Getting A Joint Mortgage without ILR - Which banks?

Hi All,

My husband (british) and I have been excitedly waiting for our appointed to get our Decision in Principle for months now. When we went in for our appointment with Nationwide (our bank) we found the hiccup that because I don't have ILR they can't give us a joint mortgage without a 25% deposit. We certainly don't have 25%. Surprise surprise another annoying side effect of my immigration status...

We went to HSBC and they had a similar situation. Then we went to Barclays and they said yes, but I needed to have at least 2 years left on my VISA. I do, but I hit the 2 year mark Feb 3rd which is obviously a very short time to get an offer accepted and get the mortgage side of things sorted.

I called Lloyds yesterday and they are more flexible doing it on a case by case basis, but we won't be able to go talk to an underwriter until Saturday.

Does anyone have any banks they know accept less than 2 years on a VISA? Any advice is appreciated!

Thanks,
Maria

I haven't gone through it personally, but I believe others who have done it recommend using a mortgage broker, rather than trying individual banks.

A broker will be able to search all available mortgages from all banks and tell you which ones will be able to lend to you.

I'm British but when I was buying a house, I used a mortgage broker based in an estate agency - she got up a list of dozens of different mortgage options and then filtered them by my preferences and available funds.

A recent topic on this same subject:
http://talk.uk-yankee.com/index.php?topic=92028.0

Yup, mortgage broker all the way.  I think Halifax is the only major bank who will lend to someone on FLR.  Some of the smaller ones will too.  You'll pay a higher interest rate, need a decent down payment, and need at least a year left on your current visa.  But could still be worth while depending on the market in your area.

Try London and Country (L&C) mortgage broker.

Also try John Charcoal, they are big.

As usual in the UK, there's tons of ways to get ripped off.  Mortgage advisors recommended by real estate agents will rip you off, mortgage advisors will only tell you about offers that include a giant kick back for them, etcetera, etcetera. Do your research.
When I was in a similar position to you, we got a mortgage with a higher rate for the first few years, then later changed to a bank.

And different mortgage advisers will tell you different things, so if one sets an impossible requirement, go to another.  Some of the stuff above is the opposite of what our friends did (they're a couple years ahead of us in all of this so I get a lot of stories from them), they needed a 20% down payment and for the American wife to have been here for 2 years.  So they were approved when she only had 6 months left on her initial spouse visa and bought their house then.  Shop around until you find someone to work with you!

Also try John Charcoal, they are big.

Charcol. 

Charcol. 

See, I told you the Scottish are always persecuting me!

And different mortgage advisers will tell you different things, so if one sets an impossible requirement, go to another.  Some of the stuff above is the opposite of what our friends did (they're a couple years ahead of us in all of this so I get a lot of stories from them), they needed a 20% down payment and for the American wife to have been here for 2 years.  So they were approved when she only had 6 months left on her initial spouse visa and bought their house then.  Shop around until you find someone to work with you!

What year was it that your friends got their mortgage with 20% deposit and the wife on her spouse visa?  When my husband and I were mortgage-shopping, I was on my second FLR(M), and we were prepared for 20% deposit.  The banks were not interested in me or my income at all.  This was late 2015/early 2016.  We ended up re-figuring how much we could qualify for and dropping our budget considerably to exclude my income.  It was a harsh blow because finding suitable houses was already a challenge, and then to wipe tens of thousands of pounds from our price range very nearly broke my will.

Epilogue: But then we found House and we will fix him up and live happily ever after.  The end!

See, I told you the Scottish are always persecuting me!

gently chiding.

Thanks everyone for the lovely messages! They've been quite comforting.

We are currently thinking of finding our mortgage with London & Country (we've already had a chat with them) as we've heard lots of good things about them from various sources. After a bit of digging Halifax does in fact still lend to FLR folks as long as they have been in the UK for over 3 years (me!). So we do have some more options.

Feeling much less panicked now!

What year was it that your friends got their mortgage with 20% deposit and the wife on her spouse visa?  When my husband and I were mortgage-shopping, I was on my second FLR(M), and we were prepared for 20% deposit.  The banks were not interested in me or my income at all.  This was late 2015/early 2016.  We ended up re-figuring how much we could qualify for and dropping our budget considerably to exclude my income.  It was a harsh blow because finding suitable houses was already a challenge, and then to wipe tens of thousands of pounds from our price range very nearly broke my will.

Epilogue: But then we found House and we will fix him up and live happily ever after.  The end!

2016.  I believe they also had to lower the price range, she considers it to be a starter home and they want to sell in the next few years based on what she's said. 

2016.  I believe they also had to lower the price range, she considers it to be a starter home and they want to sell in the next few years based on what she's said.

Oh.  We got our mortgage approved in June 2016.  I wonder what rate they got...  Hmm.

Nevermind.  We found the house that we love (and will make better), and it kept us under budget because the banks didn't let us use all of the budget we were prepared to use... and that's good because my husband is still commuting more than a year after moving in.  This all worked out for the best.

We also "spent" way less than we were approved for.  I can't imagine how horrific our payment would be if we had taken out as much as they were willing to lend. 

I'm a big fan of living well within your means.   

I'm a big fan of living well within your means.   

Absolutely!  Back in my student days, I survived on debt.  But that's all behind me, now, and I love not having that burden.  Yes, we have a mortgage.  But as long as the housing market doesn't completely collapse (unlikely given the "housing crisis" over here), we have equity.  And some savings (UKVI and the house deposit took a chunk out of that, but I'm rebuilding).  I get anxious when I think about the financial stress I used to live with.  Never again!