44% of brokers anticipate increase in foreign national cases

A recent survey by Gen H found that mortgage brokers on its panel expect an imminent uptick in mortgage enquiries involving someone who was born outside the UK. 

44% of respondents expected a slight or significant increase in foreign national enquiries over the next 12 months; 37% of respondents reported already experiencing a slight or significant increase in foreign national business over the past 12 months. 

Brokers who already specialise in foreign national business were more likely to report a significant increase. This trend reflects the maturation of the cohort who immigrated to the UK after the expansion of the skilled worker visa route in 2022. Four years on, they have the credit history and the deposit saved to set down roots – but the hard part isn’t over.

Foreign nationals often face extra barriers to homeownership: mortgage lenders often impose extra restrictions on eligibility and maximum loans. Mortgage lenders also typically require those born outside the UK to hold at least two years’ UK credit and address history; the typical foreign national mortgage product also requires at least a 25% deposit. 

Sara Palmer, sales and distribution director at Gen H, said: “These are telling numbers. 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’.”