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

woodsey2002

We returned from California in February 2009 after 5 years there. Kept Uk bank accounts and credit cards etc but took almost 2 years to get a mortgage as many high street lenders will require 3 years residency before lending. Those that don't will struggle to pass you through their credit criteria because you haven't got 3 years history so it's a bit of a catch 22.
Initially we only had a small deposit but even now with 20%, a 140K salary and the same employer for 15 years with no outstanding debt most lenders won't touch us with a bargepole.
That said prices are still so high there's not much I'd buy anyhow so we're still stuck in rented, our third so far thanks to appalling landlords.
We thought we'd found one last week but even an asking price offer wasn't enough to secure it.
Im not sure how your husbands status will affect your application so do make plenty of enquiries before you return as being on the voters roll is extremely important as far as most lenders are concerned.
I regret our choice to return every single day and if it wasn't for our son I'd go back tomorrow.
I genuinely hope you have better luck than we have.

spongerob

My advice would be to do everything within your power to not have to rent, reasons for this are two fold:

1: Private Landlords
2: Letting Agents

The vast majority of the above treat tenants like something akin to material they would wipe from their shoes and everything they do is geared toward milking as much money as possible out of them whilst giving them the absolute legal minimum in return and then expecting the tenant to be eternally grateful.

Please, do yourself a favour and explore any and every possibility to buy a place of your own if you can, doubly so if you have children.

woodsey2002

spongerob wrote: »

My advice would be to do everything within your power to not have to rent, reasons for this are two fold:

1: Private Landlords
2: Letting Agents

The vast majority of the above treat tenants like something akin to material they would wipe from their shoes and everything they do is geared toward milking as much money as possible out of them whilst giving them the absolute legal minimum in return and then expecting the tenant to be eternally grateful.

Please, do yourself a favour and explore any and every possibility to buy a place of your own if you can, doubly so if you have children.

Whilst I'm sure there must be some decent landlords out there, our experience means I'm in complete agreement with you on this.
As we had no credit history on our return we were required to provide references from my husbands employer and pay 12 months rent plus bond up front, not an easy task when the rent is £1200 a month. In return our landlord who had moved to France and was renting out the property as he couldn't sell it at it's outrageous asking price left us with his debt and we had daily visits from bailiffs as well as regular visits from the police looking for him.
We left 4 months before the 12 months were up and moved into another so called long term rental only for the landlord to decide he wanted to try and sell it again after 6 months.
We're now on our third, owners of the property have moved to Australia and again we have default letters turning up, no consent to let etc etc etc..I've made sure their mortgage provider and insurance providers are aware of the situation and I've also let the tax man know that the letting agent and the landlord haven't quite followed the rules.
We didn't have a working oven for the first 8 weeks of living here and other repairs which should have been done before we moved in are still not done 8 months on.
As a landlord myself (we rent out our property in the US) I'm appalled with how tenants are treated here. Even though I'm 5000 miles away, any problems and there have only been two in two years I sort it out within 24 hours.
As we've also discovered though trying to buy when returning isn't easy either. We were so excited about returning but from a housing perspective it's been an utter disaster and knowing that we have a beautiful house with a huge garden with a pool that we left behind makes for many a sleepless night. One day we'll sort it out but it's feels like we've wasted so much energy that we haven't had any time to enjoy being back.

ruggedtoast

Returner wrote: »

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.

I think you need to speak to a mortgage broker. London and Country are a big UK one who I found quite good for pressure free advice.

I'm not sure when Sid got his loan, but a 4% five year fix with no UK credit history on a self employed income, doesnt sound like it would be very attainable at the moment.

On average lenders will offer 3.5 to 4 times income. The Post Office is currently offering 4.5 times, and a few lenders will go to 5 if you have a stellar credit report.

It is harder to get credit than it was, though possible to get a mortgage with ILR if you satisfy the lender as to the visa.

All lenders will do a credit check on you, and a significant part of that is 3 years credit history, it really hurts you if you havent been on the electoral roll continuously for that time, so priority #1 when you arrive is to register. Dont delay it because it still takes weeks for the council to register you.

Even with no mortgage worries, buying a house can be a very long winded and precarious process compared to doing so in the US.

You need to be realistic about buying somewhere. There is no earnest money, or buyers negotiators over here. Unlike the US, Estate agents arent qualified to do anything other than tie a tie with a fat knot and drive a liveried mini around.

It can take you months to find a place you like. Then you can spend more months waiting for your sellers chain to sort itself out only for them to change their minds, or take another offer just before you exchange contracts.

Unless you are lucky to find a chain free place you like straight away and have no problems with finance in all probability your first 6 to 12 months, and possible more, will be spent renting.

There is a site called ukyankee you could look at as well.

WellKnownSid

ruggedtoast wrote: »

I'm not sure when Sid got his loan, but a 4% five year fix with no UK credit history on a self employed income, doesnt sound like it would be very attainable at the moment.

It was with the Woolwich. Rates have since gone up, but only about 1/2 a percent or so.

To be fair we put six figures through our personal UK bank account each year, but even then we couldn't deal direct, but had to be introduced by the International team.

woodsey2002

WellKnownSid wrote: »

It was with the Woolwich. Rates have since gone up, but only about 1/2 a percent or so.

To be fair we put six figures through our personal UK bank account each year, but even then we couldn't deal direct, but had to be introduced by the International team.

If you don't mind me asking how long ago did you manage to get this mortgage and with how big a deposit did you put down?

Our bank, Nationwide, practically escorted us out of the building when we dared to suggest they might give us another mortgage even though we too put a 6 figure salary through our account each year.

WellKnownSid

woodsey2002 wrote: »

If you don't mind me asking how long ago did you manage to get this mortgage and with how big a deposit did you put down?

Our bank, Nationwide, practically escorted us out of the building when we dared to suggest they might give us another mortgage even though we too put a 6 figure salary through our account each year.

We completed in January this year. The Woolwich call centre pretty much put the phone down on me, but when I contacted Barclays International / Barclays Wealth they got me the mortgage... through the Woolwich!!

As I understand it, they do non-resident mortgages all the time, but never directly.