Complex Questions - Obtaining aUK Mortgage from Overseas & Buying Auctioned Property

eden_ca

My husband and I moved from the UK in 2009 to Canada. We are planning our move back so I have a couple of questions:

1.) How do you obtain a mortgage for a home in England from abroad? I've read varying suggestions - most say that it is best to get a mortgage in the country you are buying in, however I am not local and so have no local address etc. Can anyone offer advice?:money:

2.) We have noticed that Rightmove.co.uk offer the filter-option of viewing property that is up for auction, and we are not sure whether these properties hold a risk, if so what are they? How do you obtain a mortgage for an aucutioned property? I'm assuming it's the same as when you buy any other type of property.

Open to caution and advice.

Thank you.

holly_hobby

What will be your employed status when you return i.e are you being transferred back to the UK by your employer ?

H

eden_ca

We are working on that now.. we came over here with no jobs and it turned out to be a disaster so we're not doing that again. Securing work over there first, then finding somewhere to live. One step at a time.. but yes, when we return we will have jobs.

holly_hobby

Ok,

So you did not relocate with employment.

Well to apply for a mge you will need earned income (and no or little adverse) - so you will need to be in a job with some history before you start looking for a mge.

You also need to re-establish some history back in the UK - so get back on the voters roll and some utility bills in your name (credit card with fully paid balance each month will also help with your status checks).

I would suggest you will need to go into rented for about 6 mths to get sufficient history behind you to apply for a mge app (thats assuming you have a deposit ? A large deposit may help UWs be flexible with their mandate in respect of your 2 yr UK absence)

If there is a way round this .. others will be along with guidance ..

Hope this helps

Holly

eden_ca

That's sound advice Holly. Yes we will have a downpayment, and I do have work at the moment (regular income).

Thinking of it from an alternative perspective, assume I was a foreigner that just wanted to invest in a piece of UK property and that I wasn't going to actually live in the UK, how would that work?

People buy property abroad all of the time, whilst living in the UK for instance. How does that work? Do they get a mortgage in England, and just pay the overseas seller?

holly_hobby

If you are not an ex-pat, or UK domiciled or residnet, you would need to source the finance in your country of residence,




If you are a UK citizen, and classed as ex-pat, there are various UK lenders who do offer ex-pat mortgages (for those individuals temporarily located os of the UK) who have usually been relocated with work (multi nat company)

• hold a uk bank account to which in some cases the salary is credited
• some want evidence of uk taxable income
• have an intended date of return

Purchasing an overseas propety, whilst domiciled/resident in the UK is permissible, in certain countries such as Spain, Portugal, France (list not exhaustive).

Normal status checks apply, i.e sufficient UK earned income to service the borrowings, generally min 25% deposit, mge repayments in GBP, no adverse history etc .. etc..

Basically the lender will forward the monies to your Solicitor on completion, whom will obv forward it to the Vendor's legal rep - there are other legal issues in eurpean countries that will also incur cost to the purchaser, your advisers would provide you with such details..


Hope this helps

Holly