Mortgage

[Nicko]

Hi there, 
 

Thank you in advance for your help. So we are just going through the process of applying for the 309/100 visa for my wife the medical was completed today and was the last thing to do. I am Australian though have my British passport. We hope to be back in Australia this time next year.

So I am wondering how long does it take till the banks will consider you fit for a morgage? Would we need to be in employment for a couple of years before we could apply? Does the deposit size make a difference? Just trying to figure out, if we would be best selling the family home here and cashing out, or would be best to rent our home out until we can get back on the ladder.
 

I have my reservations about renting and would prefer to come back with the cash though if we can’t get a morgage for a couple of years we may as well rent our property until we would be considered by the bank for a morgage then sell it to put into our new home in Australia.

 Hopefully the market will have calmed down by then as well!! 

[ali]

We had only been here 2 weeks when we put an offer in for a house (we were putting down a reasonable deposit), I had a letter from my employer stating that I was employed in a substantive position and we didn't have any problems getting a mortgage.

[Ken]

4 hours ago, Nicko said:

Hi there, 
 

Thank you in advance for your help. So we are just going through the process of applying for the 309/100 visa for my wife the medical was completed today and was the last thing to do. I am Australian though have my British passport. We hope to be back in Australia this time next year.

So I am wondering how long does it take till the banks will consider you fit for a morgage? Would we need to be in employment for a couple of years before we could apply? Does the deposit size make a difference? Just trying to figure out, if we would be best selling the family home here and cashing out, or would be best to rent our home out until we can get back on the ladder.
 

I have my reservations about renting and would prefer to come back with the cash though if we can’t get a morgage for a couple of years we may as well rent our property until we would be considered by the bank for a morgage then sell it to put into our new home in Australia.

 Hopefully the market will have calmed down by then as well!! 

If you are self-employed or otherwise running your own business then yes you'll need a couple of years, but as an employee you only need a few payslips unless it's a casual position or you are still in a probationary period. Not sure where the housing market will be in a year's time but that's when mortgage rates may start rising again!

Don't forget to take into account how much more complicated it will be to sell you house after you've left the country and that (depending on how soon you sell after leaving the country) you may have CGT to pay in the UK as a non-resident selling UK residential property. Even if the gain is small enough to be covered by your tax free allowances it's red tape to deal with.

Edited June 19, 2021 by Ken

[Nicko]

Thank you both for your replies,

Ali thats amazing how quickly you were approved, congrats and hope you are settling into your new home and life in Australia

Yes Ken, they are valid points and might be better if we do sell, that’s my gut feeling with what might happen inbb B the market. The market is strong here at the moment as well. Only thing is I’m not sure how I will be considered employed in Australia with the nature of my employment. I will have work lined up though I need to take a deeper dive into how I will be considered employed. 

[Tulip1]

9 minutes ago, Nicko said:

Thank you both for your replies,

Ali thats amazing how quickly you were approved, congrats and hope you are settling into your new home and life in Australia

Yes Ken, they are valid points and might be better if we do sell, that’s my gut feeling with what might happen inbb B the market. The market is strong here at the moment as well. Only thing is I’m not sure how I will be considered employed in Australia with the nature of my employment. I will have work lined up though I need to take a deeper dive into how I will be considered employed. 

I’d say if you want to get a mortgage quickly then you need to make sure you are employed and not self employed. Nothing to say you can’t change that situation at some point but your first job has to be that way. 

[Marisawright]

9 minutes ago, Nicko said:

I will have work lined up though I need to take a deeper dive into how I will be considered employed. 

Three possibilities.  One, as a permanent employee, in which case you'll have no problem getting a mortgage once you're past your probationary period. Two, as a casual (either direct or through an agency) in which case you'll have no chance of a mortgage.  Three, you're a contractor, in which case you are operating as a sole trader, in which case you are self-employed and will need a couple of years.