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Can a Foreign National Apply For A Mortgage Jointly With A British Applicant?

When you submit a joint mortgage application as British and non-British applicants, lenders would conduct specific underwriting for each applicant. There could be several advantages of submitting a mortgage application in this manner compared to a joint application by two foreign nationals. When you have at least one British national or one with permanent rights to reside in the UK, you have an edge over certain lending criteria.

For example, if you are applying for a mortgage with 10% deposit, applicants without permanent rights to reside in the UK require to show 3 to 5 years of residence history in the UK. However, if you are applying jointly with a British national, you could apply for mortgage within one years since your arrival in the UK. There are similar advantages you could gain by applying for mortgage on a joint basis.

Better credit history and records

There is a good chance that the British national has a solid credit record in the UK compared to someone recently moved to the country. If the lead applicant has maintained the credit score without having adverse credit such as county court judgements (CCJ), individual voluntary agreements (IVA), bankruptcy, default payments, missed utility payments, huge credit card balance etc.

The maximum loan amount affordability

When considering a joint mortgage, there are a number of factors that will impact your eligibility and therefore your choice of product, whether you’re married or looking for a joint mortgage unmarried, and we will provide you with information about each of these.

Deposit: How much you have between you. Most lenders ask for at least 10% of the property’s value for a residential mortgage, but putting down more can help you secure a superior interest rate

Affordability: Are your combined incomes high enough to cover the mortgage payments plus the monthly interest?

Credit history: Having clean credit is always a bonus, but there are specialist lenders for people with various types of bad credit.

Property type: Anything that isn’t made from bricks and mortar might call for a specialist lender, as might a unique or unusual type of building.

Employment: Some lenders prefer customers in secure, full-time employment, but there are a range of mortgage providers who specialise in self-employed applicants

Personal circumstances: Other factors such as your outgoings may be taken into account. Significant financial commitments besides your mortgage could impact the amount you’re able to borrow.

How to apply for a joint mortgage?

A joint mortgage is a type of mortgage that enables two or more people to buy a property together, sharing the equity in it as well as the responsibility for the mortgage payments.

All the individuals named on the mortgage are responsible for making repayments in full, every month. During the house buying process you can also decide between you how to share the equity in the property, an area we will cover in more detail later in this article.

The process of taking out a joint mortgage is the same as if you were buying a property on your own, i.e. sole mortgage. However, the other people named on the joint mortgage must sign all of the documents, meet with the solicitors and be involved with every other step of the process

When two or more people own a home, either as a joint tenancy or tenancy in common, each person owns a share of the entire property. This means that specific areas of the house are not owned by one individual, but instead, are shared as a whole. While joint tenants are similar to tenants in common in many ways, particularly with regard to their right of possession to a given property, there are some important differences.

Tenancy in Common

While none of the owners may claim a specific area of the property, tenants in common may have unequal shares and different ownership interests. For instance, Tenant A and Tenant B may each own 25% of the home, while Tenant C owns 50%. Tenancies in common also may be obtained at different times, so an individual may get an interest in the property years after one or more other individuals have entered into a tenancy in common ownership.

Joint Tenancy

Joint tenants, on the other hand, must obtain equal shares of the property with the same deed, at the same time. The terms of either a joint tenancy or tenancy in common are outlined in the deed, title, or other legally binding property ownership document. The default ownership for married couples is joint tenancy in some states, and tenancy in common in others.

Overall, the applicants can speak to a mortgage adviser to understand the implications of joint mortgages and having British and non-British applicants as property owners. Lenders would perceive joint mortgage as less risky compared to single mortgage applicants. It is important to find a suitable lender if you have a foreign national as an applicant. 

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing any other debts against your home.

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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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