curlytops

what are people's experiences with trying to obtain a mortgage on their return to the UK? Ive been away for about 8 years & have still got account with Barclays. I plan on moving back temporarily (maybe a year or 2) & want to purchase a buy to let in that time. I realise I'll need a job before any bank will lend, despite my hefty deposit. However, Barclays have told me I'd need a permanent contract & need to be in my job for 6 months before they'll accept an application. That seems an extremely long wait. Is this normal in the current financial UK climate?

Moses2013

Pretty normal these days and same in Ireland. Most banks will ask for 3-6 months pay slips and bank statements. You will also need a letter from employer that you have a permanent position (not in probation period).

dunroving

My mortgage is with Barclays/Woolwich, though I got it back in early 2007, so anything I say about the "how" would not be relevant today since the goalposts have moved a lot in the past 8 years. However, I think Woolwich is one of the better providers.

If you plan to move overseas again (why did I think you were already back in the UK???), you should try to find out if that will affect your mortgage agreement (e.g., whether you'd have to switch to an expat mortgage). Many banks are going down this route of looking to change your mortgage if your conditions change.

Also, get a "lifetime" mortgage (i.e., not a fixed-term deal) as if you get a fixed-term deal and the SVR it reverts to at the end of the fixed term is rubbish, you may have great difficulties remortgaging once you are back overseas again.

One thing is for sure - getting a mortgage is much harder now than it was before the banking meltdown.

Tom Sawyer

Yep, pretty much as you say. I got back in July expecting to be able to get a mortgage on my confirmed job offer and only wanted to borrow about 50% of purchase price, and like you I had maintained a UK bank account whilst away. Got a mortgage broker onto it, but no-one would lend to me until I had at least 3 payslips and completed any probation in my new job. To complicate matters, even the rentals would not really consider me unless I paid 6 months up front as I would fail their credit checks on the same basis.

Things like this are really tight now. I applied for a credit card with the Halifax last week and had to go into a branch for a half hour interview which was mostly spent confirming that I understood what I was getting myself into

Downton Gabby

Dunroving, you're thinking of CURLEYTOPS with an "e" . This is a new person.

I was confused at first, too.

dunroving

Blimey, that is confusing!!!

Just as long as the new Curlytops doesn't steal "our" CurleyTops' picture, hopefully I will manage to figure out who is who!

curlytops

Thanks for the info & I didn't realise there was another curly tops! Though I've posted only a few times over the years. I'm currently in France, & planning a brief stay back in the UK. I'm tempted with a new 10 year fixed low rate mortgage from the Woolwich. I could clear the mortgage in the period, so wouldn't need to worry about finding an another lender if I was out of the country.

dunroving

Just curious what the rate is? Is it a fixed 10-year (I think I read Woolwich were bring out a 10-year fix at a very good rate)?

If you are sure you can make the payments and aren't cutting it fine this sounds like a good deal.

I took out a shorter-term (15 year) mortgage in the US in 2001, but soon found the monthly payments were making things a bit tight. Plus the lender would give me a longer term and not penalise additional lump sum payments. I eventually switched to a 30-year and made extra payments when I had the cash but felt more comfortable in terms of having some wiggle room with finances.

mayhemuk

You will need some employment history.
You might squeak through with a couple of lenders if you are moving internal to an organisation so are continuous service.
Depends on the loan to value and loan to income.

The Woolwich/Barclays deal is 2.99% for 10 years. Max LTV is 60%.
ERC is 6%.

BTL is not available unless you already have a property in the UK.

I've heard HSBC might do a freestanding BTL but not investigated it fully.

curlytops

Yes, it was the 2.99% rate. Does anyone know if it's possible to keep an initial residential mortgage and change to a BTL a couple of years into the loan term?

dunroving

It's harder than it used to be, and especially if your circumstances change in the meantime, the same lender may not approve the remortgage.