Mortgages for foreign nationals

Our special relationship with underwriters is the key.

We don’t deal with in-branch advisors; we work with underwriters. Our underwriters now understand the amount of mortgage finance our contractors can afford.

True. Some lenders are more open to contract-based underwriting than others.

But over time, we’ve developed many exceptional relationships with underwriting teams. What they all insist upon is receiving applications in a specific format.

We can package your application to their strict specifications. This saves you the time and hassle of trying to find these lenders online or on foot.

Also, we know how best to showcase your earnings to represent your true affordability. It’s this inability to see how much you’re worth that fails in-branch staff on the High Street.

Once we’ve done our part, we’ll pass it on to the senior underwriters. They, in turn, can then process your application in an efficient, timely manner.

Most contractors operate in a tax-efficient way through their own limited company. We’ve helped lenders realise that their normal affordability calculation doesn’t work for this model.

On the High Street, advisors often ask for three years’ worth of accounts. For most foreign nationals, this is a huge barrier to overcome.

The credit crunch also affected lenders’ willingness to lend. At one point, only the lowest-risk applicants could get a mortgage, even employees. Some lenders still take that outward-facing stance today.

In contrast to your local branch, we can find the best mortgage for you. We use a wide variety of contractor-friendly lenders from the whole of the market.

They will base how much you can borrow on a generous multiple of your hourly or daily contract rate. That calculation bases your affordability on an “annualised” contract rate.

We don’t ask for payslips or accounts. Instead, your contract, bank statements, CV and official ID usually suffice.

Mortgage finance is available to immigrant contractors, irrespective of their niche. But it’s not always apparent how to best access that borrowing.

Lenders impose minimum earnings thresholds you must meet, but there’s no overarching policy for income thresholds across all lenders. This can make mortgages difficult to secure for immigrant contractors on the High Street.

Plus, each lender has its own set of other lending criteria, or their perception of ‘risk’. Each will judge what contractual conditions it accepts for each level of work permit. With help from a broker, you can get a mortgage underwriter to see how much you can genuinely afford to borrow.

In the UK, most lenders at High Street branch or call centre level are equipped to deal with types types of employment:
• permanently employed (PAYE), or
• self-employed (SA302 sole trader).

As a contractor working short-term contracts, you’re neither of those. Most UK lenders only deal with contractors (limited company, umbrella workers, CIS contractors, zero-hour contractors, etc.) either through an intermediary (broker) or via their underwriters at head office.

Short-term contracts and contractor payment structures are often too complicated for lenders to deal with in-branch or at call centres. The best option for contractors is to get a broker who specialises in professional contracting to represent you.

It’s not impossible to get a mortgage without Indefinite Leave To Remain (ILTR) or ‘settlement’ status. But having permission to live and work in the UK indefinitely does help.

Without ILTR, lenders will impose exceptionally strict criteria. As these criteria vary from lender to lender, it’s impossible to list the variations here.

If you’re an immigrant who’s worked in the UK for more than two years or are waiting for ILTR, talk to us. Our experienced brokers will tell you what you need to do to make the strongest case to a mortgage lender.

Our mortgage specialists have vast experience in securing bespoke terms for immigrant contractors. We show no bias and approach each case on its merits.

We’ll only ever offer mortgages that your circumstances are likely to be able to secure. This means:

• you can get access to mortgages with little deposit;
• bespoke lending criteria makes the whole process much quicker;
• lenders can approve your mortgage application within days of your first contract.

For your peace of mind, we only work with reputable lenders. They must have proven results, ensuring that purchases they’ve handled complete to our satisfaction.

This is an important point, especially if you’ve not been in the UK for long!

There are many lenders, especially online, who say that they’re eager to lend you the money to buy your home. They will give you a “decision in principle” in the blink of an eye. But this is not the same as having an underwriter approve your mortgage application.

The problem occurs when the application gets to the underwriter for approval. Only then will the member of staff realise their error and begin to back track.

They tell you that they’re not comfortable with your immigrant contractor status. While this may only be true in part, it still puts your house purchase in real jeopardy.

By this time, you may already have a financial and emotional commitment to buying the home. That they may not be able to finance your contractor mortgage after all can be devastating.

The scenario’s made worse still as repeat credit searches leave a ‘footprint’. Too many adverse searches can damage your credit rating.