Nearly 200,000 people were granted UK settlement outside the EU Settlement Scheme in the year to June 2026, according to Home Office figures published yesterday. For some of those borrowers, the immigration milestone can have a second consequence: their mortgage eligibility may also have changed.
The Home Office recorded 199,628 settlement grants in the year ending June 2026, excluding immediate settlement and the separate EU Settlement Scheme settled-status figures.
That was up from 161,585 in the previous year, an increase of approximately 24%, and represented the highest annual level of settlement grants since 2011.
The increase is particularly relevant to mortgage lending because many of the people reaching settlement have spent several years living and working in Britain under time-limited immigration routes.
Some will already own property. Others may previously have investigated buying but found that their visa status restricted the lenders, maximum loan-to-value or deposit structures available to them.
Receiving Indefinite Leave to Remain can change that calculation.
What Has Changed?
Home Office figures published on 27 August show 199,628 settlement grants in the year ending June 2026, up 24% from 161,585 a year earlier.
Settlement following a work route increased 36% to 80,409, making work the most common category of immigration leave held immediately before settlement.
Indian nationals received 35,384 settlement grants, Hong Kong nationals 22,593 and Chinese nationals 21,300.
The financing relevance is straightforward: some mortgage lenders apply different criteria once a foreign-national borrower obtains permanent immigration status.
Settlement Grants Have Reached a 15-Year High
The Home Office defines settlement as being granted indefinite leave to enter or remain in the UK. It allows someone to stay permanently and, where eligible, subsequently apply for British citizenship.
The latest figures show a significant increase in people reaching that stage of their immigration journey.
Settlement grants outside the EU Settlement Scheme rose from 161,585 in the year ending June 2025 to 199,628 in the year ending June 2026.
The Home Office says this is the highest annual total since the year ending June 2011.
A major driver has been people who originally entered or remained in Britain through employment.
Settlement grants to individuals whose most recent leave was on a work route increased by 36% to 80,409.
This is a particularly relevant demographic for the mortgage market. Someone reaching settlement after several years on a skilled employment route may simultaneously have established a stronger UK credit history, increased their income, accumulated savings and built greater certainty around their long-term plans in Britain.
Indian Professionals Are the Largest Settlement Group
Indian nationals remained the largest nationality group receiving settlement during the latest reporting period.
The Home Office recorded 35,384 settlement grants to Indian nationals, an increase of 51% compared with the previous year.
The government attributes much of that growth to Indian nationals who entered Britain through work routes in earlier years and have now completed the qualifying period required for settlement.
That makes the data particularly relevant to internationally mobile professionals, technology workers, financial-services executives, doctors, entrepreneurs and other skilled employees who may have originally entered the UK on employer-sponsored visas.
For those who purchased property before obtaining ILR, the mortgage arranged at the time may reflect the restrictions that applied to their previous immigration status.
Once ILR has been granted, it can be worth checking whether those restrictions still apply.
Hong Kong BN(O) Households Are Now Reaching Settlement in Scale
Another major change in the figures comes from Hong Kong.
The Home Office recorded 22,593 settlement grants to Hong Kong nationals in the year ending June 2026, making them the second-largest nationality group.
The increase reflects the maturation of the British National (Overseas) visa route introduced in January 2021.
The Home Office says 38,373 BN(O) visa holders moved into settlement during the latest reporting period, compared with only 587 in the previous year, as the earliest cohorts reached the qualifying period of continuous residence.
This is potentially important for the property market because many BN(O) households have now spent several years establishing themselves financially in Britain.
Some may already own homes purchased shortly after arrival. Others may have deliberately delayed a larger purchase until their employment, residency or immigration position became more established.
For both groups, reaching settlement provides a logical point to review the mortgage market again.
Settlement Grants to Chinese Nationals Almost Quadrupled
The Home Office also recorded a sharp increase among Chinese nationals.
Settlement grants rose from 5,570 in the previous year to 21,300 in the year ending June 2026, almost four times the previous level.
