The client and his family had been in the UK for eight months and their tenancy agreement was due to end in four months. They wanted to purchase a home as a foreign national and settle in the UK instead of renting again.
As the client was on a Tier 2 visa and did not hold a British or EU passport, nor did they have settled status or leave to remain, they were not eligible for many mortgage providers who require a minimum of 25% deposit and or 3 years of residency in the UK, or permanent rights to reside in this situation, which the clients did not possess.
Additionally, due to their short time in the UK, their credit score was not high, further complicating their ability to secure a mortgage.
Despite having a deposit, it was less than 25% of the property value, and they were looking to secure a mortgage in excess of 75% LTV. This made it challenging for the client to find a suitable mortgage provider.
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We were able to find a lender who was willing to consider a mortgage with just a 10% deposit. They were understanding of the client’s situation and took into account that he was on a skilled Tier 2 visa and earning a substantial salary.
While they usually insist on a minimum 25% deposit in this scenario, they were prepared to offer a mortgage with just 10% deposit because of the client’s overall status and earnings.
The client had been running a bank account and receiving his wages electronically and also had an active mobile phone contract, which helped him build up his credit score to a level that was sufficient to pass the lender’s requirements.
As a result, the client and his family were able to purchase a home and avoid renting for potentially another year or two.