Tier 1 Visa + Mortgage application

The_Palmist

handytips wrote: »

Perhaps you should phone 'Rogue Traders' at the BBC ?
I dont know who you are or what you are, would i do business for you...probably but to be called a tradesman is also arrogant on your behalf, and a bit of a newsflash for you. No there are not many rogue brokers left they have all but disappeared now, thakfully, you do not come across as a very trusting person and you also come across as someone who is happy with their own advice and judgements, sorry but i cannot wish you any luck at all

I have corrected the bit about tradesmen, that was wrong use of English on my part. You are being too sensitive. Trust issues aside, yes I refuse to act like sheep, I am always up for healthy exchange of information without judging each other.

We have hijacked enough of this thread and haven't really contributed much in our last few posts.

I still wish you good luck.

jeddentad

since this is one of the first forum threads when searching for this kind of info, I thought I'd post our recent information. (recent this past two weeks)

I have a tier 1, with 14 months left before I can apply for extension (not ILR).

I bank with Lloyds, my partner (who is British) with Barclays. Initially (about 2 months ago), Lloyds told me they would not even consider a joint application unless my partner held an account there, so we didn't even consider them.

I started the process with Barclays/Woolwich, explaining my visa situation, and though the agent needed to go off and speak with the underwriters, we were given an AIP for a 90% LTV. I was told that the underwriter said that the visa is no problem, unless there are only a couple of months left on it.

Soooooo, onto the actual application process. Here, we find out that while Barclays will lend to people without ILR, they will not lend over 80% LTV. If my name was on the mortgage in any way, it could only be 80% LTV.

Now, Barclays did say that if I had my main current account with them, then it could be a different story. This is because Barclays offers PAML (pre-approved mortgage limit) to customers who've had their main current accounts for longer than 6 months. This is where I THINK the screwup came from on the AIP. I do have an account with Barclays, but it's not my main current account.

I then called around to RBS and Halifax to find out what our options would be for a joint mortgage. RBS said the same as Barclays. Not having ILR is no problem, but the most they will lend is 80% LTV.

Halifax on the other hand, has said they will lend up to 90% LTV to someone who doesn't have ILR. I was told this by three different people at Halifax.

It was mentioned in passing with both Barclay's and Halifax, that they both take into account how long a person has been in the country when they don't have ILR. The first agent, who gave the bad AIP, said he thought that you needed to have lived here for over two years. Halifax alluded to a time frame, but didn't specify what it was.

One day, all this stuff will be spelled out where we can all read it, rather than buried in the notes that only the agents have easy access to. (you can find some of Barclay's agents notes, complete with screen shots of their mortgage application program, through judicious googling)

Conrad

kingstreet wrote: »

So did Conrad! What's that about then, Conrad?

My view is the applicants with straightforward non complex needs, can very easily find the best deal which as we all know will likely be with a small Building Society or other lender such as HSBC, that pay no commision.

As for this 'ah but lenders direct dont offer advice', so what? We know very well that large Banks have perfectly adequate complaint and compensation process' in place, so there is no need for advice and in any event most people can simply compare fees and rates themselves, no need for a broker at all.

Conrad

jeddentad wrote: »

One day, all this stuff will be spelled out where we can all read it, rather than buried in the notes that only the agents have easy access to.

The issue lenders have with foreign applicants is twofold;

1) Experience has shown they are more likely to 'up sticks' and dissapear abroad when the going gets tough. This then presents all sorts of legal headaches if the lender needs to repossess the property.

2) Applicants always say thier stay in the UK is open ended and secure, but in reality some people find themselves not being able to stay for one reason or another later on. If the lender then had to repossess, the home owner might claim they were miss sold a mortgage as they might say "you knew my situation and that I might have to leave the UK, so why did you sell me a mortgage'

kingstreet

Conrad wrote: »

My view is the applicants with straightforward non complex needs, can very easily find the best deal which as we all know will likely be with a small Building Society or other lender such as HSBC, that pay no commision.

As for this 'ah but lenders direct dont offer advice', so what? We know very well that large Banks have perfectly adequate complaint and compensation process' in place, so there is no need for advice and in any event most people can simply compare fees and rates themselves, no need for a broker at all.

I don't disagree with any of that. There's a market for direct and advised business and TBH I haven't got the time or energy to try to make "converts."

