MORTGAGES

Can foreigners buy property in the UK?

Whether you are in your home country or in the UK, buying a house is the largest purchase you’re likely to make during your lifetime.As an EU (or non-EU) citizen, getting a home loan can be a challenge, but the good news is that with the right advice and assistance it is achievable. At STARTIN we can help you throughout the whole process, from start to finish

What is a mortgage?

A mortgage is a loan taken out with a bank or another type of financial institution to buy property or land. Most home loans must be paid back over 25 years, but it is usually possible to negotiate the length of repayment period, making it shorter, or longer, depending on your circumstances. Your mortgage is ‘secured’ against the value of your home until such time as it is paid off.

It is important to know that should be unable to keep up your repayments, the lender is within their rights to repossess (take back) your home and sell it in order to get their money back.

WHAT CAN YOU AFFORD?

It’s important to avoid overstretching yourself financially. If you think you’ll struggle to keep up repayments, make sure you get advice on the maximum amount of money you can afford to spend on house repayments each month, without getting into trouble. You will also need to take the daily running costs of owning a home into consideration, such as household bills, council tax, insurance and maintenance costs. At the end of the day, all these expenses can really add up!

Lenders are required to see proof of your income such as salary slips or bank statements, as well as your other financial commitments such as outstanding debts. They will most likely ask you for information about household expenses, child maintenance and personal expenses such as insurance and travel costs.

This information is essential for lenders to know that you will be able to keep up with your mortgage repayments, should interest rates increase. It’s important to know that they are well within their rights to refuse you a mortgage if they don’t think you’ll be able to afford it.

WHAT IF I AM AN EU NATIONAL?

EU nationals with a traceable, healthy credit history could be eligible for a standard UK residential mortgage if they meet these three requirements.

• Have you been a resident in the EU for more than three years?

• Do you have a UK bank account?

• Do you have a permanent job in the UK?

If you answered yes to all three of those questions, you qualify to apply for a residential mortgage. Don’t forget that will still need to meet the criteria set by the lenders in order to get a home loan.

WHAT IF I AM A NON-EU NATIONAL?

If you are a non-EU national with no traceable credit history within the UK, then obtaining a home loan will be more complicated. Non-EU nationals must be able to answer ‘yes’ to each of these questions in order to be considered eligible for a home loan:

• Have you been a resident in the UK for more than two years?

• Do you have permanent residence rights in the UK, or a valid UK work permit?

• Do you have a permanent job in the UK?

• Do you have a UK bank account?

Why are these requirements in place?

These requirements are in place to ensure that you have built up a UK credit history – a record of proof that you are able to pay your debts on time – which the lenders will look at when you apply for a mortgage.

HOW CAN I START?

STARTIN is here to help you every step of the way! From assisting with your visa and immigration requirements to organising all your finances and checking your credit score, we are here to help you buy your dream home in the UK.

With experience and know-how on our side, we are passionate about helping you gain the confidence to start the journey as well as walking alongside you, step by step, to make it happen.

We have partnerships with a variety of banks and brokers to ensure that you have as many options as possible to suit your particular circumstances. Even if you’re currently facing a bad credit score and debt consolidation, with STARTIN you can get the help you need to improve your financial outlook.