Retired Expat looking for UK Mortgage Options?

Burts

Hi,

I’d be grateful for some advice on the following mortgage dilemma:

My retired dad (64) lives in Cyprus but wishes to apply for a mortgage for a property in the UK to spend more time with his family. Here are some indicative figures regarding his financial status:

Income:
His approximate total gross annual income is £20,670. This is a pension income of £17,500/year, plus an additional rental income from a Cypriot property of €3,600/year (£3,170/year).

Assets:
He owns two properties in Cyprus. He lives in the first one which is worth approx €140,000 (£123,250) and he rents the second (see above) which is worth approximately €172,000 (£151,500). He owns both outright with no outstanding finance owing.

Tax:
As a full-time resident in Cyprus, he is currently taxed on his income there, not in the UK – I understand this is at a 5% rate rather than 20% as it would be in the UK. So, after tax in Cyprus, his net income is £19,636. If he chose to live in the UK for more than 6 months a year, this would reduce to £16,536.

He has no savings for a mortgage deposit and would prefer to keep both Cyprus properties and spend the majority of the year in Cyprus to retain his Cypriot tax status.

What sort of position, in terms of access to mortgage offerings, does the above status place him? Might it be preferable to sell one of the Cyprus properties even though this would lose the rental income? Might it be preferable to sell both and just rent a place himself when he’s in Cyprus? Are there even any UK mortgages providers out there that would consider him?! Or can anyone suggest a better solution?

Cheers

handytips

Leeds BS, however you would need a deposit, but without talking to them i really do not know how they would view this application, they will lend approx 3.5 X income and would need a chunky deposit.