Getting a mortgage in UK after living overseas

Hi all,

We have been back living in the UK for just over a year. We had a mortgage in AU and an excellent credit history, however none of this is taken into account when applying for a mortgage or for a rental property in the UK it would appear, as there are no reciprocal credit checks agreements (unless you've returned from living some place within the EU). Even if you were both born here and used to have mortgages here and have citizenship,it's like starting from scratch financially. We managed to secure a rental by paying 3 months advance rent each quarter, however when we initially applied for a mortgage we were told 'computer says no' as we had not lived in the country for the previous 3 years and did not have a recent credit history here (we did not keep UK bank accounts open when we lived in the UK, which with hindsight, would have been a good idea).

We are thinking of trying to apply for a mortgage once more as our landlord will be selling our rental property in Spring and we'd like a place of our own to call 'home' now that we're beginning to settle in the area we've chosen. We have registered in the electoral roll, I have a full-time, permanent job but the issue we're potentially concerned about is that my husband is self-employed. He will have 1 year's accounts soon (and had 5 years worth in AU). I'm just wondering therefore what your overall experiences have been in trying to secure a mortgage after returning to live in the UK (especially when one applicant is self-employed) -since the 2014 onwards tightened lending rules and how this affects returnee expats. Have you found a particular lender or broker helpful in this regard?

Cheers/thanks

Hi all,

 

We have been back living in the UK for just over a year. We had a mortgage in AU and an excellent credit history, however none of this is taken into account when applying for a mortgage or for a rental property in the UK it would appear, as there are no reciprocal credit checks agreements (unless you've returned from living some place within the EU). Even if you were both born here and used to have mortgages here and have citizenship,it's like starting from scratch financially. We managed to secure a rental by paying 3 months advance rent each quarter, however when we initially applied for a mortgage we were told 'computer says no' as we had not lived in the country for the previous 3 years and did not have a recent credit history here (we did not keep UK bank accounts open when we lived in the UK, which with hindsight, would have been a good idea).

 

We are thinking of trying to apply for a mortgage once more as our landlord will be selling our rental property in Spring and we'd like a place of our own to call 'home' now that we're beginning to settle in the area we've chosen. We have registered in the electoral roll, I have a full-time, permanent job but the issue we're potentially concerned about is that my husband is self-employed. He will have 1 year's accounts soon (and had 5 years worth in AU). I'm just wondering therefore what your overall experiences have been in trying to secure a mortgage after returning to live in the UK (especially when one applicant is self-employed) -since the 2014 onwards tightened lending rules and how this affects returnee expats. Have you found a particular lender or broker helpful in this regard?

Cheers/thanks

Hi

The banks in this country are completely paranoid about money laundering. We were in Benelux countries for 24 years and had to return for family reasons eight years ago. Luckily we were able to take early retirement and were able to manage without a mortgage. Plain sailing then? er no. We almost missed the deadline for completion on our house in Wales because the bank, having noted our last address, refused to realease funds from a UK building society cheque without 'knowing more about where the money came from.' - this at the eleventh hour, despite having assured me weeks earlier there would be no problem.

We also found it difficult to get any sort of credit agreement, despite having had salary paid into the UK bank account we kept open throughout our absence, and despite having a regular income.

The key period then was three years. Every form we looked at then had the catch phrase 'have you lived in your present home for less than three years.' and if you hadn't, it was more difficult. not impossible, but complicated.

I'm sure you can get round it, but you have to be really determined. A friend of ours got a mortgage through a broker but I'm afraid I don't have the contact details. I also know that some banks are more flexible than others, or so it seemed to me.

I really hope things have changed and that it wont be as difficult as all that for you, but be prepared to present payslips and bank statements etc etc. If I were you I'd sound out a broker and see what they say.

Good Luck!

Your biggest issue is likely to be the fact your husband is self employed. You usually need a minimum of 2 years tax returns/audited accounts before the income can be taken into consideration.

We got a mortgage with Halifax via broker after being back 9 months & we are both self-employed.

Think you should head to the Halifax then! Good luck

Think you should head to the Halifax then! Good luck

I would suggest going via a broker who specialises in self-employed clients, although ours is just a standard product that we could have applied for direct I do not think we would have got it direct.

Yes go and see a good broker, there have been lots of people on here that have gone back and got mortgages, it's not as difficult as it first seems. Financial institutions are rightly concerned about money laundering but once you prove things are legit you will be fine.

It sounds as if using a broker, is the way to start out with our best foot forward then... I'll share any helpful tips I gain during the application process, as you never know, these may be of help to others on the forum who are, or will be, in the same/similar situation.

Cheers all

I just posted a reply on 'Flake' thread re my experiences of getting a mortgage straight away after being in Australia for 29 years. Everyone seems to have a different experience depending on deposit size, income, etc.

The more I read posts like these, the more I think there must be a good potential business out there lending to ex-pats. The majority are highly skilled, very employable, have money in the bank and yet they struggle to borrow. When we came back we applied to my bank of nearly 30 years (including a long time as a staff member) for a credit card with a 1,000 pound limit... just wanted something to put flights on, build up credit etc.... completely out of the question. I ended up getting one of those ghastly 'credit builder' 34% jobbies. It is harsh as a professional to encounter such resistance - but seems to be experienced universally, irrespective of how much money or security you have. Meanwhile if you've lived here all your life on minimum wage, any number of people will throw money at you... perception of risk is the motivating factor..