The product allows applicants without any UK credit history to secure a home loan
Nottingham Building Society has launched a new mortgage product tailored for foreign nationals working in the UK, addressing a significant gap in the market.
The new product was created in response to mortgage brokers who reported that current offerings are overly restrictive for skilled international workers seeking to buy a home in the UK.
The product requires no minimum residency period in the UK and also allows applicants without any UK credit history to secure a mortgage through a partnership with Nova Credit, a cross-border credit bureau. This enables brokers to access credit history from 13 countries, including India, the Philippines, Australia, the US, Canada, and several European nations.
The mortgage is available primarily to those on skilled worker or health and social care worker visas and features up to 90% loan-to-value (LTV). It imposes no minimum income or remaining visa duration requirements, making it highly accessible.
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Complete details of the new product can be found online through The Nottingham for Intermediaries website.
The product launch, the mutual said, coincides with rising numbers of foreign nationals entering the UK workforce, particularly in the healthcare and IT sectors. Last year, over 325,000 work visas were issued, with projections suggesting this could surpass half a million by 2028/2029. In 2023 alone, entry clearance visas saw a 36% increase from 2019 figures.
“This is a fantastic solution, one we know brokers have been crying out for,” said Alison Pallett, sales director at Nottingham Building Society. “We hope it will empower more borrowers from overseas to realise their homebuying dream in the UK, particularly those new to the UK who struggle to demonstrate their credit history.
“It’s 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 (pictured), chief lending officer at Nottingham Building Society, said that as a foreign national himself, he can affirm that trying to get a mortgage is far more complicated and frustrating than it should have been.
“It’s as if only 75% of me was allowed into the country – the UK was able to match my aspirations to earn a good living and play my part in supporting the economy, but I was unable to comfortably settle with my family,” he stated.
Subbramoney pointed out that thousands of others come to the UK to work, and the country has relied on skilled foreign workers in critical areas like healthcare and technology. However, many have also been unable to obtain a mortgage within the first two years of being in the country because of restrictive and inflexible lending criteria.
“The need to better support underserved segments of the market is central to our purpose as a forward-looking building society,” he said. “We are delighted to be able to now meet the evolving demands of people moving into the country, not just as a place to earn money, but to settle long-term, put down family roots and make the UK their home. That’s the role we believe a modern mutual should fulfil.
“It’s 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.”
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