Expat Mortgages

Richie079

Hello all

I am a UK citizen but have worked overseas for the last 5 years and am now looking to join the UK housing market. Unfortunately as an expat I seem to have unknowingly stumbled into a minefield.

My own bank told me I need to open a special account with £25000 and must not go below that for the life of the account or they will fine me £20 every month I am under that. Then an only then can they assist me with a mortgage. Needless to say I am unwilling to fork out 25 grand as well as a deposit etc etc.

from memory HSBC said basically the same but they wanted 40 grand.
I told both banks I will open the account instantly take all the money out and you can fine me 20 pound for life. Apparently I'm not allowed to do that.

Brokers I have spoken to told me I need a minimum of a 35 percent deposit so on 150 thousand pound home I'm looking at nearly 40 grand before I even begin.

I have looked at shared ownership deal but they just seem like a trick with their rent costs etc and don't seem like a sound investment.

What I am getting to is this. Does anyone have any knowledge or experience in expat mortgages, are the things I listed above my only options and am I caught in this horrible trap until I decide to return home (whenever that may be)

amnblog

You are buying to let, or to live?

The smart move would be to ask a Broker to assist you.

Mainstream lenders tend to want to help only for the higher borrower.

Richie079

amnblog wrote: »

You are buying to let, or to live?

The smart move would be to ask a Broker to assist you.

Mainstream lenders tend to want to help only for the higher borrower.

Thanks for the response.

I understand a broker is my best point of call but like I said the couple I've spoken with are telling me it's at least 40 grand and feel like I'm not getting the best possible responses.

I'm looking to buy to live in. I'm looking at 200 grand houses so suddenly with a 35 percent deposit plus charges plus furnishing a whole house we are into the realms of 60 grand plus. as you can imagine that's less than ideal.

Iif this 35 percent thing is true I just can't wrap my head round why I should be for want of a better term punished like this just because I work overseas!?

davidmcn

Richie079 wrote: »

Iif this 35 percent thing is true I just can't wrap my head round why I should be for want of a better term punished like this just because I work overseas!?

Because you're a bigger risk to lend to than someone who lives in the same country as the bank.

Richie079

:AForgive me for being ignorant or stupid here but, I'm at no greater risk of losing my position than anyone else in england. Even if I fail to keep up repayments the house gets repossessed like any other if I'm in the country or not.

I realise that any amount of crying about it changes nothing but I am still bitter about it none the less.

And the thing is, I do live in the same country as the bank, I just happen to work elsewhere

davidmcn

Richie079 wrote: »

:AForgive me for being ignorant or stupid here but, I'm at no greater risk of losing my position than anyone else in england. Even if I fail to keep up repayments the house gets repossessed like any other if I'm in the country or not.

Yes, but if there's a shortfall the bank will want to recover the rest from you, and I expect experience has told them that people who work overseas are more likely to stay overseas (and therefore be more difficult to trace and/or squeeze money out of) than those whose entire life is in the UK. Lower LTV ratio means more chance of them being able to get all their money back via repossession rather than having to worry about all that.

Richie079

I know you're right, and it's nothing I haven't thought of I'm just very bitter about finally getting myself in a position to buy a house on my own only for it to kept slightly out of reach still because of one tiny detail.

Hence why I've come here to get some hopefully honest and impartial advice

rexmedorum

Any reason not to buy in whichever country you're life is in or were you intending to come back in the next few years?

Richie079

rexmedorum wrote: »

Any reason not to buy in whichever country you're life is in or were you intending to come back in the next few years?

I work Saudi Arabia which is not a place I see my long term future and I have an end game I want to return home permanently and this is the start of the plan and journey

rexmedorum

Fair enough. Would buying with a parent or using a guarantor be an option perhaps?

Skibunny40

If you're not immediately going to be living in the property, could you rent it out and get a BTL mortgage? No idea if this is a feasible option, just trying to think out of the box.