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Aussiepom

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Everything posted by Aussiepom

  1. Hi All, I've been reading posts for many months now where people have struggled with the restrictions around providing UK buy-to-let mortgages to UK expats in Australia. Largely the difficulties arise because the mortgage provider is required to be regulated both in the UK and Australia, meaning they need a presence in both countries. This significantly limits the size of the market. Prices for these products quoted to me by brokers have been much higher than equivalent products provided to UK residents. Further the broker fees have been in the thousands, not hundreds. This might be a familiar story for some of you, or at least it will become thus in the not too distant future. The good news is that I've just had a really positive experience on this front. After speaking to many brokers and being provided with higher level interest rates and exorbitant broker fees, i was able to find a solution that was equivalent to what i would pay and receive in UK. I've just completed on the mortgage. The answer was that I engaged directly with HSBC UK. The only difficulty was the fact that I had to do it all myself without a broker. On the flip side it gave me access to exactly the same products UK residents receive. In doing so i'm saving a lot of money and have been able to secure a long term fixed rate mortgage so I can carry on out here in Australia and not have to deal with this headache again for quite some time. To the details. HSBC offer 2 avenues for mortgages to Ex pats in Australia: The first route is via an Ex Pat mortgage through HSBC Expat. This one was prohibitive for us as it requires a certain amount of capital (i believe it was £60k+, maybe more) to set up an HSBC offshore expat account. This might be appropriate for someone with money sat around. The second route is via a regular buy-to-let mortgage route. The website link is here: https://www.hsbc.co.uk/1/2/mortgages/buy-to-let-mortgages Please note the eligibility criteria. Critically you need to have lived in the house at some point since you bought it for at least 6 months - so this mortgage doesn't suit you if you are an overseas landlord looking to buy an investment buy-to-let. Also when we applied as an overseas landlord the minimum annual salary requirement (single or joint, depending on the application), was £75k - although i cannot find the requirement on their website anymore so perhaps things have changed since we started the process in January. They also say that the rent must be 145% of the mortgage repayments. I'm not sure whether this has changed since we started our application but they were only looking for 145% of the interest portion of our capital repayment mortgage when we applied. The whole process took about 8 weeks from start to finish and it was painful because of the speed of mail and general lack of competence of some of HSBC staff. Note that we had to get some documents notarised here in Australia which cost about $150. The only document that we actually had to send by post was the signed mortgage deed. Everything else we were able to scan and send. We had our managing agent for the UK property issue the current tenancy agreement directly to the conveyancing company which was acceptable. This was a welcome relief to us, we are able to save at least £200 a month on what the brokers were quoting with this HSBC product, which over the long term is a really meaningful saving. I'd be more than happy to answer any questions or provide additional feedback on the process if anyone's interested. Cheers, The Ozzie Pom This post has been promoted to an article
  2. Aussiepom

    UK Buy to Let Mortgage Solution

    And for any of you who did take out an HSBC mortgage, take a look at this article. You may be able to save a big wad of £££
  3. Hi All, Those following UK media will know that due to changes of CGT rules for UK property, there's been a flurry of real estate transaction activity over the last few months. Mortgage companies have started significantly dropping their rates For those of you who followed my article from 2018 and are currently enjoying an HSBC mortgage. You may like to learn that 2 weeks ago HSBC performed some significant rate cuts. In fact they were so significant that the money saved by the rate cut was double the 'early exit fee' that was due because to switch meant breaking out from the fixed term early. The process is very simple you just to go the landing page of your HSBC Mortgage account. In there you'll see a 'Manage' button. Click that and you have the opportunity to "start a rate switch". It's pretty easy from there. Benefits = I save approximately £3k over 2 years I extend the mortgage term for an additional 5 years, so: No no more sleepless nights worrying how I'm going to find a low cost mortgage without having to deal with a broker and pay broker fees No effort in getting documents notarised No spending 4 weeks going back and forward with conveyancers No need to get the property re-valued Here's my original topic below (sorry i put it in Renting and Real Estate, @The Pom Queen i don't suppose you could please move it to Money and Finance) Enjoy
  4. Aussiepom

