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Obtaining a mortgage whilst earning £'s


Guest sooperlids

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Guest sooperlids

Has anybody successfully obtained a mortgage whilst earning £'s rather than $'s. I run a business in the UK & have done for 20 years. The business is being run remotely by myself with a little help in the UK. I have a 50% deposit and want to borrow approx. 3x my annual income. My partner also has just got a full time job earning an additional Australian income. We are trying to obtain a joint mortgage. We have just been refused by with Commonwealth bank on the basis we cannot guarantee our income. We also have sufficient savings to cover the at least 2 years mortgage payments. It's the 1st time I have ever been refused credit. Also will this go on my currently non existent credit record in Australia. Any advice greatly appreciated.

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Try seeking out a decent broker who will perhaps deal with business banking not personal and could perhaps push the right buttons to help secure a mortgage. Don't go direct to the banks.

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Guest sooperlids

I tried a broker, he was the one that got refused. It took a week & approximately 80 pages worth of documents emailing from my accountant in the UK. Personal tax returns, company tax returns, company incorporation info, 2 years accounts, company annual returns etc. I have called 3 other brokers so far left messages with each & none have got back to me. :(

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You may be best to wait a few months till she has clocked up some employment time/history. I recall being told they liked you to have been employed for at least 3 months, 6 or more preferable. Also if self employed then at least 2 years (although this can be gotten round it seems).

 

Research other brokers. There may be someone out there who is good at getting mortgages for people in unusual situations such as self employed or income overseas. It may mean going for 25 or 30 years instead of 20 repayment wise. It may mean opening a business account and offset account with a specific bank if they offer the mortgage via them. Things to look in to.

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I'm not sure how long you've been in Australia. Did this income show up on your Australian Tax Return last year? From personal experience ANZ seem OK to accept any income that shows on your tax return (although admittedly in my case foreign income wasn't a significant percentage and that may make all the difference). Also ANZ only need 12months of self-employment not the 2 years most banks require.

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Guest sooperlids

Ken, I have only recently arrived. Haven't paid any Aussie tax yet. I operate my business remotely so can be anywhere. Have previously operated it from the U.S.A with no problems. As I said I have been operating it for 20 years. Seems odd that I see ads on TV to say you can buy your 1st home with $3000 down. I have $400,000 but seems I may struggle to obtain a mortgage. Surely those with a tiny deposit are a far greater risk than somebody that has been working in the same industry uninterrupted for their entire working life. Maybe have to rent for a while & be more patient. Shame as we had found a couple of properties we really like & mortgage payments would be less than rent.

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I work for a UK company earning £'s and we went with a broker from Aussie home loans and got a mortgage with anz no problems, 3 months payslips and that was it!

 

I think the issue is if its classed as self employed they are less than keen. There is a longer self employment time needed than if employed.

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Guest sooperlids

Thanks Andy but I think I have found somebody that can help. They have suggested ANZ same as Wattsy. They have asked for one years accounts. Apparently they will base my income at a rate of .1.8$ to the £. And then only lend on a multiple of 80% of my net profit. Still should be enough to borrow what I would like. Anyone in the same situation avoid Commonwealth Bank.

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Ken, I have only recently arrived. Haven't paid any Aussie tax yet. I operate my business remotely so can be anywhere. Have previously operated it from the U.S.A with no problems. As I said I have been operating it for 20 years. Seems odd that I see ads on TV to say you can buy your 1st home with $3000 down. I have $400,000 but seems I may struggle to obtain a mortgage. Surely those with a tiny deposit are a far greater risk than somebody that has been working in the same industry uninterrupted for their entire working life. Maybe have to rent for a while & be more patient. Shame as we had found a couple of properties we really like & mortgage payments would be less than rent.

 

We're in a virtually identical position, in terms of operating our company remotely, the size of the deposit and got an offer from CBA with no issues. We just needed the last two years returns (corporate and personal) and 2 years of transactions from the company account.

 

My wife is an Australian citizen and has been with CBA for twenty years though.

 

We requested a home visit by the mortgage innovator, so this probably helped a lot.

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Guest sooperlids

Just to update, got a pre approval with ANZ this morning. The broker put in our application 4 days ago. We were asked for the same things as you Keith minus the transactions.

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