Returning Expat Mortgage Outlook

Ozzy_Don

Hi Folks,

I am planning to return from Australia later in the year and would like to buy a house soon after we arrive back. We have been out of the UK for 5 years but still hold a few grand in a current account, this is used on average once a month for a purchase or 2.

Salary 75K
Deposit 80K
Purchase Price 320K
3 Kids, my wife at home running the show.

With all this in mind do we stand a good chance of securing a mortgage?

Thanks in advance

Senior_Paper_Monitor

Do-able (assuming it is as simple as that) although quite tight on income multiples/affordability (unless you leave the wife and kids behind ) - but plan on 6 months in rented and set out an action plan to meet lender's requriements (I'd recommend getting a broker to help and stage manage).

Ozzy_Don

Cheers for the reply.

Might have to consider cutting the budget to 300k to give us enough breathing space.

Would prefer to avoid the rental market if possible as we have rented for the last 5 years out here and it's overrated.

However if that is the only option open to us then we will have to bite the bullet and rent for a period.

Senior_Paper_Monitor

I think it most unlikely that anyone is going to have a mortgage waiting for you on arrival (we are doing something similar for a client at the moment - albeit he is Swiss moving to UK so added difficulties - lack of UK credit rating tends to rule out the larger lenders as it doesn't pass the initial credit score, so individual negotiation with smaller lender who will lay down their advance requirements. Yours should be easier to comply with, but would expect similar requirements - specifically getting in the job here).

Most lenders require 12 - 24 months qualifying on return to UK - Ihaven't found any who will have it set up remotely, move in on arrival.

'Moving in with family' looks a tad tricky unless they have a dormitory block available !

The cost of short term accommodation (1 - 2 months) tends to be very much higher than medium term rentals - unless you are 'out of season' as 'holiday accommodation' can be used at better rates.

It might be possible to go three month rental (these do get offered at times) in standard rental accommodation, but frankly i think a 6 month plan would be more workable.

Conrad

I would suggest a lender that does not require credit scoring, still going to be touch and go though.

Ozzy_Don

It would seem renting is a very real prospect at this stage until we rebuild our credit history.

I will an employemt offer/contract before our return I don't know if that will help?

I have also looked at excpat mortagegs using my Australia income to apply for the loan, what do people think of the expat mortgage market?

Senior_Paper_Monitor

It will help - not cure (I had assumed that existed - without it, you were going nowhere)

Your expat income is about to end presumably - any lender will be interested in future not past income.


I stand by my post #2.

CBR600F_2

Wait. You're moving back to Britain? From Australia? Back to Britain? Britain?

My good man, you don't need a mortgage advisor, you need a psychiatrist.

Senior_Paper_Monitor

Best post of the year so far :rotfl::rotfl::rotfl: