Returning to the UK. Buy? Rent? Credit history etc advice!

Returner

Hello. I'm new to this forum and have been reading and learning and now hope that people here will offer me some advice please. I also hope I have chosen the right section of the forum.

My hubby and I are returning home to Britain after 20 years in the USA. HOOOOOORAY! We are planning to return next year and are keen to do as much as we can to optimize the chances of a "soft landing"! Chiefly, we are wondering when we can start to consider getting back on the housing ladder, and how we can best strengthen our chances of a mortgage, and at a decent rate.

We shall be returning with a very slim credit history in that we have had a bank account and credit card there for about 30 years, and we both have worked in England before leaving for America, but other than that, we won't have much "foot print" at all. None of the usual things that build a credit history, including the fact that I'll be able to go on the electorall roll as soon as we arrive, but hubby won't, being a US citizen (he'll have ILR).

Shall we anticipate renting for a while when we get back so as to build some current credit history and make us more attractive to lenders? We've no problem doing that at all if it will help in the long term.

I am seeing conflicting info as to the salary multiplier that lenders are using. What is it on average?

And how worried should we be that hubby won't be on the electoral roll? Is that going to put a huge ding in his acceptability to a lender and if so, will it help any that I will be on it?

Are there any lenders in the UK that will take in to consideration a US credit report? Ours is excellent and I kinda hate to waste it!! And some of the reporting companies are in both countries!

If you were us, how might you plan the first months and years back in England so as to be able to get a mortgage in the end? Looking on Rightmove it looks like we'll have a deposit in the 25% region I think. We have no other debt (fingers and toes crossed but a lot could go wrong between now and then!)

We would greatly appreciate any thoughts and insights anyone might offer

Thanks.

PasturesNew

What about all that small stuff like jobs and a deposit?

Returner

Returner wrote: »

it looks like we'll have a deposit in the 25% region I think.

Thanks.

Job not a problem.

Anyone able to offer advice? Anyone?!

WellKnownSid

Try the international arm of your UK bank... that's what we did, and got a UK mortgage with a UK bank despite no credit history, no UK address, not on voter's register, no UK phone numbers, blah-di-blah.

CloudCuckooLand

PN's question still stands. "not a problem" doesn't help clarify what you are planning to do.

If you come back as a result of a transfer with an existing employer, you would have a stronger position, being able to demonstrate continuation of employment.

If you just up-sticks, and turn up, you'll may have to be out of probation or need 6 months under your belt in new jobs, to satisfy many lenders.

Rent - and roll with the punches...

Returner

Thank you all

Sorry. Didn't mean to be vague! It looks like the move will be on an intra-company transfer (though we shall probably still come home if that doesn't pan out in the end).

Will definitely speak with our bank in the UK and get an intro to the international division. Great idea, thanks WellKnownSid! Did you end up paying a higher rate because of your differing circumstances?

WellKnownSid

Got their standard UK rate at the time, 3.99% fixed for five years. Better to move back to your "own" place than rented, if you can.

It helped that we were self employed so no issue of probation, location, etc.

dimbo61

Unless you are returning to your old home town/city and know the area well why not rent for 6/12 months and get to know the area and have a good look around at whats available on the housing market.
Its a big and expensive decision to buy a property so take your time and this also gives you time to build up a credit history in the uk and join the electorall role, settled in a job for 6/12 months ETC.
Have a look at schools, areas, ETC

Returner

You make an excellent point dimbo61, thank you. The more I think about it, the more I can see advantage to taking our time by renting initially, especially if house prices do indeed remain stable, or even drop a little, in the next year or so. And by doing so, few of my current concerns about our thin credit history would still apply...except hubby's not being on the electoral roll

Although WellKnownSid's point about getting in to your own home as soon as possible is also well taken, given how wonderfully odd it's going to feel to be back in Britain after all this time! It'll be interesting to see how things work out.

Thank you so much, those who took a minute to offer your thoughts to help

dimbo61

I think house prices will remain stable for next 12/18 months unless you are buying a penthouse next to Harrods in london!
If you rent in the area you want to settle in then you have time to search out your forever home and even stay in the rental while you have any work done on your dream home when you first buy
Good Luck in your move

Returner

dimbo61 wrote: »

Good Luck in your move

Thank you so much! We are both excited that we shall soon be home at last