Published 2026-07-19 · Visa Mortgage Guide · Written and reviewed by Phillip Wakeling-Smith (CeMAP)

Earned settlement and the 10-year ILR plan: what it means for your mortgage (tracker)

Quick answer: The government has confirmed in principle that it intends to replace the standard 5-year route to indefinite leave to remain with a 10-year "earned settlement" model — but as of July 2026 the rules have not changed. The consultation closed in February 2026 (over 200,000 responses), the formal response has not yet been published, and the main changes are expected to be laid before Parliament later in 2026, possibly autumn. For mortgages, the stakes are real: ILR is the single biggest unlock in visa-holder lending — at some lenders it moves the maximum LTV by 20 percentage points — so when you reach it changes what you can borrow and when. This page tracks what's confirmed and what it means for planning; we'll update it as rules land.

Last reviewed 19 July 2026. This is mortgage-planning information, not immigration advice — for how the changes affect your specific route, speak to an immigration adviser.

What's confirmed so far

• Consultation ran 20 November 2025 – 12 February 2026 ("A Fairer Pathway to Settlement"), drawing more than 200,000 responses.
• February 2026: the government confirmed it intends to proceed in principle with earned settlement — a standard 10-year qualifying period, with the possibility of earning a shorter route through contribution-based criteria.
• Nothing is in force yet. The existing 5-year and 10-year routes still apply today. Immigration Rules changes are expected to be laid later in 2026.

What's NOT yet known

• The final qualifying periods, and which contribution criteria shorten them.
• Transitional arrangements — whether people already on a 5-year route keep their existing timeline. This is the question that matters most for planning and it is unanswered.
• Exact commencement dates.

Why this matters for your mortgage

Lenders don't lend against your future ILR date — they assess the status you hold on application day. But your settlement timeline shapes the whole strategy:

• The LTV unlock moves. Without ILR, several major lenders cap visa holders at 75% LTV; with it, the cap can jump to 90–95%. Our ILR mortgage unlock table shows the exact before/after figure at every lender we track. If your unlock date moves from 2028 to 2033, the years you'd spend on a bigger deposit requirement — or on specialist rates — stretch with it.
• Deposit maths changes. Buyers who planned to wait for ILR to buy with 5–10% down may now face a choice: buy sooner at a lower LTV with a bigger deposit (see deposits per lender), or wait substantially longer. Waiting has costs too — rent, and house-price movement.
• Remortgage plans built on "I'll have ILR by then" need a rethink. A common plan is buying on a visa-holder deal, then remortgaging onto mainstream rates at ILR. If your timeline doubles, stress-test the plan against holding the specialist deal for longer.
• Existing mortgages are safe. A rule change does not touch a mortgage you already hold — lenders don't recall loans because a settlement date moved. The impact is on future borrowing and remortgaging.

Sensible moves while the rules are unsettled

1. Don't build a purchase plan that only works on the 5-year timeline if you haven't applied for settlement yet — model both timelines with the visa timeline planner.
2. Know your buy-now numbers. Check what's available on your current status — which lenders would consider you and at what deposit — so "wait for ILR" is a choice, not an assumption.
3. If you're close to qualifying under current rules, take proper immigration advice promptly. Whether applications lodged before commencement keep the old timeline is exactly the kind of transitional detail that will matter.
4. Watch this page. We'll update it when the consultation response and the Immigration Rules changes are published.

How this relates to the existing 10-year route

The UK already has a 10-year long residence route to ILR — our 10-year ILR rule guide covers mortgages on that route today. Earned settlement is different: it would make ten years the standard qualifying period for most work and family routes, rather than a fallback for people with mixed immigration histories.

FAQ

Has the 10-year ILR rule actually come into force?

No. As of July 2026 the 5-year routes still operate. The government has confirmed its intention in principle; the formal consultation response and rule changes are still awaited, with the main changes expected later in 2026.

Will the change affect people already in the UK on a 5-year route?

Unknown — transitional arrangements haven't been published. This is the single most important open question. If you're part-way through a qualifying period, get immigration advice rather than assuming either outcome.

Does a longer route to ILR mean I can't get a mortgage?

No. Plenty of lenders lend to visa holders without ILR — the difference is deposit size, lender choice and sometimes rate. What a longer route changes is how long you'd operate under those tighter terms before the ILR unlock applies to you.

Should I buy now or wait for ILR?

There's no universal answer — it's the trade-off between buying at a lower LTV now (bigger deposit, fewer lenders) and the cost of waiting longer than you may have originally planned. Run your actual numbers: the eligibility checker for who'd lend today, the deposit calculator for what it takes, and the affordability check for how much.