Tier 2 Visa Mortgage

We explain how mortgages work for people with a Tier 2 Visa, which is now known as a Skilled Worker visa. 

What is a Tier 2 Visa?

A Tier 2 Visa was originally the main immigration route for skilled workers from outside of the European Union to come to the UK and work for an approved employer. 

A Tier 2 general visa gave the holder the opportunity to get indefinite leave to remain in the UK. It also meant the person’s partner and children could move here with them. 

After Brexit, the Tier 2 visa was replaced with the Skilled Worker visa. This allows people from the EU and the rest of the world to come to the UK for work.

What is a Tier 2 visa mortgage?

There aren’t any specific products for people on a Tier 2 Visa or Skilled Worker visa, but as long as you meet a lender’s general mortgage criteria, it will be possible to get a mortgage. 

How do I qualify for a Tier 2 visa mortgage in the UK?

Most mortgage lenders need you to have at least two to three years address history and credit records in the UK. This is common mortgage criteria, designed to ensure that people have been in the UK long enough to build up a reliable credit history and employment record. 

Lenders typically expect you to have at least six to 12 months left on your visa. They will also usually ask if you are likely to renew the visa, and whether you will have ongoing employment in the UK. 

How much can I borrow on a Tier 2 Visa mortgage?

The amount you can borrow will be led by how much you earn and spend each month. Each lender will have different ways of calculating how much you can borrow, but a very general rule is that you may be offered around 4.5 times your annual income.

What documents are required for a Tier 2 visa mortgage application?

You will typically need to provide your passport, visa details, employment contract, proof of income, bank statements and credit history. Lenders may also request additional documentation depending on their specific rules. 

Can self-employed individuals on a Tier 2 visa get a mortgage in the UK?

As long as you have updated your Skilled Worker visa details to reflect your self-employed status, you should be able to get a mortgage. The process may be slightly more complex, as lenders typically require a track record of self-employment, proof of income stability, and additional documents such as tax returns and proof of current contracts.

Is it necessary to have a certain amount for a deposit when applying for a Tier 2 visa mortgage?

It is generally a simpler process if you can provide a larger deposit of at least 20 to 25 percent of the purchase price. The usual rule is that these funds come from your own savings and are not gifted from family or friends. 

How long does the Tier 2 visa mortgage process take from application to approval?

The timeline for Tier 2 visa mortgage approval can vary depending on the lender’s processing times and the complexity of your application. 

The process can take several weeks to a couple of months. It’s a good idea to begin the mortgage application process as soon as possible, to account for any potential delays.

Are there any restrictions on the type of property that can be purchased with a Tier 2 visa mortgage?

While there are no particular restrictions on the type of property that can be purchased with a Tier 2 visa mortgage, each lender may set their own criteria regarding the type, location and condition of the property. 

A broker will be able to tell you whether the property you’re considering buying will fit most lenders’ criteria.

What are the interest rates and fees associated with a Tier 2 visa mortgage?

You will have access to the same rates as any other customer, although these can vary depending on your income, deposit and the product you choose.

Some mortgages come with arrangement fees, which can often be added to the loan. The general rule is that products with a fee tend to have lower interest rates, while zero fee products will often have a slightly higher rate. 

Are there any additional costs that need to be considered when applying for a Tier 2 visa mortgage?

There won’t normally be any additional costs for someone on a skilled worker visa, unless you find you have to extend, switch or update your visa as part of the process. There are fees payable to do this, as listed on the government website.

How can a broker like Mortgages by McAteer help with a Tier 2 visa mortgage application? 

We have worked with many foreign nationals on skilled worker and Tier 2 visas, and we know which lenders to approach for different situations. 

We’re here to help at every step of the mortgage process, and will make sure you find a suitable and affordable deal.. Contact us today to find out more about how we can help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 07/08/23