating to the UK. Both were in full-time employment, but having been out of the country for a long period, the second applicant was still building up a UK credit score to support the application. They needed a lender comfortable assessing a joint application from a British national and a foreign national together, for a straightforward expat residential mortgage.
Requirement
- Purchase a residential family home in the UK
- Achieve 90% loan-to-value
- Apply jointly as a British national and a foreign national
- Work with a lender willing to look past the second applicant’s limited UK credit history
Challenges
Most lenders apply restrictions when a foreign national is party to the application, particularly at higher loan-to-values. A 90% loan-to-value request would not have been possible with most lenders given the second applicant’s status. On top of that, having spent years outside the UK meant the second applicant had limited UK credit history to point to, despite both applicants being in stable full-time employment.
Solution
Being a whole-of-market broker, we knew some lenders would consider the application with no restrictions where the first applicant was British, even with a foreign national joint applicant. Using this knowledge, we identified a lender willing to accept 90% loan-to-value on this basis. If you’d like to see what you could borrow in a similar scenario, our expat mortgage calculator gives an instant estimate.
Outcome
A formal mortgage offer was secured within two weeks of submitting the full application, at 90% loan-to-value and with no restrictions placed on the application due to the second applicant’s foreign national status.
Summary
It’s possible to secure lending with no restrictions on a joint application where one applicant is British and the other is a foreign national. Speak with a specialist expat mortgage advisor for the best advice on your own situation – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider:
- Some lenders will accept a foreign national joint applicant alongside a British national.
- Some lenders will apply no loan-to-value restrictions in this scenario.
- Some lenders will consider this setup once the foreign national applicant has been in employment for six months.
- Some lenders will accept a lower credit score for one applicant if the other has a strong credit history.
Frequently Asked Questions
Can I get a UK mortgage with one British and one foreign national applicant?
Yes, some lenders will consider the application with no restrictions.
Where the first applicant is British, a number of lenders will assess the case in the same way as a standard joint application, even if the second applicant is a foreign national.
Can a foreign national get a 90% loan-to-value mortgage in the UK?
It’s possible, but the lender pool narrows considerably at higher loan-to-values.
Most mainstream lenders restrict lending to foreign nationals at high LTVs, so it comes down to identifying the smaller number of lenders comfortable with the full loan-to-value requested.
Does a lack of UK credit history stop a foreign national from getting a mortgage?
Not necessarily, especially in a joint application.
Some lenders will accept a thinner credit file for one applicant if the other has a well-established, strong UK credit history.
How long do you need to be employed in the UK before applying for a mortgage as a foreign national?
Many lenders look for a minimum of six months in employment.
Requirements vary by lender, so it’s worth structuring the application around a lender whose employment criteria you already meet, rather than waiting longer than necessary.
If you have any questions relating to an expat residential mortgage, contact us today to speak directly with one of our CeMAP certified expat mortgage advisors.
Expat Mortgages UK is a specialist broker directly authorised and regulated by the Financial Conduct Authority. We work exclusively with expats and foreign nationals buying UK property with overseas income. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1494 622 555 Email: info@expatmortgages-uk.com
Related Pages
- UK credit score options for expats – What to do when years abroad have left you with limited UK credit history.
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- UK mortgages for US citizens – How lenders assess applications from US nationals moving to or living in the UK.
- expat remortgages – Switching from a residential mortgage onto the right expat product.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.