Mortgage as an expat with low credit score

BritinUSA

Hi Guys,

Be gentle with me, I am new here!

So I have been living in the USA for 4 years, but just purchased a house in England outright that I want to renovate as my future home.

I want to release some money from it for renovation. I am trying to open a HSBC Expat bank account, in hopes of them giving me a UK mortgage, whilst still living and earning in the states.

My UK credit score is very low, as set up all my utilities at the same time, and it knocked my score down with the numerous searches. Also, I had some adverse credit (defaulted payments) at the end of my relationship before I moved out to the USA in early 2014.

Will my credit matter a great deal, given I own the house? Is it a reason for refusal of a mortgage?

Many Thanks

PersianCatLady

BritinUSA wrote: »

Hi Guys,

Be gentle with me, I am new here!

So I have been living in the USA for 4 years, but just purchased a house in England outright that I want to renovate as my future home.

I want to release some money from it for renovation. I am trying to open a HSBC Expat bank account, in hopes of them giving me a UK mortgage, whilst still living and earning in the states.

My UK credit score is very low, as set up all my utilities at the same time, and it knocked my score down with the numerous searches. Also, I had some adverse credit (defaulted payments) at the end of my relationship before I moved out to the USA in early 2014.

Will my credit matter a great deal, given I own the house? Is it a reason for refusal of a mortgage?

Many Thanks

I opened all of my utilities at the same time in my new build house and it didn't affect my credit score at all so I am surprised to hear this.

Just out of interest, does anybody else here have any experience of acredit score being lowered just because of setting up utilities?

BritinUSA

My score was only just recovering from previous issues. NPower searched me for both gas and electric, then BT searched also, I upgraded my 02 mobile contract, and my score dropped massively. Cant see any other reason it did, but its annoying !

Voyager2002

A reminder that the credit score that you see is absolutely meaningless. What counts is the information held on your credit file: each lender will have its own confidential procedures to produce a score from that information. The CRA also uses the information to produce a score, but we do not know how its method differs from that used by lenders.

Anyway: whether or not setting up utilities affects the credit score you see tells you nothing at all about how lenders view you. A default four years ago is far more likely to be a problem, but after a little time it will be a default five years ago (less of a problem), and then it will drop off your record completely.

Nasqueron

In the US the credit agencies have a lot more power and the score they use has weight, in the UK the score is made up, only you see it and it has no relation to what you can borrow, lenders score you themselves based on your record. Whether you can borrow or not depends on your credit history and how much debt you have Vs income. If you are not based in the UK and don't earn here lenders will be less keen to give you money given it will be harder to get it back if you default. You really need to provide more details such as how much mortgage you want, earnings and how much the defaults were etc. These will be in your file until 2020 so would be less attractive to a lender. Can you pay them off or save money first (the money you would be paying back on a loan) then try?

BritinUSA

Hi Nasqueron, Thanks for the reply!

So I have a HSBC account here in the USA, and one in the UK that are linked. HSBC will give UK mortgages to British citizens, through their expat account, which I am in the process of opening. I am guessing this will sit in the middle of the two accounts and have history from both, maybe?!

I have no debit in the UK, defaults were paid off, but I have had little history since, in the past 4 years as I have been gone. I began trying to build my credit score back up in the UK when I brought the house back in May, but seems this has caused my score to drop again.

I brought a house cash, for 240 and now want to release maybe 160/180.

I am self employed but have two years of US tax returns as evidence of my income.

Being totally new to all this, I have no idea what can or cant be done.

Thanks in advance.

[Deleted User]

BritinUSA wrote: »

I began trying to build my credit score back up in the UK when I brought the house back in May, but seems this has caused my score to drop again.

Again - you may as well try to changed the colour of unicorn p!ss.

Credit scores in the UK are largely fictional and purely for entertainment purposes.

BritinUSA

I guess I keep expecting 'computer says no' like here in the USA, but as was explained earlier, its a whole different football game

Thrugelmir

BritinUSA wrote: »

I began trying to build my credit score back up in the UK when I brought the house back in May, but seems this has caused my score to drop again.

Until you are resident again in the UK. Your credit file will continue to wane.

Nasqueron

I'd suggest speaking to a broker or mortgage advisor who knows that market and could find a suitable mortgage for your situation, even if debts are settled they still count against you