MPowered Mortgages has revamped its lending criteria for high-skilled foreign nationals on Tier 2 visas, reflecting its commitment to broadening access to the mortgage market. Recognising the challenges faced by this group, the lender has increased the loan-to-value (LTV) ratio to 90% for Tier 2 visa holders who have secured a job offer, a notable rise from the previous 85%.
In a significant policy shift, MPowered has removed the requirement for a minimum remaining visa period and no longer requires applicants to have a minimum income or to have resided in the UK for a specified time. This change aims to simplify the mortgage process for a section of the market that has traditionally been underserved.
MPowered’s product range now extends to various categories of foreign nationals, including those holding Tier 1 visas, Tier 2 high-skilled visas with job offers, and Tier 2 spousal dependent visa holders when applying alongside a Tier 2 visa holder with a job offer. The lender also accepts applicants with settled and pre-settled status under the EU Settlement Scheme.
Stuart Cheetham, CEO at MPowered Mortgages, said: “We are constantly looking to understand the market’s challenges, and our regular conversations with brokers have highlighted the considerable demand for foreign national loans.
“In response to this, we are delighted to follow up on last week’s rate reductions with new lending criteria for non-UK nationals, making it easier for borrowers in a traditionally more under-served section of the market to take their first step onto the property ladder.”