I was simply surprised at your thanks for post #15;-

jesus i have never seen so many advisor's touting on here before....the long time good ones on here just give info out and do not tout..

given there wasn't a single business name or invitation issued to anyone. I know there may be some who PM enquirers but that isn't done openly enough for anyone to be accused of touting, IMHO.

horngkai

how much does it actually cost to use a mortgage adviser?

The_Palmist

jeddentad wrote: »

since this is one of the first forum threads when searching for this kind of info, I thought I'd post our recent information. (recent this past two weeks)

I have a tier 1, with 14 months left before I can apply for extension (not ILR).

I bank with Lloyds, my partner (who is British) with Barclays. Initially (about 2 months ago), Lloyds told me they would not even consider a joint application unless my partner held an account there, so we didn't even consider them.

I started the process with Barclays/Woolwich, explaining my visa situation, and though the agent needed to go off and speak with the underwriters, we were given an AIP for a 90% LTV. I was told that the underwriter said that the visa is no problem, unless there are only a couple of months left on it.

Soooooo, onto the actual application process. Here, we find out that while Barclays will lend to people without ILR, they will not lend over 80% LTV. If my name was on the mortgage in any way, it could only be 80% LTV.

Now, Barclays did say that if I had my main current account with them, then it could be a different story. This is because Barclays offers PAML (pre-approved mortgage limit) to customers who've had their main current accounts for longer than 6 months. This is where I THINK the screwup came from on the AIP. I do have an account with Barclays, but it's not my main current account.

I then called around to RBS and Halifax to find out what our options would be for a joint mortgage. RBS said the same as Barclays. Not having ILR is no problem, but the most they will lend is 80% LTV.

Halifax on the other hand, has said they will lend up to 90% LTV to someone who doesn't have ILR. I was told this by three different people at Halifax.

It was mentioned in passing with both Barclay's and Halifax, that they both take into account how long a person has been in the country when they don't have ILR. The first agent, who gave the bad AIP, said he thought that you needed to have lived here for over two years. Halifax alluded to a time frame, but didn't specify what it was.

One day, all this stuff will be spelled out where we can all read it, rather than buried in the notes that only the agents have easy access to. (you can find some of Barclay's agents notes, complete with screen shots of their mortgage application program, through judicious googling)

who did you end up going with in the end ?

I remember speaking with Barclays but they refused to take it any forward. At that time, I had about 14 months left on Tier 1 as well. Halifax were more accepting and everything went quite smoothly with them.

jeddentad

The_Palmist wrote: »

who did you end up going with in the end ?

I remember speaking with Barclays but they refused to take it any forward. At that time, I had about 14 months left on Tier 1 as well. Halifax were more accepting and everything went quite smoothly with them.

my partner was able to get a PAML through Barclay's on his own, so we've (well, he's) put an application through with them. Means our solicitor will be earning a few more fees as we do up the paperwork to protect investments and such. Barclay's was well aware that half the deposit and also living costs are coming from me.

I've got Halifax now as a backup if any unforseen issues come up with the Barclay's application.

The interesting thing about the PAML is that Barclay's told him they wouldn't be doing a hard credit check when putting through the full application. Neither of us has any problems with our credit, but I think it really made a psychological difference to him to not have the footprint.

We're now waiting on the valuation to come back.

jeddentad

Conrad wrote: »

The issue lenders have with foreign applicants is twofold;

1) Experience has shown they are more likely to 'up sticks' and dissapear abroad when the going gets tough. This then presents all sorts of legal headaches if the lender needs to repossess the property.

2) Applicants always say thier stay in the UK is open ended and secure, but in reality some people find themselves not being able to stay for one reason or another later on. If the lender then had to repossess, the home owner might claim they were miss sold a mortgage as they might say "you knew my situation and that I might have to leave the UK, so why did you sell me a mortgage'

I'm not saying they need to change their practices, only that it'd be nice to be able to find out easily the criteria they apply. It seems that it is generally quite black and white. It's relatively difficult to lie about your visa status, since one look at your passport/id card and the truth is there.

The_Palmist

jeddentad wrote: »

The interesting thing about the PAML is that Barclay's told him they wouldn't be doing a hard credit check when putting through the full application. Neither of us has any problems with our credit, but I think it really made a psychological difference to him to not have the footprint.

We're now waiting on the valuation to come back.

Good luck. It might be one of those fast track things.