UK Mortgage for UK citizen working in the US

jcgwakefield

Hi there,

my brother is a UK citizen with a UK bank account, married to a US citizen living and working in the US with a green card for about the last ten years.
He would like to invest a lump of money in the UK property market by putting down the deposit on a london property which I would then live in, possibly with my girlfriend and we pay off the mortgage. Thus assisting us in getting onto the property ladder.
A mortgage adviser said the best thing to do would be for my brother and I to have a private agreement where he effectively lends me the deposit and I return it, upon sale of the property, with its graduation in value, and the mortgage is between my girlfriend and I.
However, I would like to know if it was possible for my brother and I to take on the mortgage, he has far better earnings and there fore lending potential. Although, he is interested in buying a property in the US himself so would a UK mortgage effect his lending potential in the US?
So, will a UK bank lend to a UK citizen working and living in the US?
Or, is it possible to get a US mortgage on a UK property, as they have apparently very preferential interest rates set for life?
If any one out there has any advice or has encountered a situation like this before I would be very grateful.

Thanks in advance

James

herbiesjp

You do not state what figures you are looking at i.e. purchase price, deposit, incomes - however in theory yes it is possible for a UK national living in the US to buy a UK property via a UK mortgage lender

Has your adviser not run those options past you?

jcgwakefield

Okay,

My mortgage adviser has stated that mortgages for over seas citizens have higher interest rates and lower loans, he recommends my girlfriend and I going in together.
However, she is quite unsure about committing to a mortgage, she is happy renting. Which I understand, although I have always wanted to buy and this is the opportunity I have been waiting for. At this stage I want to see what is available.
With regards to figures:

50-60K deposit

My earnings approx 35k ( I am a freelancer)

Her earnings 25k (Full time employed)

My brothers earnings, I don't know but more substantial than my own.

herbiesjp

The fact about a deposit being higher may be true - rates however are comparable to high street rates.

You could also get a mortgage in US$, which might be better if your brother is involved.

You have not put what prices you are looking at - as looking in London the prices can be pretty high, as I know all too well

How long have you been a freelancer, and how many years accounts do you have?

jcgwakefield

herbiesjp wrote: »

The fact about a deposit being higher may be true - rates however are comparable to high street rates.

You could also get a mortgage in US$, which might be better if your brother is involved.

You have not put what prices you are looking at - as looking in London the prices can be pretty high, as I know all too well

How long have you been a freelancer, and how many years accounts do you have?

I have been freelance for seven years, can provide two years of accounts from my accountant, the years prior to that I have PAYE payslips for (I work in film and TV and at lower down levels you are PAYE).
I would be interested to know more about US mortgages, and if it is possible, any case studies as it were?
As I said, at this stage I am interested to know what is possible with regards to US mortgages, and UK mortages for UK citizens living in the US, so any links or case studies would be gratefully recieved

herbiesjp

For US mortgages you are better off talking to a US broker

For UK mortgages or US$ dollar mortgages from UK lenders, you are better off talking to a UK mortgage adviser.

As for case studies, I can only talk about past clients in generic terms, otherwise it would be a breach of the Data Protection Act

jcgwakefield

Generic terms is fine by me, we are looking at properties in the 225k-275k mark.

herbiesjp

You could look at 70% LTV (with your brother on it and living in the US)

So you would need to find out what your brother earns, if your preferred route is purchasing with him.

However, some lenders would want it in his sole name, in order to be eligible for the deal - you being in the UK already would put you outside of criteria.

If you bought with your GF then that would be different and you would look at normal high street deals.

jcgwakefield

Sorry whats 70% LTV?

herbiesjp

70% Loan to value

I.e. borrowing 70% of the purchase price - so you need to put down a 30% deposit (or at least your brother would)

If buying with your GF you could get away with a lower deposit - however the higher the deposit the better interest rate you can get.

jcgwakefield

Okay,

Thanks, but I am really interested to know of companies that have dealt over sea's mortgages before, what sort of pitfalls to look out for, case studies etc