If you’re from overseas and bringing your talents to the UK, you might dream of owning your place, so what’s holding back skilled worker visa holders from buying a home? Having a place to call home is deeply important to most Brits and many skilled foreign workers feel the same way.
There seems to be a reluctance among many UK financial institutions to provide mortgages to these individuals. Hinckley & Rugby Building Society questioned this hesitancy before starting to offer mortgage options to Skilled Worker and Health & Care Worker visa holders themselves.
“With the rental market under intense pressure, it makes no sense to refuse mortgage loans to skilled professionals who can afford them and who are dedicated to building their lives in our community.”
– Laura Sneddon – Hinckley & Rugby Building Society
It’s worth noting that Skilled Worker visa holders must earn at least £38,700 a year, which is above the UK average salary. Health & Care Worker visa holders have a lower salary threshold, but this group includes a broad spectrum of healthcare roles. So, money isn’t typically the issue.
Could the issue be with the term ‘visa’, which might imply a temporary stay to the lenders?
We should acknowledge the essential role of skilled foreign workers in the UK, particularly since nearly one-fifth of NHS staff are not UK nationals. Without these workers, essential services could be severely impacted.
The term ‘visa’ might wrongly suggest a short-term stay when in fact these residency permits can last up to five years, and many holders extend their stay and eventually settle in the UK permanently.
Government data from 2023 shows a substantial number of such visas and extensions granted, underscoring the lasting commitment of these workers to the UK.
So, for many, owning a home here is a long-term goal. Unfortunately, the few lenders willing to consider them often impose tough restrictions. Hinckley & Rugby, however, removes these obstacles with guarantees about income requirements, time spent in the UK, and time remaining on the visa.
This approach allows visa holders to invest in a home based on fiscal prudence and reasonable judgement, rather than on strict financial thresholds or residency duration. Moreover, they offer mortgages with up to 95% LTV to help these individuals.
With the rental market pushing its limits, denying mortgage loans to suitable, committed skilled professionals is irrational.
Whether they’re educating our kids or looking after the elderly, these workers are crucial to our national welfare and deserve the same opportunities as everyone else.