Are we going to have any trouble getting a mortgage?

kunekune

Hi. I returned to the UK (West Yorks) with hubby and two young children about a year ago, after living there for over 20 years. The last time we owned a house in the UK was in the mid 80s - no problems with it (shared ownership). We have owned property in NZ most of the time in between, and sold that to come here. We have very little savings, despite being in our mid 40s - about £18,000 at the moment, though it is gradually going up. We both have fairly good jobs - a joint income of around £75,000. We are renting at the moment but would like to feel more settled. We have a maximum of a year left in our current place, but finding another could be difficult: twice recently I've enquired about alternatives and the agents simply don't arrange viewings. There are only 3-4 3 bed properties at any one time in the area where we need to live.

I have spotted a property that I really like - mainly because of the large garden and the leafy location. It's a bit small, but it is also only on at £184,000, and I think we can declutter and manage. Obviously we meet the lending criteria on paper, but I'm worried about the following things:

1. Our lack of a UK credit history (we have no debts and no credit cards)
2. Having to pay HLC (since the stamp duty will eat up a fair amount of our savings)
3. We will need a shorter term as we are 46 and 47
4. The difference between the mortgage and what we are paying in rent at the moment is slightly more than what we have been saving

Any thoughts from the experts?

herbiesjp

In answer to your points:

1) It can cause problems, but there are lenders that will be happy to look at your application
2) Not all lenders will charge a HLC
3) Plenty lender will go over age 65 if you want, so that could be anothe roption for you
4) The monthly mortgage cost will depend on the term you select (on a repayment mortgage), so this could be more manageable if you went for a term longer than you have budgeted for

kunekune

herbiesjp wrote: »

In answer to your points:

1) It can cause problems, but there are lenders that will be happy to look at your application

Would it help that hubby works for HBOS, and has gone through FSA approval? They checked our NZ credit history for that. (We don't really want one of their mortgages, as they seem to be on the pricey side).

herbiesjp

A good employment history is important, as well as being on the electoral roll, good address history etc.

Based on your incomes, and the amount you want to borrow, you should be fine. Have a word with a good whole of market adviser, as this should be straightforward

kunekune

We're very 'respectable' professionals, so should be ok, I think. But the urgency has gone as DH nixed this house - probably for good reasons (how can anyone think a room that isn't much more than 6 foot square is a "third bedroom"???? So we are still 'vaguely looking' and 'not really looking'.