Overseas-born borrowers gaining financial footing, but lender restrictions remain a hurdle
Mortgage brokers are anticipating a surge in enquiries from foreign nationals over the next 12 months, according to a survey by residential mortgage lender Gen H.
The poll of 295 brokers on the lender's panel found that 44% expect a slight or significant increase in such enquiries, while 37% reported already seeing a rise in foreign national business over the past year.
Brokers who already specialise in foreign national cases were more likely to report a significant increase.
Gen H linked the trend to the growing number of those who arrived in the UK following the expansion of the Skilled Worker visa route in 2022, many of whom have now built sufficient credit history and saved enough for a deposit.
Despite the rising demand, foreign nationals continue to face additional barriers to homeownership. Lenders commonly apply stricter eligibility criteria and lower maximum loan limits for overseas-born applicants. Most also require at least two years of UK credit and address history, and a minimum 25% deposit is standard across many foreign national mortgage products.
"These are telling numbers," said Sara Palmer (pictured right), sales and distribution director at Gen H. "It is very exciting that so many people who moved to the UK a few years ago are ready to buy a property and truly call this country home. We are already seeing this trend in action at Gen H, where nearly one-third of our applications have at least one foreign national applicant.
"Many lenders deem these aspiring homeowners to be inherently risky, but we know and mortgage brokers know that this isn't necessarily true – they are as creditworthy as people who are born here. As more foreign nationals begin exploring mortgage options, it will be up to brokers to make sure they've got lenders on hand who will work with them to say 'yes'."
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