The Home Office notes that the increases among Hong Kong and Chinese nationals together reflect the large cohort of BN(O) visa holders now completing the qualifying residence period.
For Willow, these numbers matter because they identify sizeable groups of internationally connected households whose eligibility profile may now be different from when they first arrived or first approached the UK mortgage market.
ILR Can Change How a Mortgage Lender Classifies the Borrower
The mortgage significance can be seen clearly in current HSBC intermediary criteria.
HSBC states that customers with Settled status, Indefinite Leave to Remain, Indefinite Leave to Enter or Right of Abode are processed under its standard residential lending criteria.
By contrast, applicants without those statuses can still be considered, but are subject to HSBC's foreign-national lending requirements.
Those criteria include conditions around residency or income, acceptable visa types and deposit source, together with a maximum 85% LTV.
That does not mean HSBC's policy represents the entire market. Lenders take different approaches to nationality, visa status, residency and permanent leave.
But it demonstrates the underlying principle: immigration status can be part of mortgage eligibility.
The Same Borrower Can Enter a Different Lending Universe
Consider an Indian technology executive who arrived in Britain several years ago on a Skilled Worker visa.
Three years ago, they purchased a London property while still holding time-limited immigration permission.
Their income was strong, but their immigration status meant some lenders were unavailable or imposed additional criteria. They may therefore have needed a larger deposit or chosen from a narrower product range.
Now assume the borrower has obtained ILR.
The property has not changed.
The borrower may still work for the same employer.
Their underlying income could even be broadly similar.
But one element of the underwriting profile has materially changed: their immigration permission is no longer time-limited.
At lenders that distinguish between permanent and time-limited immigration status, that can alter how the case is assessed.
When Should a Mortgage Be Re-Reviewed After ILR?
A fresh assessment can be particularly worthwhile where the original mortgage or enquiry involved:
- a maximum LTV restriction because the applicant did not hold ILR;
- a larger deposit than the client would otherwise have chosen;
- a restricted number of acceptable lenders;
- specialist rather than mainstream mortgage pricing;
- visa-duration requirements;
- restrictions around deposit source;
- a lower borrowing requirement because the original lender options were limited;
- a mortgage arranged while the client was on a Skilled Worker or other time-limited visa; or
- a property purchase postponed because suitable finance was unavailable.
Receiving ILR Does Not Automatically Mean the Mortgage Should Be Changed
There is an important distinction between having more options and needing to refinance immediately.
Obtaining ILR does not automatically make an existing mortgage unsuitable.
A borrower may already have a competitive rate. They may be inside a fixed-rate period with a substantial early repayment charge. Their current lender may already have offered terms broadly comparable with the wider market.
The purpose of an ILR mortgage review is therefore not to assume that a remortgage is required.
It is to establish whether the available market has changed sufficiently to justify doing anything.
Where a fixed rate is approaching expiry, however, the timing can be particularly useful because the borrower may now be able to approach the next refinancing decision from a materially different eligibility position.
The Opportunity Goes Beyond Remortgaging
A change in immigration status can also be relevant when the client's property ambitions have grown.
Someone who arrived in the UK five years ago may now be in a very different financial position.
Their career may have progressed substantially. Household income may have increased. They may have accumulated additional savings or investments and built several years of UK credit history.
At the same time, obtaining settlement can provide greater confidence that Britain is their long-term home.
The next mortgage discussion may therefore concern a larger property rather than simply refinancing the existing one.
For higher-income professionals, entrepreneurs and executives, that can mean moving from a first UK home into the £1 million-plus property market, where loan size, bonus income, international assets and private-bank options can become relevant alongside immigration status.
Capital Raising Can Also Become Worth Reconsidering
Foreign-national homeowners sometimes buy their first UK property with a larger deposit because the lending market available at the time requires it.
Several years later, that can leave substantial equity sitting in the property.
Once ILR has been obtained, the borrower may want to explore whether some of that equity can be released for another purpose.
