"Banks that do consider these applicants often require them to meet additional hurdles regarding minimum income, the length of time they have been in the UK, or the time left on their visa"
Product changes can be about much more than rate updates and amendments to LTV ratios. At Hinckley & Rugby for Intermediaries, we regularly review our range of mortgage products and will make changes where necessary — often as a result of feedback from our broker partners — to ensure they continue to meet the needs of their clients. In some cases, these product enhancements can make a material difference to people’s ability to get on and move up the housing ladder.
This is certainly the case with the most recent update to Hinckley & Rugby’s skilled worker visa mortgage. These home loans are aimed at the thousands of workers that come to the UK each year, often to work in the NHS or social care sector, or to fill essential job vacancies where there are skill shortages in the UK.
Many of those who come to work in the UK on these visas choose to make the UK a more permanent home. However, they often struggle to get a mortgage from traditional high street lenders. Banks that do consider these applicants often require them to meet additional hurdles regarding minimum income, the length of time they have been in the UK, or the time left on their visa, which can make the practicalities of buying a home far more difficult.
Hinckley & Rugby is proud to offer a different approach, with home loans available up to 95% LTV to overseas workers in the UK on a skilled worker or health and care worker visa. No minimum income is required beyond normal affordability calculations, and there is no minimum residency requirement in the UK.
This mortgage range has been available since the start of this year. But although this is a relatively new product range, we have already updated the criteria to ensure it is offering value for money and meeting the specific needs of these borrowers.
As a result of the changes, Hinckley & Rugby is now accepting joint applications for its 95% LTV skilled worker visa mortgage, where the supporting applicant is on a spousal visa. Previously, such applications would have been capped at 80% LTV.
Many of these essential workers come to the UK with their spouses, aiming to build better lives for their families. This criteria update should enable more to get a foot on the housing ladder. This doesn’t just benefit overseas workers but should also help reduce pressure on local rental markets, particularly as many of these workers are reasonably high earners — the minimum salary for a skilled worker visa is £38,700 — so many may be in a position to buy if they can find the right finance deal.
At the same time, Hinckley & Rugby has also adjusted rates on these products, ensuring affordability for borrowers. For those wanting a 95% LTV loan, the five-year fix is now available at 6.29%. Those with a larger deposit can benefit from a five-year fix at 90% LTV, at 5.59%.
Two-year fixes are also available. For a maximum 95% LTV, this is priced at 6.79%, with 90% LTV at 6.35% and 80% LTV at 5.79%.
All these products are only available on a repayment basis. While Hinckley & Rugby will accept contractors, it is worth noting that it does not accept self-employed applicants for this mortgage.
As a building society, Hinckley & Rugby aims to help its members build more resilient financial futures. For many, a key part of this is being able to buy their own home, enabling them to move on from less secure tenure in short-term rented accommodation.
Our range of mortgage products helps make this a reality for workers across the UK — whether they were born here, or have moved to the UK to build better lives for themselves and their families.
