Buying a home in the UK as a visa holder can feel like a daunting challenge. The biggest question on most people’s minds? “How much deposit do I actually need?”
It’s a confusing, overwhelming process filled with misinformation and myths. But here’s the truth: You don’t always need a huge deposit to secure a mortgage. With the right knowledge and preparation, your dream of owning a home can become a reality.
Why Your Visa Type Matters
Mortgage lenders don’t treat all visa holders equally. The type of visa you have plays a big role in determining how much deposit you’ll need. Generally, the shorter or more temporary your visa, the higher your deposit requirement.
Deposit Requirements for Different Types of Visa Holders
|
Visa Type |
Minimum Deposit Required |
Approval Likelihood |
|
Indefinite Leave to Remain (ILR) |
5-10% |
High |
|
Skilled Worker Visa (Tier 2) |
10-25% |
Moderate to High |
|
Spouse Visa |
10-25% |
Moderate to High |
|
Graduate Visa |
15-25% |
Moderate |
|
Investor Visa |
5-10% |
High (if substantial funds are evident) |
|
Temporary Visa (e.g., Tier 5) |
20-25% |
Low to Moderate |
Note: These percentages are approximate and can vary based on individual circumstances and specific lender criteria.
Can You Get a Mortgage With a 5% Deposit?
For most visa holders, securing a mortgage with just a 5% deposit is challenging but not impossible. The key factors that influence approval include:
- Having Indefinite Leave to Remain (ILR) or Settled Status.
- Strong UK credit history.
- Stable employment and proof of income.
- Working with specialist lenders who accept smaller deposits.
Tip: Working with a mortgage broker who understands foreign national mortgages can significantly increase your chances of approval.
Strategies to Secure a Mortgage With a Smaller Deposit
If you don’t have a large deposit saved, here’s how you can still secure a mortgage:
- Build Your UK Credit History
- Register on the electoral roll.
- Apply for a UK credit card and make regular payments.
- Keep your credit utilisation below 30%.
- Pay all bills on time, including rent and utilities.
- Strengthen Your Application
- Provide proof of long-term employment.
- Have a detailed savings plan.
- Be prepared to provide extra documentation, such as references from employers or landlords.
- Explore Specialist Lenders
- Some lenders cater specifically to visa holders and accept lower deposits.
- These lenders may require higher interest rates but are often more flexible with approval criteria.
Real Experience from Trustpilot
“Being on a Skilled Worker Visa, I was told by most brokers I’d need a 25% deposit. But thanks to First Time Finance’s guidance, I managed to secure a mortgage with just 10%. The process was smooth and stress-free.” – Trustpilot Review
FAQs About Deposits for Visa Holders
- Can I get a mortgage if I’ve only been in the UK for a year?
- Yes, some lenders accept visa holders with 6-12 months of UK residency, provided they have stable employment and savings.
- What happens if my visa is due to expire soon?
- Lenders typically prefer visas with at least 12-24 months remaining. However, some specialist lenders may still consider you if you have strong financial stability.
- Can I use foreign income for a UK mortgage deposit?
- Some lenders accept foreign income, but you’ll need to provide thorough documentation proving the source of funds.
Final Thoughts: Make Your Homeownership Dream a Reality
The deposit requirement doesn’t have to be a barrier. With the right guidance, you can turn your dream of owning a home in the UK into reality. Whether you’re on a Skilled Worker Visa, Spouse Visa, or something else, there are options available.
Still have questions? Book a free consultation today.
