Connorhaley Posted December 14, 2021 Share Posted December 14, 2021 Me and my girlfriend (Australian citizen) are currently living in the UK and have a mortgage. We are looking to move to Australia and when we do so renting out the property we both own in the UK. My question is would mortgage companies in Australia look at this and think we have two mortgages to pay and reject us? Or would they not factor it into play as rent covers the mortgage even though it is “another mortgage” furthermore I’ve read up about the tax threshold and know I’ll have to declare it on my AUS tax return and I’ll be WELL under the threshold. if anyone can be of help that would be great! Thank you! Quote Link to comment Share on other sites More sharing options...
DIG85 Posted December 14, 2021 Share Posted December 14, 2021 3 hours ago, Connorhaley said: My question is would mortgage companies in Australia look at this Generally, no. Quote Link to comment Share on other sites More sharing options...
Peach Posted December 14, 2021 Share Posted December 14, 2021 Australia is a different country. Your UK mortgage and assets are not considered when taking a loan out here. Remortgaging and persuading the bank to let your UK property out long term are most common issues that people raise on this forum. 1 Quote Link to comment Share on other sites More sharing options...
daveysing Posted January 21, 2022 Share Posted January 21, 2022 Would they get the exemption for stamp duty as first home buyers or is a property in UK taken into account? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 21, 2022 Share Posted January 21, 2022 1 hour ago, daveysing said: Would they get the exemption for stamp duty as first home buyers or is a property in UK taken into account? Yes they'd get the exemption. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 21, 2022 Share Posted January 21, 2022 On 15/12/2021 at 10:28, Peach said: Australia is a different country. Your UK mortgage and assets are not considered when taking a loan out here. I'm surprised at that. Are you sure? I know they ignore your British track record (creditworthiness etc), but if Australian banks are ignoring overseas debts when lending money to people, that sounds incrediibly foolhardy. Quote Link to comment Share on other sites More sharing options...
DIG85 Posted January 21, 2022 Share Posted January 21, 2022 (edited) 21 minutes ago, Marisawright said: I'm surprised at that. Are you sure? I know they ignore your British track record (creditworthiness etc), but if Australian banks are ignoring overseas debts when lending money to people, that sounds incrediibly foolhardy. When I most recently applied for an Australian mortgage (November 2020), my broker told me not to disclose UK assets or liabilities. So I didn’t. Whether the broker advised me not to because there is no requirement to do so, or because it would improve the chances of my application being successful, I know not. Edited January 21, 2022 by DIG85 Quote Link to comment Share on other sites More sharing options...
daveysing Posted January 22, 2022 Share Posted January 22, 2022 1 hour ago, Marisawright said: Yes they'd get the exemption. This is something I've been trying to find out myself Quote Link to comment Share on other sites More sharing options...
Peach Posted January 22, 2022 Share Posted January 22, 2022 1 hour ago, Marisawright said: I'm surprised at that. Are you sure? I know they ignore your British track record (creditworthiness etc), but if Australian banks are ignoring overseas debts when lending money to people, that sounds incrediibly foolhardy. My UK mortgage and house values were not considered when I have applied for mortgages in Australia, in 2012, 2016 or 2019. It's not that they ignore your UK credit history it is that privacy laws forbid the information be shared. Similarly the bank has no legal means of checking what your UK debts and assets are. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 22, 2022 Share Posted January 22, 2022 11 minutes ago, Peach said: My UK mortgage and house values were not considered when I have applied for mortgages in Australia, in 2012, 2016 or 2019. It's not that they ignore your UK credit history it is that privacy laws forbid the information be shared. Similarly the bank has no legal means of checking what your UK debts and assets are. I assume you didn't mention them at all? Did they ask the question and you said you had none, or they didn't ask? Just wondering about the legality of it. Quote Link to comment Share on other sites More sharing options...
daveysing Posted January 22, 2022 Share Posted January 22, 2022 (edited) 8 minutes ago, Marisawright said: 20 minutes ago, Peach said: My UK mortgage and house values were not considered when I have applied for mortgages in Australia, in 2012, 2016 or 2019. It's not that they ignore your UK credit history it is that privacy laws forbid the information be shared. Similarly the bank has no legal means of checking what your UK debts and assets are. Is this the case even when you include foreign income from your UK property in your tax return? The banks may access information on a property there? Edited January 22, 2022 by daveysing Quote Link to comment Share on other sites More sharing options...
ali Posted January 22, 2022 Share Posted January 22, 2022 On 14/12/2021 at 15:37, Connorhaley said: Me and my girlfriend (Australian citizen) are currently living in the UK and have a mortgage. We are looking to move to Australia and when we do so renting out the property we both own in the UK. My question is would mortgage companies in Australia look at this and think we have two mortgages to pay and reject us? Or would they not factor it into play as rent covers the mortgage even though it is “another mortgage” furthermore I’ve read up about the tax threshold and know I’ll have to declare it on my AUS tax return and I’ll be WELL under the threshold. if anyone can be of help that would be great! Thank you! I think you will need to let your mortgage lender in the UK know that it is now not a residential mortgage if it wasn't a buy to let property. Quote Link to comment Share on other sites More sharing options...
