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Getting a UK mortgage after 7 years in Aus


Devonshire Dumpling

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Hi there,

just wondering if any one had any suggestions or info regarding UK mortgage lenders that are likely to lend to a UK citizen who has been living in Aus for the past 7 years.

My partner and I are returning to the UK for good in 2018 and would like to purchase a property before we return so it’s ready to go when we arrive.  We would be seeking a residential mortgage as opposed to buy to let as we would be living in the property. 

Just looking to see if anyone has been in a similar situation and whether they have any tips or advice as to mortgage lenders etc.

thanks all ?

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I tried  get one a few months ago and no luck. Tried lots of brokers. The problems were because I was living in Australia - apparently Australian financial regulations have now made it very difficult for UK lenders and because I was trying to buy in Scotland - thought it was still part of the UK?? I was going to put down about 60% of purchase price and had other property in UK as security also  - didn't make a jot of difference.

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9 hours ago, dxboz said:

I tried  get one a few months ago and no luck. Tried lots of brokers. The problems were because I was living in Australia - apparently Australian financial regulations have now made it very difficult for UK lenders and because I was trying to buy in Scotland - thought it was still part of the UK?? I was going to put down about 60% of purchase price and had other property in UK as security also  - didn't make a jot of difference.

Yes the problem is that if the borrower is in Australia then the lender and anyone who speaks to the borrower on the lenders behalf must have an Australian financial advisor licence and if the mortgage is secured on a property in the UK then the lender and anyone who speaks to the borrower on the lenders behalf must be a UK registered financial advisor. While it may be possible for a corporation to be registered to provide financial services in both countries it's practically impossible to get personnel who are registered in both countries - meaning they're breaking the law and liable to penalties in one country or the other.

Regarding Scotland - Scotland has always had a separate legal system from England & Wales and the process of conveyancing and securitisation works differently in Scotland than from England and Wales and this does affect whether or not a lender is willing to lend on a property in Scotland. The largest lenders will all have a Scottish legal department anyway but some small lenders take the view the extra investment isn't worthwhile for what for them will only be a small increase in market size and so don't bother to offer mortgages north of the border.

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14 hours ago, dxboz said:

Thanks for the information Ken. I was actually in the UK at the time - very frustrating!

 

 

I have heard of some lenders who've acted as if they can ignore Australian law where the borrower isn't physically in Australia (including having borrowers fly to New Zealand to sign the paperwork) but the consensus now seems to be that as long as you are an Australian resident then Australian Financial Services regulations apply.

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