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Taking a loan in the UK as a non resident UK home owner?

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mbzon
mbzon Posts: 43 Forumite
Sixth Anniversary 10 Posts Combo Breaker
I need to borrow around 15k, for personal reasons. I own a house in the UK, but I currently live in Spain and my only regular income is my pension. Is there any way to borrow against the house (which I plan to sell soon anyway)? Or any other options that might work for me?

I am technically still registered there, but as I haven't been back in over a year because of covid I'm guessing I must deregister as a resident there asap.

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  • Brie
    Brie Posts: 14,797 Ambassador
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    edited 6 July 2021 at 5:47PM
    Due to Brexit some banks won't be interested in doing business with anyone living in quite a few Euro countries.  I would have thought it might be more straight forward to get a load in Spain - but I have no idea of their banking system.
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  • mbzon
    mbzon Posts: 43 Forumite
    Sixth Anniversary 10 Posts Combo Breaker
    Brie said:
    Due to Brexit some banks won't be interested in doing business with anyone living in quite a few Euro countries.  I would have thought it might be more straight forward to get a load in Spain - but I have no idea of their banking system.
    Even with a house there as collateral? 

    I was actually supposed to have sold the house by now, but covid has made everything difficult.
  • Nebulous2
    Nebulous2 Posts: 5,673 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Houses are selling very well just now in most of the UK. Getting a move on to sell as quickly as possible is likely to be your best bet.

    Lenders like income. They want you to pay off your loan directly, rather than having to mess about with security, and possibly repossessing assets. 
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Secured loans are normally high interest and high set up fees.  Try and get a quote if you must have £15,000 right now or speak to your Estate Agent and get the house sold. 

    Covid has changed the way we live, but people are still buying houses.
  • mbzon
    mbzon Posts: 43 Forumite
    Sixth Anniversary 10 Posts Combo Breaker
    edited 8 July 2021 at 1:10PM
    What about something like a bridging loan? Or if I had started the selling process of the house, would a bank lend me the money for a short period until after the house was sold?

    The interest rate is not so important, of course I want the lowest rate possible, but a high rate is a better option than no loan at all.
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