katdan28

Hi, has anyone experienced buying a house in the UK? We live in oz but have seen a house we want to buy in the UK for when we return home however are struggling to get a mortgage as apparently banks can't lend to Australian residents. We've tried brokers but they will only give a mortgage on 60%Ltv on a higher purchase price than we want to pay for this house. Would be grateful to hear of everyones experiences and possible options. Thanks

Beoz

No experience, but was speaking with someone who cannot change lender in UK because they are resident in Oz. So they are stuck with the same bank.

curlytops

Been trying myself too, with no luck. Wanted an investment property putting 50% down as deposit. No UK lenders were interested, unless I was prepared to pay 10% interest. The rent would have easily covered the mortgage, yet I was seen as a risk. F!?$ing madness. It was suggested I get an oz mortgage then transfer the money over. I was apparently talking to a financial expert when I had this conversation.
Even tried to purchase on 50% shared investment. Still apparently seen as a risk as I'm not a resident in the UK.
I'm frankly a bit astonished that the UK wouldn't welcome some foreign investment with open arms at the mo, especially when the investment is for real things with real money, rather than the virtual world that they would happily invest into not too long ago

Beoz

Its a real disappointment. So the big question is, are all the foreign investors buying the properties in cash or using the banks at the country of residenence. It's risky business using the county of residence. You are pushed into a real risk of currency fluctuation, and at this point of time, might work well if the earned currency is sterling.

It does seem amazing they won't look at you with 50%

Bermudashorts

We bought a house in UK before we moved back form Bermuda, for ourselves to live in. We had about 50% deposit, we were also able to demonstrate that Mr BS had a job to come back to, that did the trick and we had no problem at all. I don't know how much luck we would have had without those factors.

Beoz

Was that pre financial crisis?

Bermudashorts

It was 2008, so yes just.

Beoz

I wonder what they would do now. I bet they'd make you wait 6 months of full residency before offering you a resident rate.

DanSolihull

I have tried to do this but to no avail. If you find somewhere that does mortgages such as these then let me know.

Beoz

Don't know if this throws up any value. Google search. I'm sure you've all been down this path.

http://www.capitalfortune.com/expats...t=WyJleHBhdCJd

Beoz

And this is precisely the reason never to use a foreign bank to finance a mortgage in a different country.

http://www.smh.com.au/business/china...203-31vov.html

Alan Collett

http://www.gmtax.com.au/trusted-part...hor-mortgages/

Might be of interest to some ...

Best regards.

Famous 5

Did you have any luck finding a lender?

From my initial enquiries it seems that expats have fallen out of favour: there are very few options available and those that are on offer are not on very favourable terms.

evelina

We bought a house a couple of years ago when Halifax were offering great expat mortgage deals

Halifax no longer have expat mortgages, so looking for house no.2 this is what our UK broker has indicated now for a mortgage £100k+:
- 25% deposit
- rates from under 5% for 3yr variable to 5.49% for 5yr fixed
- 2.5% lenders arrangement fee
- £250 broker fee
- Valuation fee payable
- Max 75% LTV
- Rental income determined
- Client work ideally for a multinational – professionals considered e.g accountants, solicitors, managers
- Client must have some intention to return to the UK within the next 5/10 years
- Min loan of £100k - Interest only allowed
This still seems pretty reasonable, so I'd just go for it and see if you get accepted.

Best of Luck

Famous 5

Hi Evelina

Thanks for this.

Would you mind telling me who your broker is and I might follow it up with them.

We have used Halifax in the past, but this time we got no joy!

I am wondering whether it is worth it, but I could try this one as we seem to meet the criteria. The only aspect which is off-putting is the 2.5% lender's arrangement fee.

Cheers.

F5