Despite the UK finally departing the European Union on 1 January 2021, the UK government has confirmed that the rights and status of EU, EEA and Swiss citizens living in the UK by 31 December 2020 will remain the same until 30 June 2021.
The EEA includes the EU countries as well as Iceland, Liechtenstein, and Norway.
EU residents looking to remain in the UK have to apply to the EU Settlement Scheme. Those who apply successfully will be able to continue living and working in the UK after 30 June 2021.
With changes to the status of EEA, EU, and Swiss nationals afoot, here’s what mortgage lenders will need to confirm in order to comply with both UK and European law post Brexit.
Prove evidence of your “settled” or “pre-settled” status
From this year, if you’re an EEA, EU, or Swiss national applying for a mortgage in the UK, you’ll need to provide evidence of your “settled” or “pre-settled” status under the EU Settlement Scheme.
- Settled status will usually be granted if you’ve lived in the UK for a continuous five-year period (called “continuous residence”).
- Pre-settled status is normally granted if you have not lived in the UK for five years in a row. You must have started living in the UK by 31 December 2020 unless you are applying as the existing close family member of an EU, EEA or Swiss citizen who started living here by then. You can stay in the UK for a further five years from the date you get pre-settled status and apply to switch to settled status as soon as you’ve had five years’ continuous residence.
The normal way that you will prove your settled or pre-settled status is by sharing your government website share code. This evidences your residency status.
Alternatively, if you have it, you can provide evidence of your permanent right to reside in the UK. You may also have to do this if you’re from a non-EU or EEA country.
How to get a “share code”
If you have settled or pre-settled status and you applied for a visa and used the “UK Immigration: ID Check” app to scan your identity document on your phone, you can use an online service to obtain a “share code”.
If you’re applying for a mortgage in the UK, you’ll need to provide this to the lender.
Head to the UK government website to obtain your code. You’ll need:
- Details of the identity document you used when you applied (your passport, national identity card, or biometric residence card or permit)
- Your date of birth
- Access to the mobile number or email address you used when you applied.
A note about Irish nationals
While EU, EEA, and Swiss nationals will need to prove their settled or pre-settled status using the share code, many lenders will not require the same for Irish nationals.
Many UK lenders have chosen to treat Irish nationals the same as UK nationals, and so you won’t have to prove your residency status in this way.
If you don’t have EU settlement status
If you’re an EU, EEA or Swiss national without an EU settlement status, or you’re from a nation outside the EU or EEA, it may still be possible for us to help you secure a mortgage in the UK.
We specialise in helping foreign nationals looking to buy in the UK. Read our useful blog or get in touch to find out how we can help you. Email [email protected] or call us on +44 (0) 20 3786 7270.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