    UK Buy to Let Mortgage Solution

    I just thought i'd make a follow-up post here to highlight that it looks like HSBC have changed their rule again to allow for rental income level being 125% of amount repayable for basic rate tax payers rather than the 145% it was. This is significant because many of you in Australia will be on basic rate in the UK as you will only be counting UK property rental as your income. My 2018 experience was that they were only counting the interest portion for the 145%, not sure if this is changed. My original post is still valid. This is still a viable mortgage solution for expats that is significantly cheaper than any other solution available. If you satisfy the requirements it will be far far far cheaper than using a broker.
  5. Aussiepom

    UK mortgage while in Australia

    See this article here. It's an older thread but it's still relevant today.
  6. Aussiepom

    UK Buy to Let Mortgage Solution

    Really does depend on your long term objectives. We want to keep our UK property because we may want to use it in the distant future and we're quite happy with it slowly paying itself off. In terms of dealing with the headaches of renting. We use a fully managed letting service which means that all the annoying things get dealt with by the letting agent, we just have to cough up money when things change. It's no big deal for us and they're a trustworthy ARLA registered agent. The mortgage interest we pay is deductible here which is nice as it was being reduced just when we left the UK. In terms of income tax, we went through Alan Collett (and the firm he works with) for the Aussie returns, we do our own UK self assessment tax. Our only UK income is from property (total income is less than our joint UK tax free threshold) and it's pretty easy to do once you know how to do it.
  7. Aussiepom

    Remortgaging UK Property whilst in Auz?

    see my post above about UK buy to let mortgage solution. I got a UK highstreet mortgage here in Aus, paying a nice low interest rate and 400 quid in fees.
  8. Aussiepom

    UK Buy to Let Mortgage Solution

    HI There, I wrote an article about this approx 2 years go: At that time (and presumably now), subject to conditions, you are able to purchase a UK mortgage through HSBC. I.E. a product for the UK highstreetnot an expat through their expat division. I did have to hang up and call again a few times to get past idiots but it was possible and I wasn't the only one on this forum successful.
  9. Aussiepom

    Remortgaging UK Property whilst in Auz?

    It may be too late but I posted this in 2018:
  10. I may be too late here... but there is an option to get a BTL mortgage through HSBC and likely Barclays at UK interest rates. I’ve written an extensive guide in how to do this in 2018 when I remortgaged with HSBC.
  11. Aussiepom

    Rental income from UK

    Call HMRC. They're really good +44 161 931 9070 They will be able to help you with this one.
  12. Aussiepom

    Rental income from UK

    If you are a British citizen you will still have your UK tax free threshold. You may not have to pay tax in the UK if the property rental income (minus expenses) is less than your UK tax free threshold. Notwithstanding this you do need to submit a self assessment tax return containing the high level P&L details (you can do this on a 'cash basis'). If you've not registered for self assessment tax in the UK i'd hop to it quickly as you will be required to declare the income even if you do not pay tax on it. You will have to declare the Income in Australia and the chance are you will end up paying a little tax on it, so be prepared for this. Depending on the age of the property and recency of any major building work done to it, you may be able to get a depreciation report done, which can be treated as an expense in your P&L. All of this is relevant to the Australian tax return though (provided you're not obligated to pay tax in the UK due to being above the threshold)
  13. Aussiepom

    Bridging visa on 820/801

    The bridging Visa takes effect when the tourist visa expires as stated above. The key is to understand what makes it expire: If you enter Australia it expires 3 months from the date of entry. unless; You leave Australia and re-enter; in which case the 3 months will start again and expire at the end of 3 months This cycle will continue until the last date of entry, so theoretically the the last possible expiry date is roughly 1st may 2022 Bridging visa kicks in upon expiry so to get on to the bridging visa asap, then you'll need to stay in Australia (i.e. no trips to New Zealand, Bali, or wherever) for 3 months. The bridging VISA will give you work rights if your sponsor is an Australian citizen. You'll also be able to apply for medicare. (these were the facts 12 months ago, not sure if things are different now)
  14. Aussiepom

    UK Buy to Let Mortgage Solution

    Great Update QuantitySurveyor. Glad to see some positive progress. Wishing you all the best with it.
  15. Aussiepom

