New To The Country: Chances of Getting A Mortgage?

lokiman

Hello there, everybody.

I'm new to the UK mortgage process, as my wife and I - despite both being British - live abroad and have done since we were children. We've decided to move to the UK to start up our own business and we'd like to purchase property, as well. Now, we were very fortunate to have bought property about six years ago and have it triple in value since that time (part of the reason why we're moving to the UK: an overheated economy where we are). After paying off our current mortgage here, we'll have about 200,000 pounds, about 100,000 pounds of which we'd like to contribute as a large downpayment towards buying a 300,000 pound property in the Southwest of the UK. We want to invest about 50,000 pounds of the remaining proceeds of sale for long-term savings and use the remaining 50,000 pounds to start up a small business for ourselves. So, the bottom line is that we'll be wanting to get a mortgage for about two thirds of the purchase price of our intended property, but we'll have a fair amount set aside for savings, etc. Given that we're new to the country, can anybody offer any advice as to our chances of being able to get a mortgage on the basis of the financial scenario that I've set out above?

Cheers and thanks.....

toonfish

there are several lenders that may consider this, depending on your income and employment status

Cazza

Assuming you are both UK nationals, the biggest problem you will have is getting through the Credit Score system. Most lenders will want to see some form of "track record" in order to determine if you're likely to pay back their mortgage! If you are hoping to buy a property to live in before you move over permanently, you may struggle. However, it shouldn't take too long to build up a profile.

I would suggest moving over here and renting somewhere at first (this will also give you time to find somewhere!) If possible, work where you are employed rather than self employed will make it easier! Try to set up a UK bank account etc asap as this will start to build a profile. Other things you could do would be to get a mobile phone on pay monthly rather than PAYG and a credit card. Don't take out any loans or fail to clear the full balance off the credit card as these can have an impact on the level of borrowing you require (and if you don't trust yourself with a credit card then don't do that one!)

I would leave applying for a mortgage until you have been here for 6 months. After that, have a chat with a mortgage adviser and take things from there. Something may be possible before this, I have just managed to obtain a mortgage for a client who isn't a UK national and has only been in the UK since early November, but I have no idea how I did it!

arkie

they are lenders who will do 'an ex-pat mortgage'


iam a mortgage adviser

herbiesjp

You are both British - no problem there

However just coming back to the UK, no income and starting up a business.

This will limit your options greatly, but there will be lenders that could look at this.

Have you maintained ties in the UK? Bank accounts etc?

lokiman

Hi there,

Thanks for the helpful replies, everybody. Unfortunately, no, neither of us have retained financial ties to the UK. I went back to the UK for university and Bar School, but graduated about eight years ago and didn't keep any of my UK bank accounts. I had hoped that, since we were only looking to borrow two thirds of the purchase price and would be maintaining healthy bank balances and investments, lenders would take this into account in considering our joint risk profile.

lokiman

Not sure if this makes a difference, but I should add to my original info that there's a good possibility that we'll be jointly buying property with my in-laws, who are long-time UK residents and own their home free and clear. Not sure what the situation would be in the UK, but here in Bermuda someone of their age would have a hard time obtaining a mortgage, which is why I didn't mention it before. Perhaps this changes things?

herbiesjp

Are you close to Devonshire? Or Southampton?

Do you have an actual Bermuda address or operate via a PO box address?

Are you leaving the tax free haven of Bermuda to carry out the same line of work in the UK?

How old are the in-laws? Although this may not be a viable option

As stated previously, you will be able to find a lender to agree this for you both, but the rates will not be the best around. Bets plan is to get your credit history built up asap in the UK.

So get the mortgage, build up your credit history, get 1 or 2 years accounts under your belt, and you may then be in a position to get back to normal high street rates

HTH