Nottingham Building Society has introduced a new mortgage product designed specifically to aid foreign nationals working in the UK in their quest to own a home. This innovative offering comes as a response to the unique challenges faced by skilled workers from abroad when attempting to navigate the UK mortgage landscape.
The mortgage is tailored for individuals who are in the UK on a Skilled Worker or Health and Social Care Worker visa. It aims to address and alleviate the common hurdles these workers face, particularly around the stringent requirements typically encountered in the mortgage application process.
No Minimum UK Residency Requirement
One of the most significant aspects of this new mortgage product is that it does not require applicants to have spent a minimum amount of time in the UK before they can apply. This feature is unique to The Nottingham, setting it apart from other UK mortgage providers.
Overcoming Credit History Challenges
A major obstacle for foreign nationals seeking mortgages in the UK has been establishing a sufficient credit history. Recognising this, The Nottingham has partnered with Nova Credit, a cross-border credit bureau, to facilitate access to international credit files. This partnership enables mortgage brokers to retrieve historical credit data from several countries worldwide, including major nations like the USA, Canada, Australia, India, and several European countries, thereby simplifying the credit verification process for applicants.
High Demand and Market Potential
This new mortgage product is not only timely but also meets a growing demand. Brokers across the UK have noted a significant interest from overseas borrowers, underpinned by recent data showing robust search activity for mortgage solutions tailored to foreign nationals. The demand is particularly pronounced in sectors like healthcare and IT, where a substantial portion of the workforce comprises non-British nationals. For instance, nearly one-fifth of all NHS staff come from overseas.
Statistics Speak
Supporting this demand, the UK has seen an impressive increase in the number of work and study visas issued, with over three million entry clearance visas granted in 2023. This represents a 36% increase compared to 2019, indicating a robust influx of skilled workers. Furthermore, the Home Office anticipates that work visa issuances could surpass half a million annually by 2028/2029.
Industry Perspectives
Alison Pallett, Sales Director at Nottingham Building Society, emphasised the significance of this mortgage solution, highlighting it as a critical step forward in their transformation journey aimed at supporting borrowers who traditionally face difficulties in securing mortgages. Danny Belton, Head of Lending at Mortgage Advice Bureau, also praised Nottingham’s approach, acknowledging the challenges foreign nationals face in finding suitable living arrangements in the UK and lauding the Building Society for its pragmatic and leading solution.