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Mortgages in the UK


jen85

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Hi All

 

I am going over to the UK in March this year and wanting to know the experiences of others who have moved back and bought houses right away. We have a large deposit but still need to borrow a little more, about 50% of the house price. I've been told by one bank there that I cannot borrow unless I have been in the country for 3 years? how do others do it then, not everyone has all the cash to buy straight up.

 

Any ideas would be helpful.

 

Thanks

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I think i had read on here you can have problems if you have been out of the country for a few years, i think thats why most people seem to rent for a while if they had no house there to go back to. Hopefully someone who has moved back will know up to date info and be along soon.

 

Cal x

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We got back to the UK at Xmas, and are in exactly the same position: large deposit, but not large enough for a cash purchase. And yes, it's a problem. :(

 

Banks in the UK are very fussy lenders these days, and having a large deposit isn't enough to convince them you're worthy of a mortgage. Whatever employment history you can provide from Australia isn't relevant; whatever you earnt in Australia isn't relevant; whatever UK credit history you had before you left isn't relevant (ours was fine, and we were only away 2 years) and nor is your Australian credit history. What they want is a history of UK residence and employment, demonstrated by your P60s. Basically you tick none of the boxes.

 

We went to a specialist broker who tried various weird and wonderful lending institutions. He got most interest from the international credit banks, who are like less likely to be phased by getting overseas tax returns, credit references, etc. But he still got no offers for us, and even if he had, the rates they wanted were off the scale.

 

We've given up and resigned ourselves to renting for a couple of years.

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We are kind of lucky as we kept a house in the UK whilst we were in Australia so are at least not renting but we had bought it as a 'buy to let' and it's not a family-sized home, we only planned on staying a few months but have also faced the mortgage conundrum. I thought is was because I am a company director rather than an employee and don't have a years books - in the past it would have been possible to get a self-certified mortgage but not now.

 

I have been told once we have been back a year that Halifax would loan us so that may be worth investigating (although this is a product that they do for directors so may be specific to that)

 

One thing that someone not yet moved back could do is look at 'ex-pat' mortgages - HSBC and Kent Relliance I know do them. Lending is based on your income whilst you are still working in Australia. I don't think they are aimed at people moving back so you might want to keep quiet about that - they are more about people investing in their home country (like a lot of ex-pats in the Middle East investing in London). Might be an option though.

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So he said it can be done but depends on the lender. they are obviously always nervy if there's no financial history, but it'll be a judgement call. a 50% deposit will help though. If you've kept bank accounts open here that will too. If you want his details let me know and i'll pm them to you.

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Hi we moved back 7 months ago. Most lenders wouldn't lend us any mortgage, even the bank we had a buy to let mortgage with while in Oz for 5.5 years. However with a broker we found the Halifax have lent us the necessary to put an offer on a house. It is tricky, my best advice would be to get a broker as they know where to look and save a lot of hassle and time .

Edited by MrsLZB
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So he said it can be done but depends on the lender. they are obviously always nervy if there's no financial history, but it'll be a judgement call. a 50% deposit will help though. If you've kept bank accounts open here that will too. If you want his details let me know and i'll pm them to you.

 

Thanks Londongal76, if you can send his details to me that would be great! I have owned a house in Oz before but another user said Aus history makes no difference, I'm an Aussie too so not 100% on how things work in the UK. I don't have a bank account there now but did back in 2011 when I visited.

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