getting a Mortgage if in the UK for 90 days per tax yr

TotallyAlienQuizShowHost

Looking to get a mortgage 90-95% LTV, I am classed as fully employed though I work off shore most of the year and earn my wage tax free as I'm only in the UK for 90 days each tax year. I am paid in GBP.

Still trying seeking financial advice from independent advisors, however working out of the country a lot does makes it difficult to sit down for face to face help.

I was looking at 130-150K. So far the only advisor I've seen, says that I can only go up to 85% regardless of the amount I borrow, even if it's a 100K or under. (I net more than enough each month)

The reason for this as she explained it was that although my current credit history / record is fine, however the lenders felt that I would not gain sufficient 'Future' history if I'm only in the UK for 90 days a yr. This seemed to me a tad confusing as history is...well history, i.e in the past. None of us can predict what our credit rating might or might not do in the future?!

I asked her to ellaborate on this further, but the more she tried, the less and less sense she made (think she confused herself in the end haha).

I always assumed (as most of us would) that a lending / mortgage decision is based on your credit 'HISTORY' not what it might do in the future.

All my financial dealings (loans,credit cards, banking) is always done through the UK. Just wondering if anyone else out there have had a similar problem?


Thank you in advance for the kind soul who takes time to answer this

The_J

85% just reflects the risk they are willing to take on someone in your situation. A lending decision, as anyone might expect, is based on credit score, income type, future affordability and property details. The level of risk then dictates how likely you are to default, the higher the risk the lower the LTV ratio they will be prepared to do because the more they will lose out repossessing you.

TotallyAlienQuizShowHost

Thanks J for the advice

That makes more sense. Her explaination was as clear as fog haha! Anyway she was only the first advisor I've had a chance to see so far, seeking some more advice to see if they all come to the same conclusion.

If they do, then I guess I'm going to have to save up more money!!! Grrrrrrrr guess I'm just getting impatient as I want to jump onto the property ladder as soon as.

TotallyAlienQuizShowHost

Oh would the fact I am tax free (90 days in the uk per tax yr), would that have an impact? She suggested that's the reason for 85%.

As I mention, all my finances are based in the UK. I'm paid in sterling, although my head office is in Dubai, we do have a UK office, if that would help on mortgage applications for example? Would a white lie hurt if I said, 'yep work in the UK, here's my UK office address'

getmore4less

Is this actualy going to show on any mortgage application I don't reacla amy specific questions that would flag this up

Is the employer a UK entity?

Do you have a permanent UK address(electoral role)

Still need a decent deposit, I thought the point of working off shore was no tax and loads of money to save!

The_J

Paying UK tax is quite a big criteria point for many lenders. It will be quite apparent on the payslips.

Do you work for a multinational or a Dubai company?

TotallyAlienQuizShowHost

My pay slips don't show tax / NI deductions, hence it was my concern when seeking advice.

It's a multinational company.

To be honest I wasn't expecting any UK mortgage providers to lend, although I was hoping for the 90-95%. But as I mentioned, I guess I might have to save longer to hit the magic 85%.

Have been looking at sites that specialise in arranging mortgages for ex pats wanting to buy in the UK. However they are indicating that I need at least 20%.

Getmore4less:-

If I recall I don't recall application forms asking such questions. But as The J pointed out, if my payslips don't show tax decuctions,then they are going to ask the question surely not?

multinational company.

UK permanent addy & on the electoral roll.

As for the decent deposit. Only been saving since the beginning of the year plus haven't been working offshore for long, just under a year. The theory was, get on the ladder asap then pay off large chunks as I go.

I really do appreciate the advice, just interested to see if anyone out there as been in the exact same situation as myself. Don't think I'm the only ex-pat out there looking for a mortgage in the UK.

The_J

You aren't but you need a bigger deposit, 15% would still be tricky in my opinion and would only feel confident at 25%.

TotallyAlienQuizShowHost

Can you lend me 25% then haha!

I guess all I can hope for is that the market doesn't sky rocket out of control while in the process of saving. But I guess that's life

kingstreet

What's going to happen to this property for the other 270ish days of the year?

TotallyAlienQuizShowHost

Girl friend will be living in it. So it won't be empty for those 270 days if you are thinking from an insurance point of view