This morning Nationwide Building Society has announced that they will be introducing changes to their UK mortgage visa requirements. From today they will be making a reduction in the minimum visa validity period required for mortgage applications. The change, effective from Monday the 11th of December 2023, reflects Nationwide’s commitment to fostering inclusivity in the housing market. Under the updated guidelines, applicants without indefinite leave to remain in the UK now only need a minimum of 12 months remaining on their visa at the time of uploading the proof. This adjustment seeks to accommodate a broader range of individuals and acknowledges the diverse demographic of potential homebuyers.
Specific Rules For UK Mortgage Visa Requirements
For non-UK/ROI nationals seeking a mortgage with Nationwide, the following key points outline the revised criteria:
- Credit Scoring and Address History: All applicants are subject to credit scoring before a mortgage offer is extended. It’s imperative that applicants provide an acceptable full 3-year UK address history. The credit reference must cover all addresses for all parties within the last 3 years.
- Maximum Loan-to-Value (LTV) Ratio: The maximum LTV is set at 75% for applicants without indefinite leave to remain status. However, individuals holding EU Settlement Scheme (EUSS) pre-settled or settled status will be treated as having indefinite leave to remain.
- LTV Exception for Second Applicants: The 75% LTV limitation doesn’t apply if the second applicant is a non-UK/ROI national without indefinite leave to remain, and their income is not used on the application.
- Visa Validity: For applicants without indefinite leave to remain, a minimum of 12 months must remain on their visa at the time of uploading proof. This requirement stands even for those with a points-based visa.
- Residency Status Evidence: Applicants must provide evidence of their residency status through visa endorsements/stamps in a valid unexpired passport, a valid Biometric Residency Card (BRC), or Biometric Residence Permit (BRP).
- Income Verification: For applicants without ‘Indefinite Leave to Remain’ where income is not being utilized, the 12-month visa validity requirement is waived.
- BRP Expiry Date Exception: Biometric Residence Permit (BRP) holders with an expiry date of 31 December 2024 may still be eligible if they possess Home Office confirmation of permission to stay in the UK beyond this date, ensuring eligibility for at least 12 months.
It is essential to note that the exception for BRP expiry dates does not extend to Biometric Residence Card (BRC) holders or BRPs confirming Indefinite Leave to Remain/Settled status.
Speak To a UK Mortgage Visa Requirements Expert Broker
This move by Nationwide reflects a recognition of the changing landscape of the UK population and a commitment to providing more opportunities for homeownership. With more foreign nationals looking to settle and work in the UK, banks must become more accommodating to people on different visas or with different residency status. By adapting their visa requirements, Nationwide aims to create a more inclusive environment for prospective homebuyers, ultimately contributing to a more diverse and robust housing market. As the UK continues to evolve, such adjustments by financial institutions are vital in ensuring that everyone has a fair chance at securing their dream home. If you or someone you know is a foreign national on a visa and is looking to secure a mortgage in the UK, give our team a call today to see how we might be able to help.