Potential uses might include another property purchase, investment, home improvements or other legitimate capital requirements accepted by the relevant lender.
Whether capital raising is appropriate depends on affordability, property value, loan size, intended use and lender criteria.
But a borrower should not necessarily assume that the LTV restriction that applied when they first arrived in Britain still determines what is possible today.
A Previous Home Could Become a Buy-to-Let
Another common progression occurs when an internationally mobile household decides to move home but retain its existing property.
A client may have bought a flat shortly after arriving in Britain and now want a larger family home.
Instead of selling the first property, they may investigate whether it can be retained and refinanced as a buy-to-let.
That introduces a different set of considerations, including rental coverage, property type, tax advice, deposit or equity requirements and the affordability of the new residential purchase.
Immigration status remains relevant because lenders have different rules for foreign-national applicants across both residential and buy-to-let lending.
HSBC's published criteria, for example, state that customers with ILR, indefinite leave to enter, right of abode and certain settled-status categories can be processed under its standard buy-to-let lending criteria.
Again, lender policies differ, but the change in status can justify a fresh review.
High-Net-Worth Borrowers Can See a Wider Effect
For wealthier international clients, immigration status is only one part of a more complex lending profile.
The borrower may receive foreign-currency income, hold substantial assets overseas, own property in several jurisdictions or earn through bonuses, carried interest, partnership distributions or business ownership.
A client may also require a £1 million, £2 million or larger mortgage where private banks and specialist lenders become relevant.
Obtaining ILR does not remove those complexities.
But removing one underwriting restriction can make the overall case easier to place.
A borrower previously requiring a specialist foreign-national solution may now have access to lenders that assess them under their normal resident criteria, while other parts of the case continue to require specialist underwriting.
Immigration Lawyers Can Identify the Mortgage Trigger Before Anyone Else
The most interesting professional-introducer opportunity sits with immigration lawyers and advisers.
They know precisely when the client's immigration status changes.
A mortgage adviser often does not.
Someone can receive ILR years after their mortgage was arranged without ever considering that the event might have financing implications.
That creates an unusually clear point for coordinated professional advice.
The immigration adviser handles the immigration position.
Once settlement is granted, the mortgage adviser can establish whether the client's lending position has changed.
There is no need for the immigration lawyer to interpret mortgage criteria or recommend a lender.
The useful trigger is simply:
ILR granted → mortgage position reviewed.
Relocation and Global-Mobility Firms Have the Same Opportunity
Relocation businesses and global-mobility teams often remain connected to internationally mobile executives long after their initial move to Britain.
The latest Home Office figures show why the relationship can remain relevant several years later.
An executive initially helped into rented accommodation may subsequently buy a first home, obtain settlement and later move into a much higher-value property as their career progresses.
The mortgage requirement evolves alongside the immigration journey.
Employers with substantial international workforces may therefore also find value in making employees aware that receiving permanent status can justify revisiting earlier assumptions about UK mortgage availability.
Wealth Managers May Be Advising Clients Whose Mortgage Status Has Quietly Changed
The same issue can arise in wealth management.
A client may now have £1 million or more of investments under management while continuing to hold a mortgage arranged when they were subject to more restrictive foreign-national lending criteria.
Their wealth adviser may be reviewing investments, pensions, tax planning and long-term asset allocation without necessarily knowing that the mortgage market available to the client has changed.
A debt review can therefore complement the wider wealth discussion.
For some clients, the conclusion will be to leave the existing mortgage untouched.
For others, it may reveal opportunities to refinance, raise capital, change the repayment structure or fund another property without unnecessarily liquidating investment assets.
Not Every Form of Settlement Is Treated Identically by Every Lender
Mortgage policy should always be checked against the client's precise immigration status.
The Home Office statistics cover several forms of indefinite leave, while lender terminology and criteria can vary.
There can also be distinctions between ILR, indefinite leave to enter, settled status, pre-settled status, right of abode and applicants who continue to hold time-limited visas.
