BNO Visa Mortgage

What is a BNO visa and how does it affect mortgage applications? 

BNO stands for British National Overseas – and it is effectively a visa that treats you as a British national. It entitles you to some of the rights that you’d have in the UK as a British citizen. 

It applies to people from outside the UK, and more specifically, Hong Kong. It’s part of an agreement between the UK and certain countries and locations overseas, including Hong Kong, that effectively entitles you to a British National visa.

How does a BNO visa mortgage application process differ from a standard mortgage application?

The big difference is that the banks and building societies that are willing to lend to you are probably more limited than for a straightforward British national. 

If you’re on a BNO visa you should be treated as a British national, but some of the criteria could limit you, depending on how long you’ve lived in the UK and what your credit footprint looks like here. 

Can you explain the eligibility criteria for a BNO visa mortgage? 

In short, you have to be 18 years of age or older, or your partner must be 18 years or older. You need to have applied to stay here for a period of time – it could be for two and a half years or five years typically. After that you can apply for permanent rights. 

The visa enables you to work or study in the UK. Typically if you’re applying from outside the UK, you would need to be living in Hong Kong. Obviously you don’t need to apply for it if you’re in the UK, Channel Islands or Isle of Man.

Are there any additional requirements or documentation needed for BNO Visa mortgage applications?

You’ll need the standard documents – things like proof of income, proof of ID and bank statements. Additional requirements may be involved depending on how long you’ve lived in the UK or whether you’re still living overseas in Hong Kong for example. 

Proving your address is quite important. A lot of lenders will usually do an electronic check. If you’re not currently living in the UK or you haven’t lived in the UK for very long, it’s a lot more difficult to find you electronically. In that case they will ask you for some kind of proof of address, even if you are currently in Hong Kong. 

You just need to prove you are where you say you are, which usually requires something like a bank statement or utility bill. In terms of additional requirements, the only other thing is a copy of your BNO visa. They’ll just want to check it over and verify that it’s genuine. They will also look at how long is left on the visa, when it started and what kind it is. 

What are the specific mortgage options available for BNO visa holders? Can you discuss any specific lenders or mortgage products in the market tailored for BNO visa holders?

This is where most people with BNO visas would need help – not all banks may assist you with a mortgage, depending on your time in the UK. Lenders have different criteria about that. You should be treated as a British national and from that perspective, lenders are more flexible in offering you a mortgage. 

But there can be a stumbling block if you’ve recently arrived in the UK to study or work. It could be due to your employment. So you’ll probably need help with this. There are specific banks that are more favourable. In terms of naming them, they’re changing all the time, so we encourage you to speak with a professional who deals with British National Overseas visas all the time. 

We’re experienced enough to understand your circumstances and look at your time in the UK, your employment and credit history to match you up with the most appropriate bank. It’s about seeking that advice, really.

Are there any differences in mortgage rates or terms for BNO visa holders compared to UK citizens?

There may be one or two lenders who do have a separate range of products for people with a BNO visa, but it’s unlikely. It’s much more likely that you’ll have access to the same products as anyone else. 

As long as you meet the qualifying criteria with the lender, which includes a full affordability assessment, you should be getting access to the same products as a UK national. Generally the lenders will look at you as an individual and will either lend to you or not. 

They tend not to be too specific with targeting products to certain types of people. There are one or two building societies who sometimes do that, but in our experience it’s more likely you’ll have access to the same products as anyone else.

What are the potential challenges or obstacles that BNO visa holders might face when applying for a mortgage?

The two biggest ones are time in the UK and credit history. A lot of mortgage lenders need you to have spent a specific period of time in the UK before they would consider a mortgage application. Typically, that might be two or three years.  Having said that, there are some banks that allow you to arrive in the UK within a month and still offer you a mortgage. 

Credit history is probably the biggest challenge, because if you’ve recently arrived into the UK it’s unlikely that you’ll have any credit footprint here. To help you overcome that, speak with a mortgage advisor to plan ahead on how to improve your credit score, if it’s not where it needs to be at the moment. 

Lenders can be flexible around time spent in the UK, so we can help you overcome the main obstacles.