Foreign National Acquires 10% Deposit Mortgage with Tier 2 Visa and Default
3 minute read
Acquiring a mortgage as a foreign national can be a tricky business, particularly when you have a history of negative credit – the most common reason for mortgage applicants being refused is a result of having adverse credit. A credit score and the history that it builds can be negatively affected by a number of factors and issues. Defaults or failures to pay the terms of a loan within a fixed time period, in particular often bring with them far-reaching financial consequences for mortgage applicants. However, whilst negative credit brings with it important ramifications when attempting to acquire a mortgage, it doesn’t necessarily mean an end to aspirations of securing a mortgage. A significant example of how negative credit is not necessarily the deal breaker that perception would suggest is one of Just’s case study customers; a foreign national with a tier 2 visa, who had a default from 2011, resultant of late payments on an unsecured credit commitment. The time left on her visa reflected a problem, as she was struggling to acquire a mortgage, which was compounded by the stresses of bad credit. We were not only able to place a mortgage on the high street, but also achieve a result that would have been considered extremely favourable, even without the history of bad credit looming over the situation. An extraordinary 10% deposit and being able to stay in the country at her leisure represented exactly the result that she desired. In this case, the mortgage broker’s expert knowledge was truly invaluable.
The Experts View
To get a mortgage with adverse credit can be a challenge at the best of times. The fact the client has less than 1 year on a tier 2 visa and a 10% deposit made things a lot more complicated. Lenders usually insist on bigger deposits for foreign nationals and for those with adverse credit. In this particular case, the client has been resident in the UK for a number of years and is visible to the lender via the credit reference agencies. This helped the lender build a profile of the client. The client had been in her current role for a number of years and the lender understood that getting the visa renewed would probably be a formality. This is one of those cases that I had to look at closely and with a different viewpoint then a simple ‘criteria are saying no’ mentality. I can imagine brokers with less experience would turn the case away from the outset. Writing it off before looking at it in depth. I was pleased to help this client, as I know they were under the impression that obtaining a mortgage for them would be near on impossible.
What the Client Said
We were delighted to be able to place a mortgage with such complex criteria, but we were even more delighted by the clients’ response: ‘I was very impressed by how quickly they managed to get an agreement in principle and really impressed with the competitive rate they found me. I was not expecting that. I initially thought it was going to be a lot more complicated than it actually turned out to be.’ The placement works to prove that negative finance and perceptions over what might prevent a mortgage application from being successful, are not always necessarily truthful. Approaching a mortgage application with an open mind is infinitely more likely to result in success then dwelling on the despair that is resultant. To discuss how Just Mortgage Brokers can assist with your mortgage needs, get in touch today.