The new product addresses a growing need from mortgage brokers who say current products are too restrictive when supporting skilled workers from overseas who are looking to borrow money to buy a home
Nottingham Building Society has introduced a new mortgage solution designed to support the growing number of foreign nationals who work in the UK and are looking to own a home.
The new product addresses a growing need from mortgage brokers who say current products are too restrictive when supporting skilled workers from overseas who are looking to borrow money to buy a home.
Most notably, it does not require borrowers to have spent any minimum length of time in the UK before applying.
The Society says a lack of credit history is one of the main reasons why foreign nationals, especially those who have been in the UK for less than a year, currently struggle to get a UK mortgage.
The Nottingham has partnered with cross-border credit bureau, Nova Credit, allowing mortgage brokers to access historic credit files in a growing number of countries worldwide, including India, Philippines, Australia, US, Canada, Germany, Austria, Spain, Switzerland, Mexico, Dominican Republic, Kenya and Korea.
Nottingham Building Society requires no minimum time of residency in the UK, no minimum time remaining on visas, no minimum income, no UK credit history, and will lend up to 90% loan-to-value (capped at 75% loan-to-value if a credit source cannot be found).
The product will primarily be available to borrowers entering the UK on a Skilled Worker or Health and Social Care Worker visa.
In 2023 alone, there were more than three million entry clearance visas granted, which represented a rise in work and study visas granted in 2023 (36%) when compared to 2019 (19%).
Alison Pallett, sales director at Nottingham Building Society, said: This is a fantastic solution, one we know brokers have been crying out for. We hope it will empower more borrowers from abroad to realise their home-buying dream in the UK, especially those new to the UK who struggle to demonstrate their credit history. It is an exciting step forward in our transformation journey as we continually look for innovative ways to support borrowers who currently find it difficult to obtain a mortgage.
Praven Subbramoney, chief lending officer at Nottingham Building Society, added: It is a proud moment for us to be able to introduce this exciting new product; one that will transform the homeownership prospects for the growing number of foreign nationals coming to live and work in the UK.
He added: Many thousands of people come to the UK to work and indeed, we rely on skilled foreign workers in critical areas such as healthcare and technology. But up until now many have been unable to obtain a mortgage within the first two years of being in the country because of restrictive and inflexible lending criteria. We want to change that.
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