    UK Buy to Let Mortgage Solution

    I had previously been an HSBC customer but was not one at the time of application. It may be that my status as a previous customer eased the process of ID verification or AML requirements but i just don't know i'm afraid. Perhaps go in and have a chat with them, see what they say?
  16. Aussiepom

    Refused Need Help

    Haha, that's just too funny.
  17. Aussiepom

    Aussie tax on UK property

    I understand that if you are a British citizen, you should still be eligible for your tax free allowance (although you will be taxed on that in Australia). I believe if that if you have lived in the property for 6 months or more, you will not be treated as a foreign investor for mortgage purposes (unless you have multiple investment properties already) - and as such would be eligible to have standard UK style mortgage in Australia. I'm assuming this because the only mortgage provider which provides you a domestic style UK mortgage, if you apply from Australia as a tax resident of Australia is HSBC, and to offer you this mortgage they require that you have lived in the property for at least 6 months since you've owned it. I've made an extensive post about how I went about securing a mortgage with HSBC on my UK property whilst resident in Australia. Others in this forum are following suit as the ability to do this with HSBC is saving thousands for people. Note that i'm not sure depreciation is possible on old properties as they have been assumed to have depreciated already. Any new builds or renovations are eligible for depreciation but there are time limits.
  18. Aussiepom

    Aussie tax on UK property

    I think the answer to this will be down to whether you will be an Australian resident for Taxation purposes. If you are, then any income you earn worldwide will be subject to taxation here and subject to our taxation rules; unless of course you've been taxed already on it and there's an agreement in place (which there is). So if you are a tax resident here, then the question is down to whether the Australian taxation rules will permit you reduce your taxable income by your interest payments. Will you be eligible for the UK tax free threshold when you're in Australia?
  19. Aussiepom

    Telstra redundancies

    This isn't round one for Telstra. I have a friend who had been working there 10 years (also English) who was made redundant around this time last year. He got a stonking payout lucky bugger. Telstra is a massive business, I wonder where in the business those job cuts are coming from?
  20. Aussiepom

    Refused Need Help

    They make it easy by citing a bunch of things you need to cover in the response. When i say easy, you still need to put pen to paper and put the effort in, but you don't need to scratch your head thinking about which topics to cover. I do remember finding it exceedingly tedious.
  21. For us, we weren't engaged by them after submission for about 7 months after we submitted docs. We made our application from within Australia.
  22. Aussiepom

    Refused Need Help

    Having just been through this process i must say that both my wife (the PR applicant) and I (the sponsor) wrote 3 / 4 pages of relationship history each. Our witnesses did too. Our histories cited an extensive story of how we met, moved in, got married and highlighted the many things we did as a couple with other friends (all we could evidence from facebook etc). It's interesting to read that perhaps some people are not going to these lengths to justify their relationship, on the other hand i do wonder whether we were too detailed.
  23. My wife lodged in June 2017 for partner visa and she received PR in May this year. There was a medical but no interviews, we did however submit a pretty comprehensive story and we have plenty of evidence of a long term relationship, so i suspect they feel they didn't need to interview? After we submitted there was radio silence from them until about February this year and we then had a bunch of questions. The most annoying thing was that as the sponsor, they asked me to get a police check from the UK which ended up taking 2 months to arrive; i suspect the PR would have been awarded earlier if it had arrived sooner.
  24. Aussiepom

    Remortgaging UK Rental

    Great to hear that things are progressing. I recall the calls taking a while, they were very detailed. I remember thinking. during every call.. 'this seems to good to be true... at some point i'm going to find out that because i live in Australia i won't be eligible and someone hasn't read a rule in their call script', yet it was all good. I used their conveyancing firm. It was frustrating initially basically they use an intermediary. Once they connected me with the law firm it was pretty quick. For me, the only documentation i needed to send by snail mail was the witnessed mortgage form, for everything else they accepted electronic submission. Keen to see how it turns out for you. Good luck.
  25. Aussiepom

    Manly/Northern Beaches Meet up

    Hi, My wife and I live in Manly Vale. We're from London (although i'm originally from Sydney). We should hit up the Ivanhoe or something.
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