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Hi everyone,


I need some advice on obtaining a mortgage as a foreigner.


I've finally saved up a deposit and am ready to get the first BTL property of my (hopefully) future portfolio.  After speaking to a couple of brokers however, I've come across quite a challenge.


As I am not a British or European, I am being told there are no BTL mortgage products available to me.  I'm a New Zealander living and working in the UK and a full time UK resident.  I'm here on an ancestry visa that lasts for 5 years, of which I'm in year 4.  In spring 2016 I will have Indefinite Leave to Remain (ILR)status.


Does anyone know of any lending options available to me?  Residential mortgages, so I'm told, are easier to get in this situation but I don't fancy the risk of illegally letting it out considering how hard it was to get the money in the first place.


What's more - are there any other options?  For example, my close friend, who I do trust, is European and would happily invest with me as a partnership.  However everything would need to be in his name.  Then in 2016, if say we re-mortgaged and I have ILR, is it possible to add an additional to the deed/title of the property?  Can it be partially or wholly gifted or something like that?  


Apologies for the long post and several questions at once!  I really just want to think what the best strategy would be in this scenario.  Or if anyone knows of brokers who actually deal with customers like me (foreign) wanting relatively low valued (circa £100k) property, I'd be forever grateful!








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  • 2 weeks later...




With your situation, living in the UK with a banking record and salary in the UK I wouldn't think it would be that difficult to find a lender. Few mortgage brokers should be able to help you. There are few on that forum that specialized in mortgages for expatriates/foreigners and  it is probably your best bet as they can test your situation with numerous lenders at once and be able to select the one that would take your case.


The trouble for lender if I read between the lines is your visa that is coming close to expiration. Most would not take a risk in case it is not renewed or in case the situation doesn't work out your way and you cannot stay in the country. They are probably not well versed in the ins-and-outs of the UK administration and ILR doesn't mean much for them. you might find yourself in a far better situation once you have a permanent visa.


Having read few blogs and few posts on the subject (non-Uk national myself, not living in UK either) it seems like a neat option is HSBC. they seem to be very flexible when it comes to mortgage for non-uk nationals. they have criteria (like you need to open an account with them and have your salary there for 3 months) but given your situation it might work. Unless again your visa situation becomes a show stopper for them too.


Another issue is probably the low value of the property you are trying to acquire. To make it worthwhile for many lenders for customers carrying a higher risk profile (like you - don't take it personally it has all to do with your administrative situation), lenders would require a minimum property value (or minimum mortgage value - sounds counter intuitive but it seems to work that way). So property below 100k GBP are going to limit your choice of lender even further.


Hope it helps and good luck with your investment anyway.



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