Clydesdale Bank Enhances Foreign National Mortgage Lending Criteria: Greater Flexibility for Non-UK Borrowers

Introduction: Major Lending Policy Improvements for Foreign Nationals

Clydesdale Bank (part of Virgin Money) has announced significant updates to its foreign national mortgage lending policy. These changes, now live, are designed to provide greater flexibility for borrowers who do not hold indefinite leave to remain (ILR) or settled/pre-settled status in the UK.

With enhanced loan-to-value limits, broader visa acceptance, and reduced visa duration requirements, these updates open more opportunities for both residential and buy-to-let (BTL) applicants.

Key Mortgage Criteria Updates for Foreign Nationals

Clydesdale Bank’s latest criteria improvements offer several advantages to prospective UK homeowners and property investors who are foreign nationals:

• Up to 95% LTV on Joint Applications: For joint applicants where one person holds ILR, up to 95% loan-to-value (LTV) is available with no minimum income requirement.
• 85%-90% LTV Without ILR: For applicants where no one holds ILR, the bank will lend up to 85% LTV with no minimum income. If at least one earns £75,000, LTV increases to 90%.
• BTL Up to 80% LTV for Foreign Nationals: Buy-to-let mortgages are available up to 80% LTV. At least one applicant must be an owner-occupier; those without ILR need at least one applicant on a £75,000+ income. If any applicant holds ILR, there is no minimum income requirement.
• Visa Requirements Simplified: Only 9 months remaining on an acceptable visa are needed if an applicant’s income is being used. The acceptable visa list is now broader-see lender’s website for full details.
• Applicants with Settled/Pre-Settled Status: These applications are treated the same as if the applicant held ILR.
• Minimum UK Residency: All applicants – regardless of nationality – must have lived in the UK for at least 3 years.

Impact: Who Benefits from These Policy Changes?

These revised lending criteria mainly benefit:

• First-time buyers and home movers who are non-UK nationals on approved visas or with mixed-status joint applications.
• Buy-to-let landlords expanding portfolios, including those without ILR but strong UK-based incomes.
• Professionals on skilled worker visas (or similar), even if recently arrived in the UK (as long as three years’ UK residency is met).
• Joint applicants in multi-status households, where only one party may hold ILR or pre-settled status.

Recent Self-Employed Policy Improvements

Clydesdale Bank has also refined its approach to self-employed borrowers:

• Minimum trading period reduced to two years (previously three or more).
• Increased loan-to-income cap: Up to 5× income.
• Updated assessment for limited company directors’ incomes, enabling more flexibility in income recognition.

This makes Clydesdale especially attractive for entrepreneurial professionals and company directors seeking competitive remortgage rates or purchase finance.

Exclusive Promotions: Refer-a-Friend & Best Buy Mortgage Finder

Take advantage of the current refer-a-friend offer: receive a £30 Amazon voucher if your referral completes a mortgage through Deal Direct Financial Solutions. Simply provide your friend’s name and contact information, and our expert advisers will take care of the rest.

Searching for the most competitive fixed or tracker remortgage rates? Check our daily updated best buy tables for the latest exclusives from across the whole market, including Clydesdale Bank products.

Why Choose Clydesdale Bank for Your UK Mortgage?

• Flexible criteria for foreign nationals and self-employed applicants
• High LTVs available for both residential and BTL mortgages
• No minimum income required in several scenarios, unlike many competitors
• Broadening visa acceptance, helping more new arrivals secure UK property finance
• Consistently competitive UK mortgage rates for first-time buyers, home movers, and landlords
• Expert broker support for complex or unusual circumstances

Conclusion: Take Action for Personalised Mortgage Advice

If you are a foreign national, self-employed, or have a complex profile, Clydesdale Bank’s new lending criteria could make it easier to secure the mortgage you need. For tailored advice, eligibility checks, and to discuss your options, call our expert advisers on 0800 048 8828 or email us today. Act quickly – rates and criteria may be subject to change.

Frequently Asked Questions (FAQs)

1. Who qualifies for Clydesdale Bank’s new foreign national mortgage products?
   Applicants on acceptable visas (with at least nine months left), settled/pre-settled status, or joint applications with one ILR holder. All must have lived in the UK for three years.
2. How does a higher LTV impact my deposit requirements?
   Higher LTV means a lower deposit is required—even as little as 5% for joint applicants with one ILR holder.
3. Are buy-to-let mortgages available for foreign nationals?
   Yes. Up to 80% LTV is available, with specific income and owner-occupier requirements tailored to visa status.
4. How do I find out if my visa is acceptable?
   Contact our advisers or visit Clydesdale Bank’s website for the latest list of accepted UK visa types.
5. Is Clydesdale suitable for self-employed applicants?
   Yes – now requiring only two years’ trading history, and offering up to 5× income for eligible directors and the self-employed.