Buying Property in the UK: Key Differences Between UK Citizens and Work Visa Holders

Buying a home in the UK is an exciting journey—but it’s rarely straightforward. The process varies significantly depending on your residency status, especially when comparing UK citizens to those living here on Work Visas or other temporary visas.

At Locus Keys, we often assist both groups, and we’ve seen first-hand how knowledge of these differences can empower buyers to navigate the market confidently and avoid costly pitfalls.

This comprehensive guide covers everything you need to know: from mortgages and deposits, through government schemes, documentation requirements, to investment considerations and practical advice.

1. Understanding Mortgage Approval: A Tale of Two Buyers

For UK Citizens

Lenders prefer lending to those with stable employment, good credit history, and proof of income. UK citizens usually fit this profile easily, since they have an established credit footprint and financial history within the UK system.

• Typical process:

  • Submit payslips, bank statements, P60s (end-of-year tax documents)

  • Provide credit reports demonstrating responsible credit use

  • Show proof of identification and address

UK citizens benefit from a large range of mortgage products, from fixed-rate to variable rate, buy-to-let, and government-backed schemes.

Example: Sarah, a UK citizen, applied for a mortgage with a 10% deposit on a £300,000 flat. Her steady job and 5-year credit history made her application smooth, and she was approved within weeks.

For Work Visa Holders and Other Visa Types

The mortgage journey is more nuanced here. Lenders scrutinise visa validity and employment stability because the risk of leaving the UK before the mortgage term is a concern for them.

• Key factors:

  • Visa duration remaining (usually 6–12 months minimum required)

  • Visa type (Work Visa, Student Visa, Spouse Visa, etc.)

  • Employment contract length and income stability

  • Credit history in the UK (often limited for new arrivals)

Many mainstream lenders have limited products for visa holders. This means fewer options, higher deposits, and sometimes higher interest rates.

Example: Ahmed is on a 3-year Work Visa with a 2-year contract. He applied for a mortgage with a 20% deposit. Some lenders rejected him due to visa length concerns, but a specialist broker found a lender who accepted his application.

Pro tip: Use a mortgage broker experienced with visa holders to explore specialist lenders and negotiate terms.

2. Deposits: How Much Will You Need?

Typical Deposits for UK Citizens

• 5% deposit: Often available through government schemes (e.g., Help to Buy) for first-time buyers.

• 10% to 15% deposit: More common for standard residential mortgages without schemes.

• Higher deposits (20%+): Usually secure better interest rates and may be required for buy-to-let mortgages.

Why deposits matter:

Deposits demonstrate your financial commitment and reduce the lender’s risk. The higher your deposit, the better your mortgage terms are likely to be.

Typical Deposits for Work Visa Holders and Other Visa Types

• Minimum 20% deposit: Many lenders require a larger deposit due to perceived risks.

• 25% or more: Some lenders demand even higher deposits, especially if your visa is short-term or you have limited UK credit history.

• No government schemes: Visa holders typically cannot use schemes that reduce deposits.

Practical advice:Start saving early, considering the higher deposit demands. A larger deposit not only improves your chances of mortgage approval but can also lower monthly repayments.

3. Eligibility for Government Schemes and Incentives

What UK Citizens Can Access

• Help to Buy Equity Loan: Government loans up to 20% to reduce mortgage size, available for new-build homes.

• Shared Ownership: Buy a share (usually 25-75%) of a property and pay rent on the rest.

• First-Time Buyer Stamp Duty Relief: Reduces upfront tax costs.

These schemes make home ownership more affordable and accessible for many UK citizens.

What Visa Holders Should Know

• Most government schemes require applicants to be UK citizens or have indefinite leave to remain (ILR).

• Temporary visa holders (Work Visas, Student Visas) are usually ineligible.

• If you have ILR or permanent residency, you may qualify for some schemes.

4. Documentation and Legal Requirements: Beyond the Usual Paperwork

UK Citizens

The usual documents suffice: ID, proof of address, income verification, and property survey reports.

Visa Holders

Additional documentation includes:

• Current visa and biometric residence permit (BRP).

• Proof of lawful stay and employment.

• Letters from employers verifying contracts and salaries.

• Sometimes, evidence of visa renewal or application for ILR.

Solicitors and conveyancers familiar with visa-related transactions can help ensure compliance and speed up the process.