ramot Posted January 22, 2022 Share Posted January 22, 2022 2 hours ago, daveysing said: Is this the case even when you include foreign income from your UK property in your tax return? The banks may access information on a property there? As far as I know you have to declare world wide income? We certainly declare our UK rental income. I’m no expert. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 22, 2022 Share Posted January 22, 2022 2 hours ago, daveysing said: Is this the case even when you include foreign income from your UK property in your tax return? The banks may access information on a property there? That's what I was thinking too, because we've had members here who haven't declared their UK property to the Australian taxman, and ended up paying thousands in fines. However, banks don't have access to ATO information so they're not likely to find out. Quote Link to comment Share on other sites More sharing options...
daveysing Posted January 22, 2022 Share Posted January 22, 2022 16 minutes ago, Marisawright said: That's what I was thinking too, because we've had members here who haven't declared their UK property to the Australian taxman, and ended up paying thousands in fines. However, banks don't have access to ATO information so they're not likely to find out. Yes, I've declared it because I was going for citizenship and wanted to do everything by the book. Ofcourse now I can't backtrack so I'm wondering about the first property requirements for exemption on stamp duty. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 22, 2022 Share Posted January 22, 2022 2 hours ago, daveysing said: Yes, I've declared it because I was going for citizenship and wanted to do everything by the book. Ofcourse now I can't backtrack so I'm wondering about the first property requirements for exemption on stamp duty. Even if you declare it, it won’t affect first home buyers or exemption Quote Link to comment Share on other sites More sharing options...
newjez Posted January 22, 2022 Share Posted January 22, 2022 10 hours ago, Marisawright said: Even if you declare it, it won’t affect first home buyers or exemption Something I've always wondered. I've owned a property in Australia before, so I wouldn't get first time buyers. But my wife hasn't. If we bought the property in her name, could she get first home buyers? Quote Link to comment Share on other sites More sharing options...
Peach Posted January 22, 2022 Share Posted January 22, 2022 19 hours ago, Marisawright said: I assume you didn't mention them at all? Did they ask the question and you said you had none, or they didn't ask? Just wondering about the legality of it. I offer the information via my broker as was told (most recently for ING) that there was no section of the form for foreign assets/income/debts. Quote Link to comment Share on other sites More sharing options...
Peach Posted January 22, 2022 Share Posted January 22, 2022 19 hours ago, daveysing said: Is this the case even when you include foreign income from your UK property in your tax return? The banks may access information on a property there? I declare my UK rental income on my Aussie tax return. Quote Link to comment Share on other sites More sharing options...
Peach Posted January 22, 2022 Share Posted January 22, 2022 Just to add that banks were prepared to consider o/seas income when looking at my capacity to repay, but not in calculating the amount I could borrow. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 22, 2022 Share Posted January 22, 2022 20 minutes ago, Peach said: Just to add that banks were prepared to consider o/seas income when looking at my capacity to repay, but not in calculating the amount I could borrow. That makes complete sense, because they can't garnishee income overseas if you default. Quote Link to comment Share on other sites More sharing options...
Parley Posted January 22, 2022 Share Posted January 22, 2022 23 hours ago, Marisawright said: I'm surprised at that. Are you sure? I know they ignore your British track record (creditworthiness etc), but if Australian banks are ignoring overseas debts when lending money to people, that sounds incrediibly foolhardy. If you don't tell them how would they ever know? Banks don't do a worldwide search for information. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 23, 2022 Share Posted January 23, 2022 1 hour ago, Parley said: If you don't tell them how would they ever know? That's true, but they could easily have a clause in the mortgage to say you must disclose all assets and liabilities. Then let's say you end up in financial trouble because the combination of British and Australian debts is too much, the taxman and the legal system get involved and it all comes out. Then the bank could charge you with fraud because you kept your UK debts secret. Quote Link to comment Share on other sites More sharing options...
Parley Posted January 23, 2022 Share Posted January 23, 2022 24 minutes ago, Marisawright said: That's true, but they could easily have a clause in the mortgage to say you must disclose all assets and liabilities. Then let's say you end up in financial trouble because the combination of British and Australian debts is too much, the taxman and the legal system get involved and it all comes out. Then the bank could charge you with fraud because you kept your UK debts secret. Not really. All they care about is holding a first mortgage covering the property. They will typically lend only 80% of the value and know they will get their money back. They will just sell your house if you default. 1 Quote Link to comment Share on other sites More sharing options...
daveysing Posted January 23, 2022 Share Posted January 23, 2022 11 hours ago, Peach said: I declare my UK rental income on my Aussie tax return. Did you get first home buyer exemption? Quote Link to comment Share on other sites More sharing options...
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