Date: 9 May 2024Are you a non-UK citizen dreaming of owning a home in the United Kingdom? The process of securing a mortgage as a foreign national can often be a challenging and frustrating endeavour.
However, with the introduction of Nottingham Building Society's Foreign National Mortgage, your dreams can now become a reality.
In this article, we will explore the unique proposition offered by Nottingham Building Society, the key criteria for eligibility, and the application process.
Let's delve into the details and discover how you can make your homeownership dreams come true.
The Foreign National Mortgage offered by Nottingham Building Society is specifically designed for foreign nationals and expats returning to the UK who are looking to purchase a main residence.
This innovative proposition aims to remove the restrictive criteria that often make it difficult for non-UK citizens to secure a mortgage.
By manually underwriting cases where no credit data is available, Nottingham Building Society provides a solution for those who may not meet traditional lending criteria.
The Foreign National Mortgage is available to two primary groups:
It's important to note that the Foreign National Mortgage is applicable to residential purchases and remortgages only.
To determine eligibility for the Foreign National Mortgage, several key criteria must be met. Let's take a closer look at these criteria:
Where no credit data is available, Nottingham Building Society will manually underwrite cases to a maximum LTV of 75%. This ensures that individuals without a substantial credit history can still be considered for a mortgage.
The product range for the Foreign National Mortgage includes options for residential purchase or remortgage.
It offers 2 and 3-year fixed options for foreign nationals and 2 and 5-year fixed options for returning expats.
Borrowers can choose between capital repayment, interest-only, or part and part repayment options.
The maximum LTV for borrowers with sufficient UK credit data is 90%. Nottingham Building Society can source sufficient overseas credit data from various countries, including Australia, Austria, Canada, Dominican Republic, Philippines, Germany, India, Kenya, Mexico, South Korea, Spain, Switzerland, and the United States.
In cases where credit data from these countries is not available or insufficient, the maximum LTV is capped at 75%.
For foreign nationals, it is essential to be living in the UK at the time of application. You must hold either a Skilled Worker Visa, Health and Social Care Visa, or a Tier 2 Visa.
The income of a joint applicant on a dependent's visa may also be considered.
There is no minimum time or remaining visa requirement.
Expats may apply from overseas but must be in the UK by the time the mortgage offer is issued.
All nationalities are considered for the Foreign National Mortgage, subject to standard Know Your Customer (KYC), fraud, and sanctions checks.
There is no minimum income threshold beyond the requirements to meet visa rules. However, only incomes in GBP can be considered.
Nottingham Building Society follows standard affordability checks to assess the borrower's ability to repay the mortgage.
Additional allowances can be considered if they are stable and contractual. It's important to note that only deposits held in a UK bank account at the point of application are accepted.
The maximum LTV offered by Nottingham Building Society depends on the availability of UK and overseas credit data.
Let's explore the different scenarios and the corresponding maximum LTV:
If the borrower has sufficient UK credit data (minimum two years' credit history) and passes the standard credit decisioning rules, they are eligible for a maximum LTV of 90%.
The application will show as a PASS at the Decision in Principle (DIP) stage, and the borrower can proceed with the application after the underwriter contacts the broker with a list of requested documents.
If the borrower has come to the UK from one of the countries covered by Nottingham Building Society's overseas bureau partner and has sufficient credit data from that country, they are still eligible for a maximum LTV of 90%.
However, if the overseas credit file match is unsuccessful or there is insufficient credit information returned, the case can still be considered up to a maximum LTV of 75%.
In such cases, the application will show as a REFER in the Broker Portal that your mortgage broker will have access to at the DIP stage, and the underwriter will contact your broker to initiate the overseas search process.
The customer will receive an email from the bureau partner with instructions, and the underwriter will confirm the next steps once the credit data is received.
If the borrower is from a country not covered by Nottingham Building Society's overseas bureau partner, or if no data is available following the overseas search, the maximum LTV is limited to 75%.
In such cases, the underwriter will contact the broker for more detailed manual underwriting, providing a list of requested information and documents.
Nottingham Building Society accepts applications from foreign nationals residing in the UK who hold the following UK visas:
There is no requirement for these applicants to have been in the UK for a minimum period or have a minimum term remaining on their visa. The visa can be verified by providing the Share Code (Home Office Service) or by submitting a copy of the visa and accompanying letter.
Nottingham Building Society considers applications from all nationalities and countries. However, enhanced due diligence may be required for certain applications, which will be clearly outlined during the approval of the Decision in Principle (DIP).
Yes, the Foreign National Mortgage is specifically for residential purchases or remortgages in the UK. Foreign nationals must already be living in the UK at the time of application. For returning expats, they may begin the application process from overseas but must be in the UK by the time the mortgage offer is issued.
No, the Foreign National Mortgage is currently only available for employed applicants.
Yes, customers who have a Foreign National Mortgage with Nottingham Building Society will be eligible to apply for standard product switch rates. Enhanced rates for product switches are not applicable to this mortgage.
Yes, a married couple can apply for the Foreign National Mortgage even if one of them is unemployed. In such cases, affordability will be based on the income of the employed applicant. However, it's important to consider the source of the deposit and consult legal advice if both applicants contribute to the deposit.
Yes, customers can buy a property in their sole name even if they are married. However, any funds transferred to dependants overseas should be included in the expenditure calculations.
If an applicant has not been employed for three months, Nottingham Building Society can still consider their case if they have previously worked in the same line of work. For example, if they have worked in healthcare overseas and have moved to the UK to work in healthcare, evidence of their previous employment will be required.
If an applicant has just arrived in the UK and has a Skilled Worker Visa in place but has yet to start their new job, they can still submit a Decision in Principle (DIP). However, evidence of starting the new role, such as a pay slip, will be required with the application.
Owning a home in the UK as a foreign national or returning expat is no longer an unattainable dream. Nottingham Building Society's Foreign National Mortgage opens doors to homeownership by providing a unique proposition for non-UK citizens.
By considering individual circumstances and manual underwriting, Nottingham Building Society aims to make the mortgage application process more accessible and inclusive. I
If you are a foreign national or expat returning to the UK and seeking to purchase your dream home, contact Nottingham Building Society's dedicated team to explore the possibilities and take the first step towards making your homeownership dreams a reality.
You can read more about Nottingham’s Foreign National Mortgages here
