Mortgage Option for new comer

remorseless

Hi there - I have been reading few threads and I would like some advice...
I recently moved with my employer from overseas to London and I am interested in buying a property to live in though after reading here and there I wonder how possible it's for me to get a mortgage and what would be the best approach.

I'd like to buy a small house in the suburbs, no more than 220K.
What would be an acceptable deposit?

As mentioned, I transferred with my employer, so I don't have financial history in the UK, would that be a huge problem? What could I do to improve it?

I have been with my employer for over 5 years, salary is pretty decent, all my previous banking details are in English, etc

Realistically, what time frame am I looking at before even approaching a bank or a broker to apply for a mortgage?

Thanks!

pcgtron

Your first problem is finding a small house in a London Suburb for £220,000

Depends on how far away from London you are willing to live and what side of town

remorseless

Hi pcgtron, I think that's debatable... there're plenty of small terraces (by house I mean terrace, not free-standing) within 30/40 min of a London main station.

It may not be in a desirable area like SW... there's life outside the SW!

pcgtron

Sorry, for me 30-40 mins from a mainline station is not a suburb of London. My train takes between 34 and 51 mins to get to Euston and I definately don't live in a London Suburb

TBagpuss

I would suggest that you consider speaking to a mortgage broken who will be able to give you an idea of your options.

In the mean time, do what you can to establish some credit hisotory here. If you haven't already, open a bank account and get your wages paid into it.

Get a credit card (and pay it off in full every month)

If you are eligible to vote, make sure that you are on the electoral roll.

In terms of buying a property, aim to have a deposit of at least 10%. If you can manage more, do - the higher your deposit, the better deal you are likely to get on your mortgage as the risk to the lender is lower.

As you have been overseas and have no financial history here, you may find that you need a higher deposit, which is where speaking to a broker for more specialist advice about your particular situation will help.

ccbrowning

Do you have ILR (Indefinite Leave to Remain - permanent residency visa) or are you a British citizen or EU national? Without any of the prior, you will need a larger deposit (varies from lender to lender).

You'll have a hard time getting a mortgage for a few years in my opinion. I've been here almost 7 years now and have had a credit card for 4 and it's all easy enough for me, but it was a pain the 1st 3 years at least, even with a good job.

kingstreet

EU/EEA citizen, or from rest of world?

Visa status?

Amount of deposit?

UK bank account? Paid in sterling?

remorseless

Thanks for the feedback;
I have a EU passport so residency should not be a problem, I have been with my employer for over 5 years.
I have a bank account and I am paid in sterling... I have no requested a credit card cause I am not in need of one. Though maybe it's a good idea?

I will be looking at possibly doing 30K deposit and 190K mortgage.
I spoke with L&C Mortgages and they don't seem to believe it'd be a problem...

ccbrowning - why did you have problems? Seems very strange?

xylophone

Sorry, for me 30-40 mins from a mainline station is not a suburb of London.

London Borough of Bromley ( for example) is certainly a suburb of London - while you could do Bromley South- Victoria in about 15 minutes on a fast, you could easily be around 30 minutes on the train on the stopping service.

ccbrowning

remorseless wrote: »

Thanks for the feedback;
I have a EU passport so residency should not be a problem, I have been with my employer for over 5 years.
I have a bank account and I am paid in sterling... I have no requested a credit card cause I am not in need of one. Though maybe it's a good idea?

I will be looking at possibly doing 30K deposit and 190K mortgage.
I spoke with L&C Mortgages and they don't seem to believe it'd be a problem...

ccbrowning - why did you have problems? Seems very strange?

Hi

The problems are that when you apply for any kind of credit (mortgage or otherwise), you'll have some computer system doing a credit check. Without a history, it will probably fail you. The bank has no way of knowing if you have outstanding debts in your prior residence country, never paid on time, etc.

financially_challenged_2

Things that could help build your history:

Get on the electoral roll.
Request an overdraft option from your current bank.
Get a mobile phone contract and/or get a utility bill with British Gas (as this one shows on credit reports).
Get a credit card and always pay it in full. (for this one you might have to wait for a while... 6 months or so).

And I think your long-term employment history will help your case.

Last but not least, Halifax is one of the lenders who are friendly to newcomers.