Tier 2 Visa Mortgage for Filipino Nurses in United Kingdom

This guide will explore basic questions from Filipino nurses in United Kingdom with Tier 2 or Health and Care Visa about mortgage process.

Can I get a mortgage in United Kingdom on a Tier 2 or Health and Care Visa?

Yes, you don’t need indefinite leave to remain to secure a mortgage. Although you will likely come across stricter criteria, with your options from lenders generally more limited because of your visa status.

What are the initial steps on how to get a mortgage on a Health and Care visa?

1. Gather all of your documents together. We’ve gathered a list of general paperwork lenders might potentially require. Make sure to produce multiple copies because solicitor and mortgage advisor will require copies of their own.

• Proof of ID (Current passport and biometric residence permit)
• Last three months’ bank statements and payslips (must show your name and address)
• Latest three months bank statements showing your deposit funds (must show your name and address) 
• Proof of address (It can be utility bills documents, council tax bill, tenancy agreement, P60, or bank statements)

2. Check if you have a suitable credit score. Your credit rating tells lenders how likely they are to offer you a mortgage based on your past financial behaviour. Work towards improving your credit rating if you need to. Most lenders require at least two years of residency to have a strong credit score. Lenders should be able to trust that you can make the monthly repayments. You can check your credit rating using agencies online like Experian, Equifax and TransUnion.

3. Get in touch with a mortgage advisor to find a deal that’s right for you. They can search the market on your behalf based on your current visa and recommend one with the best interest rates. Your application will be dealt with faster because they will help you with your paperwork. They’ll be with you every step of the way during the mortgage process. They can also advise you on government schemes, like First Homes, and Mortgage Guarantee Schemes. You can find out which scheme is right for you by following this link: https://www.ownyourhome.gov.uk

What are mortgage-related fees to consider?

• House deposit- You’ll need at least 5% to 9.99% if using government scheme like Mortgage Guarantee Scheme. Most lenders will see us as a higher risk because we are foreign nationals. Hence, they’ll likely ask for a higher deposit as high as 25%. That is why it is important to get a competitive mortgage advisor so they can check which bank will offer bigger loan-to-value (LTV).
• Mortgage advisor fee-Some mortgage advisor won’t charge because they will receive commission from the lender. In any case, they will explain all the fees you’ll have to pay if you decide to work with them. Usual fees will be £200 to £300.
• Valuation fee – Lenders will carry out a valuation survey to the property to make sure that the asking price matches the real value of the property. Fee usually ranges from £200-£400.
• Solicitor fees- Legal fees for your solicitor will cost between £800 to £1,500 depending on the price of your property
• Land registry fee- Land Registry charges a fee to transfer their register property into your name. Fees will range up to £500 when you complete the property purchase.
• Stamp Duty fees- It is the tax you pay the government when you buy a property. You can calculate how much you need to pay using Stamp Duty Land Tax calculator:
  • https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
• House surveys- Getting a survey for a house or flat will avoid unnecessary surprises along the way. You will know the condition of the house and any hidden structural snags upfront. They will give you an idea of how much you might need to pay in a property after you buy it. Costs start at £500 depending on the property value.
• Moving or removal costs- Fees varies from £700-£1500 but if you have a car where you can pile up your belongings, fees will significantly be reduced.

How much time left on tier 2 visa does lenders want as mortgage requirements?

Depending on the specific lender, they want you to have ample time left on your visa. You’ll normally need a minimum of 12 months to 3 years remaining on your work visa.

Specific tips for Filipino nurses in United Kingdom:

Open Lifetime ISA as soon as possible. It is a tax-efficient way to save for a house deposit and the government adds 25% to your savings. More information can be found on:https://www.gov.uk/lifetime-isa

Choose a mortgage advisor that’s fee-free or the one that offers NHS discount.

Take advantage of government schemes to have lower mortgage deposit.

If you are on a single income, look into shared ownership mortgages for a more affordable route on entering the property ladder. You can read how shared ownership works here:https://www.gov.uk/shared-ownership-scheme

Always ask for discounts from estate agents in house buying. The worst they can say is no.

If you’re buying a new-build house, always ask for incentives, options voucher, or freebies from the developers before putting in your reservation fee. You can get free flooring, downlights, turf, or integrated kitchen appliances if you ask them nicely.