jbrierley

New to the forums, apologies if this belongs in another area.

My retired father (67 yrs) is moving back to the UK after 40+ years in the US. He would prefer to purchase a property, but information we've gathered so far looks like that will be difficult gives his age and lack of credit in the UK.

Are there mortgage programs for retired expats wishing to move back to the UK? We both have excellent credit in the US, and I wold be willing to co-sign a mortgage with him, but I don't believe our credit here in the US is valid there.

Thank you in advance for your feedback.

Pulaski

Mortgages in the UK for people close to retirement was discussed on this thread (posts 8-23) a few days ago. By all accounts it is reportedly extremely difficult, if not impossible, to get a mortgage in the UK if you are already retired.

SanDiegogirl

What is his income per annum and how much money can he invest in a property at his age?

Bermudashorts

I have found a number of lenders that will consider a mortgage for a 67 year old, including; First Direct, HSBC, Leeds BS, Yorkshire BS, Halifax, Virgin Money. However these will need to be short mortgages as most will want it repaid by age 75.

I have never heard of anything like a "mortgage program for retired expats" though and doubt such a thing exists.

If you are still in the U.S., then your guarantee would be worthless as unenforceable, so he would need to get this mortgage under his own steam. I think ability to pay by proving income will be more relevant than credit score, many people return and get a mortgage without having a recent credit history, I have done so twice.

Does he have a decent deposit and proof of regular income?

jbrierley

Thank you all for your input. @Pulaski, we've seen the same thing in initial research. As @Bermudashorts indicates, even if he can get one it is expected to be paid off within 7-8 years.

@SanDiegogirl, he could purchase a home outright, but this would leave him 'house poor,' as they say, with less flexibility to travel or even move back to the US if he decided to in the future.

We're going to start with getting him a vacation rental for 3-6 months so he can check things out more, and then take things from there. He does have a bank account in the UK, but has not applied for any sort of credit card yet. We'll do that quickly, as well, to start building his UK credit.

Thank you all again.

Pulaski

Under those circumstances, you should take a look at "reverse mortgages" then. They come with their own risks, and I am not a fan, but for some people under some circumstances they can make sense.

BTW I think you mean "house rich, cash poor".

rebeccajo

"House poor" is a commonly used term in the US. I've often heard it used. It's a phrase usually reserved for people who buy a more expensive house than they can truly afford.

Pulaski

What I have heard is "house rich, cash poor" (have "lots of house", but not much cash), which is why I suggested it.

Oh, and I live in the US too.

ETA: Google <house rich cash poor> and it produces numerous hits, all (the top ones are) in the US, describing EXACTLY what I was referring to - big house, no cash.

rebeccajo

Maybe it's regional then.

God forbid you be wrong.

Pulaski

Er, you "corrected" me first.

I am happy to believe there are regional variations, and only reported what I hear being used, and which does not preclude you hearing something different.

rebeccajo

Oh FFS.

Yes, I corrected you.

But you are the one who "corrected" the original poster. For what reason, I have no idea, as the correction offered nothing to the discussion.

jbrierley

Let's move on from the ironic conversation of appropriate colloquialisms

I was under the impression that reverse mortgages required you to already own a home and have equity in it. If that's not the case, we'll definitely add it to the list of options, and will absolutely be aware for any pitfalls with it.

Pulaski

But if you've bought for cash then you have 100% equity. Therefore the first question would have to be "Is there a minimum period for which you have to have owned it before a reverse mortgage could be approved?"

Other important questions would be, in relation to flexibility to move back to the US if your father wanted to, "Can the house be rented out?" And "What is the procedure if the owner wants to sell before he dies?"

Editha

Have you looked at the 'Home for Life' scheme? It might help. I've had some dealings with the company recently and found them helpful.

Also, have a look at the Age UK advice on equity release.

Editha

Two more alternatives:

One is a mobile home (trailer) development for retired people. There are several of these near me in Devon. They provide relatively cheap accommodation and a retirement community:Park homes and mobile homes, for sale and rent - Park Home Living

Another is buying sheltered accommodation. These have the advantage of being cheap to buy, but having high service charges, e.g.Delves House, Lewes, East Sussex, BN8 5EW | Sheltered housing, retirement housing, supported housing for older people

From your father's circumstances as described, I'd say the "Home for Life" scheme is probably most appropriate, but one way or another, you should find something suitable.