HSBC provides one current example of how a major lender distinguishes between those categories, but its approach should not be treated as a universal rule.
Other lenders may impose different residency periods, income thresholds, visa requirements, LTV limits or documentation requirements.
That is why the correct question is not simply whether the client “has ILR”.
It is which lenders now accept the client's complete circumstances.
An ILR Mortgage Re-Review Can Be Very Simple
For someone who already owns UK property, reviewing the position does not require an assumption that they should refinance.
The first stage is simply to compare the circumstances when the original mortgage was arranged with the position today.
That means establishing the client's current immigration status, income, property value, mortgage balance, existing rate, early repayment charges and future property plans.
The adviser can then assess whether the change in status materially alters lender choice or LTV.
If it does not, the client has lost little by checking.
If it does, the borrower can decide whether the wider options justify action now or should instead be considered when the existing mortgage deal expires.
The Home Office Data Creates a Genuine Mortgage Trigger Event
Most mortgage marketing is built around obvious financial events: a fixed rate expiring, a property being purchased or a client deciding to move home.
The latest settlement statistics highlight another trigger that is easy to overlook.
Almost 200,000 people moved into permanent settlement outside the EU Settlement Scheme during the latest 12-month period.
For tens of thousands of them, that change followed years spent in Britain on work or BN(O) routes.
Their immigration status may have improved at exactly the same time as their income, savings, credit history and property ambitions have developed.
The mortgage arranged when they first established themselves in the UK may therefore no longer reflect the market available to them.
The appropriate message is not that ILR guarantees a better mortgage.
It is much more precise:
If your immigration status has changed since your mortgage was arranged, your mortgage options deserve to be checked again.
Have You Received ILR Since Your Mortgage Was Arranged?
A mortgage arranged while you held a Skilled Worker visa or other time-limited immigration permission may have reflected lender and LTV restrictions that no longer apply in the same way once your status changes.
Willow Private Finance can review your current mortgage against the lending market available under your new immigration status, including options for remortgaging, moving home, capital raising and higher-value property purchases.
For international clients, we can also consider foreign income, overseas assets, complex remuneration and other factors alongside the immigration position rather than treating nationality or visa status in isolation.
Explore International Property Finance →Frequently Asked Questions
Receiving ILR can change how some mortgage lenders assess a foreign-national borrower, but the effect depends on the lender and the rest of the application.
Can getting Indefinite Leave to Remain change my mortgage options?
Yes, potentially. Some lenders distinguish between applicants with ILR or settled status and foreign nationals who remain subject to time-limited immigration permission. HSBC, for example, states that customers with ILR, indefinite leave to enter, settled status or right of abode are processed under its standard residential lending criteria. Policies differ between lenders.
Should I review my existing mortgage after receiving ILR?
It can be worth reviewing the position, particularly if your original mortgage was arranged while you held a time-limited visa and lender choice, LTV or deposit requirements were restricted. A review does not mean changing mortgage will necessarily be beneficial because rates, early repayment charges and the wider circumstances must also be considered.
Can a foreign national without ILR still get a UK mortgage?
Yes. Many lenders consider foreign nationals without ILR, although eligibility can depend on visa type, UK residency, income, deposit and other criteria. HSBC's current criteria, for example, permit qualifying applicants without ILR but impose specific conditions including a maximum 85% LTV.
Does ILR automatically mean I can borrow at a higher LTV?
No. ILR can remove an immigration-status restriction at some lenders, but maximum LTV will still depend on the lender's normal criteria, property, loan size, affordability and the applicant's circumstances. Receiving ILR does not guarantee a particular mortgage or borrowing level.
Can receiving ILR help if I want to move home or raise capital?
Potentially. If your immigration status previously restricted the lenders or products available, obtaining ILR can justify reassessing options for remortgaging, moving home, capital raising or other property plans. The effect depends on individual lender criteria and your wider financial position.