Info needed in getting a mortgage

Bornwild

Hi 😊
I am currently living abroad doing my nursing degree, i finish in may next year and i want to move back to the UK, my home country.
I want to get a mortgage but i am abit worried my credit rating in the UK is not good, i had a debt and did not pay it off before moving abroad in 2016.
I left england as i found a country where i could do a degree for free and wanted to turn my life around and could not afford to do a degree in the UK.
What do u need to do to get a mortgage?
When i return i am hoping to work full time at hospital.
I understand you need a regular income but for how long for to show for a mortgage? Also i have a lump some of money (nothing huge) around 20k what i would use towards my mortgage aswell.
Would i have any chance to be accepted or it will be a no?

Any info please do share
Thank you
😊

bekabyx

I'm not an expert, I'm just somebody who applied for a mortgage recently and did a bunch of research beforehand.

If your debt is still active then it might be bad news. I'm not an expert, but I know lenders are being tough on this sort of thing right now (especially if you're looking at 85% - 90% LTV).

My mortgage application required 3 months of payslips and 3 months of bank statements from both me and my partner. We applied for a 90%LTV mortgage which is roughly 2x our combined salary.

I'd advise speaking to a mortgage broker closer to the time when you're looking at buying a house, and try paying off any remaining debt several months before that time. They'll be able to advise you on whether there are any suitable products.

Lenders have their own criteria, not just credit reports, but get a copy of your credit report so you can get a feel for how bad things are with the debt. Defaults stay on there for 6 years!

MovingForwards

Being outside the UK for 4 years also will not help. You will may need to be back for 2 - 3 years. Depending on where you are looking to buy, you may need a bigger deposit too.
Generally it's 4.5x your income that could be lent to you, plus you have your deposit on top. How does that fit with the cost of property you've been looking at online?

A good broker should be your second point of call when you've returned.
First point of call is finding somewhere to live, getting a job, getting on the electoral roll and seeing how all your credit reports look.

Perhaps @haras_n0sirrah (a broker who posts on MSE) is able to offer a little more insight.

haras_n0sirrah

Firstly check your credit report and see what has been recorded. That will be the most important thing

Bornwild

Thanks for your replies 😊 i am looking to go south devon, house range between 150k to 200k. 
The debt is from a over paid benefit i think around 3k what i will look into paying soon.
I am looking to rent for awhile when i come back or to stay at my mums were see whats best, maybe she can put me on the electoral roll.

Not the answers i hoped for, maybe will be a better option to sell my house abroad. Its complicated, me and my husband are parting our own ways, he wants to stay i want to go, i was going to take the kids and return soon as i graduate. 
I was going to sign my share of the house in malta to him to keep things civil as i am seen as the bad person for wanting to move back and breaking up a family. 
Maybe would be best to sell up and take my share than return with a higher amount in my pocket. Feel so cruel though.

monetxchange

I think even paying the debt off won't remove it from your credit file if it's been left to sit there in default for four years. You may be looking at another few years letting it drop off the file after it's satisfied.

Thrugelmir

Bornwild said:

Maybe would be best to sell up and take my share than return with a higher amount in my pocket. Feel so cruel though.

You need to provide a home for children once you return.