mortgage question - buying a house with non-UK partner

PasseySam

Hi,

My partner and I have both accepted new jobs and need to relocate to the South East before the beginning of May. Our current flat is just about to go on the market and the mortgage on this flat is completely in my name. We are planning to apply for a mortgage jointly for our new property, using the capital from the sale of my flat as deposit on the new one.

My partner is a New Zealand national and so I am worried that this will affect our mortgage chances and if there are any specific lenders that we should look at? He has been in the UK for almost 10 years, in a professional job, registered on the electoral role and with UK bank accounts. At present he is on a work permit, but this will expire in april when he finishes his current job, he is eligible for indefinite leave to remain which he is applying for to have in place when he begins his new job but it may be tricky to get this through in time for our mortgage applications. I am assuming the fact his current work permit expires in april is likely to pose some problems?

As we are both professionals and I have a mortgage already which is (hopfeully) going to provide about 35% of the purchase price of our new house, are we likely to encounter a whole host of problems with a joint mortgage application related to his non-uk status? We have spoken to Natwest who didn't seem to consider this to be a problem, has anyone had any experience of Natwest mortgages for non-UK nationals?

Is there anything we can do that would strengthen our position for mortgage applications?

As we are on a bit of a timescale I wanted to get everything right first time and not experience any hiccups along the way if we can help it... I've read a few disaster stories here on the forum already!

Many thanks for any help and advice

maveli

I was in the same boat couple of years ago. Most of the banks will ask for at least 2 years more on the work permit. So if your partner got a work permit which last for next 2 years or holds a permanent residence then you will be OK

herbiesjp

I've got a similar case going through at present.

A lot of lenders will want a minimum of 2 years left on the current Visa.

Others 1 year.

Other lenders are slightly more flexible in their approach, and will look at the overall situation and look to agree it if at all possible.

The deal I was looking at was with RBS (part of same group as NatWest).

I would suggest getting an adviser to help, as you are right your situation could cause a few problems along the way unless ironed out from day1 - along with the best rate!

PasseySam

Hi,

Thanks maveli and herbiesjp for your replies, you have confirmed my suspicions that most lenders would want to see a decent amount of time left on the work permit. I guess I was kind of hopnig that because he'd been here a while already and has a good job etc. that this may help, but still can't get around the work permit thing.

Natwest originally said that as long as I was a British Citizen then it didn't matter about my partner not having permanent residency but we haven't followed this up officially or put in any applications yet so it may rear it's ugly head again when we do! I guess there would always be the option of just having the mortgage in my name although this would obviously affect how much they will lend.

I think I will follow your advice and find a mortgage advisor/broker to help us iron out any potential problems - now just to find one that won't cost the earth....!

Thanks so much for the advice, :beer:

VIGILANT22

best route ask a friend/family/colleague to refer you to someone they have used and been happy with....

herbiesjp

PasseySam wrote: »

we haven't followed this up officially or put in any applications yet

Before doing so, you would need to make sure you fit the other criteria as well i.e. income multiples/other debts/credit history/property type etc.

No point in applying to a lender that is ok with the residency status, only to find out they can't then offer you a mortgage based on other criteria.;)

PasseySam

Hi,

Sorry to be a little naive about this but is there an easy way of finding out the lending criteria for different lenders, (i.e. on their websites or something)?

I think consulting a broker is going to be the best plan, but would like to arm myself with a little understanding of the criteria lenders use to make sure we get the best deal possible if we find a suitable lender.

Thanks so much for help everyone, very much appreciated! :beer:

herbiesjp

Indeed you can look at a lenders website and look at their criteria.

However sometimes it is not very easy to locate - and sometimes what may seem set in stone in criteria, may be more flexible in real life.

Pincher

A bit out of the ordinary, but have a word with Bank of China.
They are used to dealing with overseas buyers.
They have branches in London.
China has too much cash, and is keen to expand into the UK mortgage market.

PasseySam

Thanks everyone for all your useful advice!

Just an update - since posting here we have been to see a couple of banks that both myself and my partner bank with. Natwest said that the work permit would be a problem but they would lend in my name alone and the figure they said would still allow us to purchase the house we like (if we could get the right price).

HSBC said the work permit wasn't an issue for them as my partner has been in the UK for 10 years and is a professional in a good job, and have given us an agreement in principle which easily covers the amount we wanted to borrow plus a decent margin above that. As we are hoping to have almost 40% deposit from the sale of our flat we are eligible for pretty much all of HSBCs mortgage offers which sounds promising. We have an appointment with the mortgage advisor to talk about it in more detail later this week.

I have also spoken to L&C brokers who were very helpful and said that if HSBC said it would be OK then it is likely other lenders would too, and mentioned that others such as Woolwich did not appear to have any time scale restrictions on their lending for people on work permits.

Although an AIP is great and puts our minds at ease about being able to get the money, I am concerned that when the mortgage application actually goes in it will then get rejected because of the work permit thing even though the advisor in the branch or the borkers said it would be ok. Is there any way we can cover our backs and get some kind of confirmation that this won't be an issue before we proceed with applying and risk it all falling through because the mortgage underwriters decide at some point down the line that the work permit is too risky?

herbiesjp

You can try asking the banks for written confirmation on their policy in relation to non UK nationals.

You have to trust what you have been told, as from what you have posted, there are lenders that will be able to help.

You will only find out 100% however, once the application has been submitted and an underwriter assessed the application.