South Africans in the UK: How to get a UK mortgage

Can I get a mortgage if I’ve just moved to the UK?

A common misconception among newly arrived South Africans in the UK is that there is a two-year waiting period to apply for a mortgage. But buying a property sooner is possible if you understand the requirements and choose the right lender.

The UK has a competitive lending market with many high street banks offering mortgages to foreigners, although each has its own criteria.

Some lenders will consider lending in six months of your arrival if you have a larger deposit, often 25% or more. Others want proof of an annual income of more than £100,000 while there are those who will only consider you if your partner is British.

Navigating these requirements can be tricky, but with professional guidance, you can often secure a mortgage within six months of arriving in the UK.

Getting a UK mortgage if you’re a foreign national on a visa

Many South Africans come over on a five-year Ancestry visa, join their partner on a spousal visa or arrive on a working visa.

You can get a mortgage, even if you don't have a British spouse or partner. Some lenders would consider a 90% loan-to-value (LTV) which is a mortgage where the buyer makes a 10% deposit. Others may need the clients to have been in the UK for two years.

If you and your children are on a visa but have a British partner, it is still possible to secure a mortgage as the banks look at the family as a whole and will consider you as one applicant.

The key here is to make sure your credit score is high enough and you meet the bank’s lending criteria.

How to improve your UK credit score

British lenders are only concerned with your UK credit so building a credit history in the country will improve your mortgage options. Here is what you can do:

1. Get on the electoral register

You don’t necessarily have to be a citizen of the UK to vote. As South Africa is a qualifying Commonwealth country, you can vote in UK elections if you are over 18 and living in the UK.

The electoral roll lists the names and addresses of everyone who’s registered to vote. This is a key area for your credit score because it tells the government where you’re based and offers proof that you’re living at your address.

2. Get a UK bank account (and credit card)

The sooner you get a UK bank account after landing in the UK, the sooner you’ll be able to start building that credit score. Ideally, you want to get a credit card. A credit card is a great way of proving that you’re good at paying back debt. One of the best ways is to use your credit card like a debit card, to pay for all your day-to-day expenses, then have a direct debit standing order to pay off that outstanding credit card each month.

Understanding the UK mortgage process

In the UK, you’re only able to get an offer from a lender once they’ve been able to view and value the property and underwrite your circumstances. So that means you have to go searching for a property, get an offer accepted, and only then can you make an application. As a result, it can generally be between two to four weeks from application to potential offer.

This is one of a few ways that the UK mortgage system is different from South Africa’s, and it can be confusing when you first arrive in the country. We have a great deal of experience helping South Africans coming over to the UK and have a full understanding of both markets.

How our mortgage advisers can help you

We work with you to understand your unique circumstances and research your options before presenting you with a pool of lenders who are likely to offer you a mortgage and their various rates. We will advise you on what your monthly repayments are going to be, what term works for you and the long-term impact of the loan to truly find the most suitable option for you. While we cannot guarantee a mortgage, we can arm you with essential knowledge before you make an offer on a property and help you find the lenders who are most likely to give you what you need.

We are a mortgage brokerage and independent financial planning firm that specialises in whole-of-market, cross-border wealth advice. Our primary aim is to make your transition to UK property ownership as easy as possible by sourcing you the best deal with the highest chance of success. You can get in touch with our London and South African offices at +44 (0) 20 7759 7519 (UK), +27 (0) 21 657 1540 (SA) or by emailing us at mortgages@sableinternational.com