bluebossa

Hi there,
Wondered if you could share your thoughts. Here is our dilemma.

We sold up last year in the UK and are now UAE residents renting and working in Dubai.

Debating now whether to Buy a house again or just save hard and lock the money up?

Should we have a house in the UK, we do intend to return someday or should we just rent and save

We are in our 50s.
Further...
Should we take out a Mortgage to buy something decent or use some cash to buy something small like an Apartment?

Your thoughts would be welcome.

Been in Dubai 18 months now. Work in Consulting for Digital projects.

Millhouse

No expat lives here forever.

mission

err you should definitely have some kind of property back in the UK as a safety net in case for eg, you get kicked out of any foreign country.
I am surprised you sold your property, particularly being in your 50's. Remember most lending companies will only allow you to take a mortgage up to the age of being 60/65 and so the longer you leave it, the higher the mortgage repayments will be, due to the lesser mortgage period.

mikelincs

also it is a lot more difficult than it was to get a mortgage if you are NOT living in the UK, the number of firms offering such mortgages has dropped considerably over the last few years.

Shawlands

You know, everyone says that, however in my experience HSBC & YBS couldn't bend over backwards enough to sort out mortgages for me - being non-resident just wasn't an issue.


To the OP's question, I like the idea of stockpiling cash, it puts you in a much better position when you want to offer on a property. If you buy now, you will need some reliable to be able to check up on the property and take care of it - sounds simple but in reality will be a burden and you'll have ongoing costs (council tax, standing charges etc) which are a pain.

Meow

The right/best course of action depends on your specific circumstances, your financial situation and plans. Impossible to say (with my professional head on) what is right for YOU without a lot more information (which you should not share publicly) and knowing you.

Advising people is what I do. Not flogging things like too many 'advisers' who are just salespeople.

Sabi Star

Continually monitor property prices in the areas that interest you. It seems generally prices are not rising dramatically now across the board as they did a few years ago and prior to the new higher stamp duty ( in some places they are actually falling). The other thing is, of course, it is not easy buying in UK whilst living abroad if you want to view houses and if you decide to buy - it could take a long time to actually do so. It took me 3 years and unfortunately the market was rising sharply at the time.

mission

I am actually very surprised to hear this because as far as I know if you are not a resident in the UK it is extremely difficult to get a mortgage over there.
I looked into buying another property in the UK (with my bro) and my earnings out here were not taken into consideration at all because I wasn't a UK resident, even though I earn more than my bro.

Meow

That's not right. We arrange UK mortgages for UAE resident expats every week. Your overseas income can be taken into consideration. It's a different market but you just have to know what you're doing.

I suspect that whoever you spoke to isn't used to dealing with expats as it's a different market and most high street lenders can't/won't help. We have a large panel of lenders though and provided people meet the criteria (min deposit of 25%, min purchase price of GBP 150,000, min loan GBP 100,000 and income to service properly) it shouldn't be an issue.

mission

is that a requirement to get a mortgage on a property in the UK?
I know it's a requirement to get a mortgage out here, but didn't know it was the same for getting a mortgage in the UK

Meow

Not for UK residents but it is for non-residents. Standard guidelines for all UK mortgages for expats.

Then you need to add in all the fees, so best to allow 30% really.

mission

so pretty much the same financially requirements to get a mortgage out here as an expat.

Meow

It's more expensive here as we reckon you need around 8% to cover fees, plus it's a less mature and stable market.

Brains1983

Yup, as Meow mentioned, roughly 30%.

I'm looking at a property in Aberdeen right now. Valued at 180k, likely to get it for 164k

Deposit (25%): 41,0000 GBP
Valuation Report: 173 GBP
Home Buyer Report: 383 GBP
Building Survey: 695 GBP
Stamp Duty: 380 GBP
Additional Stamp Duty (Overseas Buyer): 4,920 GBP
Soliciter Fees: 1,500 GBP - Estimated
Search Fees: 350 GBP - Estimated

Refusing to have any of the above tagged onto the mortgage, so that's an upfront total of 49,401 GBP required in cash.

On a purchase price of 164,000 GBP, that's 30.3%.

B

mission

Definitely a lot of 'cash' needed up front, mainly coz of the 25% deposit.