foreign checks

1lh

Hi, quick question. We are currently looking to buy a house.

I am from the EU and have lived in the UK for 5 year and we are now thinking about a mortgage. I am still paying off a loan in my home country.

My partner is from the UK and we both have a clean income and credit history in the UK.

However, how do they check my loan in the EU. Will they refuse us straight away based on that?

Will they check in my home country when I mention the loan on my expediture form?

Thanks

londoniana

They'll check your credit history and existing borrowing in the UK only.

Obviously, it's up to you to declare the loan or not. The right thing is to list it... It might impact your affordability.

hamster2013

depends how you pay your loan in your home country
remember, they can ask many months of bank statements, and if you are regularly transferring funds abroad to pay that loan - it will show up and they will query it.

I have a property in Europe which I am paying off with the rent it is generating - so do not transfer anything abroad - I did however let them know about it when I was asking for a mortgage - it did not affect my affordability but they did ask my bank statements from foreign account to confirm rental income as well as my tax returns.

if you are transparent, you will not have anything to hide and chances are you will not end up making a blunder by trying to cover upsomething

rest is up to you - but think it through.

1lh

HI,

Thanks for the answers.

I was planning to be open about it, but was worried we would be refused based on it. I pay it monthly via a foreign transfer from my UK bank account.

Thrugelmir

1lh wrote: »

I was planning to be open about it, but was worried we would be refused based on it. I pay it monthly via a foreign transfer from my UK bank account.

Then the lender will see the transaction if bank statements are requested. Failure to disclose would be regarded as fraud. So not advisable to do.

1lh

sorry maybe it was unclear. I was never planning to hide it and always planning to be open anout it. I was just wondering and worried if it could have the impact that we are declined right away and therefore maybe not be worth it even applying for a mortgage.

1lh

oh and if I would require paperwork about loan to show at the application other than the amounts going out of m UK bank account as I would need to request them beforehand in that case.

hamster2013

get your annual returns from that lender
it will show that you have not missed a payment.... important information the bank will request.

Thrugelmir

1lh wrote: »

sorry maybe it was unclear. I was never planning to hide it and always planning to be open anout it. I was just wondering and worried if it could have the impact that we are declined right away and therefore maybe not be worth it even applying for a mortgage.

Not suggesting you were. As this is an open forum many people browse for answers to their own questions. So I write in generic terms.

Annisele

I think it's unlikely the loan would cause an instant decline unless it makes a big difference to affordability.

So, if you have to repay €1,000 per month to your loan, and your take home salary is £1,000 per month, that's going to be a problem.

Similarly, lenders don't like people borrowing their deposit - so if it looks as though your deposit is wholly or mainly funded from the borrowing, that might also cause a decline.