5. Investment Considerations for Visa Holders

If you’re considering property as an investment or buy-to-let:

• Some visas restrict long-term rental activity or impose additional legal requirements.

• Lenders may be hesitant to offer buy-to-let mortgages for visa holders or charge higher interest rates.

• Rental income declarations and tax obligations should be clearly understood.

Tip: Consult an immigration specialist and financial advisor before investing.

6. Practical Tips and Strategies for Visa Holders Buying Property

• Work with specialists: Mortgage brokers, solicitors, and agents experienced with visa holders can unlock more options.

• Prepare a larger deposit: Expect to need at least 20%—start saving early.

• Maintain stable employment: Longer contracts and proof of consistent income strengthen applications.

• Keep documentation updated: Keep visa papers, BRPs, and employment letters current and ready.

• Plan for government scheme ineligibility: Look at alternative financing options or properties priced accordingly.

7. Frequently Asked Questions (FAQs)

Q: Can I buy a property in the UK while on a Work Visa?

A: Yes, Work Visa holders can buy property in the UK. However, mortgage lenders have stricter criteria for visa holders, including larger deposits and more documentation to prove visa status and income stability.

Q: How much deposit will I need if I’m on a Work Visa?

A: Deposits typically start at 20% and can be 25% or higher, depending on your visa length, employment status, and lender policies.

Q: Am I eligible for government schemes like Help to Buy or Shared Ownership on a Work Visa?

A: Generally, no. Most government schemes require applicants to be UK citizens or have indefinite leave to remain (ILR). Visa holders without ILR are usually ineligible.

Q: What types of mortgages are available for visa holders?

A: Visa holders usually have access to standard residential mortgages but may face restrictions on buy-to-let mortgages. Some specialist lenders cater specifically to non-UK residents and visa holders.

Q: How important is visa duration when applying for a mortgage?

A: Very important. Most lenders require your visa to be valid for at least 6 to 12 months beyond the mortgage application date. Longer visa validity increases your chances of approval.

Q: Can I get a mortgage if my visa is expiring soon?

A: It’s challenging. If your visa expires within a few months, lenders may decline your application. Having an ongoing application for visa renewal or indefinite leave to remain can help.

Q: Will my credit history in my home country help with mortgage approval?

A: Unfortunately, UK lenders typically only consider your UK credit history. A lack of UK credit history may mean higher deposits or use of specialist lenders.

Q: Are interest rates higher for visa holders?

A: Often, yes. Due to perceived higher risk, lenders may charge higher interest rates to visa holders compared to UK citizens with similar financial profiles.

Q: Can I use a guarantor to improve my mortgage chances?

A: Yes. Having a UK-based guarantor with strong credit and income can improve your chances of mortgage approval and may help reduce the deposit required.

Q: Can I buy property in the UK as an international buyer without a visa?

A: Yes, non-residents can buy property, but mortgage options are more limited, often requiring larger deposits (usually 25%+) and higher interest rates.

Q: What additional legal documents do visa holders need when buying a property?

A: In addition to usual documents (ID, proof of address), visa holders must provide valid visas, biometric residence permits (BRP)(now e-visa), employment contracts, and sometimes employer reference letters.

Q: Can I rent out my property if I’m on a Work Visa?

A: This depends on your visa conditions. Some visas restrict or prohibit buy-to-let activity. Check with an immigration advisor before renting out your property.

Q: How long does the property buying process take for visa holders?

A: It can take longer than for UK citizens, due to additional documentation and lender scrutiny. On average, expect 8 to 12 weeks from offer acceptance to completion.

Q: Can I get help with the property purchase process?

A: Absolutely. Specialist mortgage brokers, solicitors experienced in visa-holder transactions, and estate agents like Locus Keys can guide you through the process smoothly.

Conclusion

Buying a property in the UK is possible whether you are a UK citizen or on a Work Visa, but understanding the differences helps you prepare better.

UK citizens enjoy wider mortgage options, lower deposits, and access to government schemes. Visa holders face stricter lending criteria, higher deposits, and limited scheme eligibility, but with the right preparation and expert guidance, they can still achieve homeownership.

At Locus Keys, we’re here to help you every step of the way—offering expert advice, connections to mortgage brokers, and support tailored to your unique situation.