Good to know that we actually do not qualify for the fiancee visa.
Yes - I would get on and withdraw the application now and get all your documents back. You don't know when they will actually start processing the visa again, and you're not going to get it anyway, so it's not worth them keeping the documents.
Also, if you withdraw before the decision is made, then no harm done (other than losing the visa fee), but if the visa is processed and refused, then that will be on her permanent immigration record, along with the refused entry.
Since I am a EU member, I live in the UK and I have a job in the UK, I assumed I was automatically considered permanent resident but I see I was wrong.
No, unfortunately, you don't gain permanent residence status until you have lived and worked in the UK for 5 years (although it is automatic). Then once you have held permanent residence for 12 months after that, you can apply for UK citizenship.
As an EU citizen it doesn't affect a whole lot though, other than being able to sponsor a UK visa, because you already have access to public funds.
On a fiance and spousal visa though, there is no access to public funds for 5 years, until you get permanent residence.
Actually we just withdraw our application for getting a second passport but we were planning to re-apply again.
Re-apply again for what? A second passport?
It's not needed - just withdraw the visa application, and you'll get her normal passport back...they should return it, and her documents, within 20 working days. Then you can decide what option you will go for next (either marriage and an EEA family permit, or perhaps a student visa).
Plus a second passport will still have the information from her refused entry because it's all on their computer systems, and she will still need to apply for a visa before trying to enter the UK again.
You can still apply for a visitor visa for her (although it can depend on the reason for her refusal), but she would need to apply in advance in the US, and have lots and lots of evidence that she was a genuine visitor, including having a job and a home to return to in the US, and that she had no intention of living in the UK.
At this point we better consult with a lawyer and see all the alternatives. As someone mentioned, my girlfriend can potentially apply for a student visa and maybe there are other ways we are missing.
The only ways are:
- get married and apply for an EEA family permit (currently only takes 1-2 weeks for processing in NYC, or you can pay $150 for faster processing - about 48 hours).
- she can get a student visa (she would need the first year of tuition fees and either £7,200 or £9,000 in living costs... so about £25,000 available to her in order to apply).
- she can try to get sponsorship for a work visa (can be very difficult to qualify for unless she works in an in-demand shortage profession or a highly-skilled profession)