Halifax has become the latest lender to update its criteria for non-UK nationals.
The changes apply to all new applications from foreign nationals whether or not the country they are from is within the European Economic Area.
Permanent right to reside will be required for all applicants on cases which do not meet one of the following criteria:
- The customer (or either customer on a joint application) has lived in the UK for more than five years or
- The loan-to-value is less than or equal to 75 per cent or
- The income is greater than or equal to £100,000
When proof of permanent right to reside is required, brokers will be sent a message advising them to supply evidence for each applicant.
If any of the criteria above are met the message will not show and the application can proceed without proof of permanent right to reside being required.
As part of the EU Settlement Scheme EEA, EU and Swiss citizens, living in the UK by December 31 2020 can apply to continue to live in the UK after June 30 2021 and will receive one of two statuses which are both acceptable:
- Settled status (awarded where they have lived in UK for at least five years and also known as “indefinite leave to remain” under the EU Settlement Scheme’).
- Pre-settled status (awarded where lived in the UK for less than five years and they can re apply for settled status after five years continuous residence in UK has been reached).
Republic of Ireland citizens do not need to apply under the EU Settlement Scheme and have automatic permanent right to reside in the UK.
To determine if a customer has lived in the UK for more than five years Halifax will use data provided by credit reference agencies.
In some instances Halifax may require proof of residence in the UK for over five years.
When considering whether income is greater than or equal to £100,000, Halifax will look at both incomes on a joint application and will include basic, overtime, bonus and commission for employed applicants or the latest year’s income for self-employed customers, plus pension income.
The new criteria will apply to all full applications submitted from today.
