Mortgage in the UK & OZ
 

Does anyone know if when calculating the ammount of mortgage an Australian lender will give you for a property in OZ they take into consideration any mortgage you have in UK?

We are thinking of buying a small house for MIL in UK (puts OH mind at rest about her security - hence makes it easier to leave her here) with some of the £ we get when we sell our UK house. However, we will still need a small mortgage (which will be covered by MIL rent) and we will probably need a sizable mortgage for a property in Perth.

Does anyone know of any problems with doing this?

Thanks in advance :)

Re: Mortgage in the UK & OZ
 

The vast majority of Australian lenders, like those in the UK, will require you to provide details of your liabilities - this includes mortgages and other loans. This will effectively reduce your lending capacity in Australia by the amount of your loan in the UK, or even more - because banks tend to take account of your debt, but not all of your offsetting income because it is usually not considered secure.

Expats are usually surprised by lending multiples in Australia so you still may be able to qualify for the loan you want/need - there are firms that are more flexible regarding multiples and qualifications but, as usual, you pay the penalty in higher interest rates.

One thing to consider - it is not that easy to get a UK mortgage once resident in Australia on a AUD salary - particularly if in new employment. If you need one, get it before you leave the UK.


F

Re: Mortgage in the UK & OZ
 

They also take into account the number of children you have, and the limit on your credit cards - not the balance, the actual credit limit!

Re: Mortgage in the UK & OZ
 

Different lenders have different criteria for calculating what you can borrow, so you may be able to get more with one lender than another.

You will need to have enough funds to cover the deposit (minimum of 20-30% required depending on your status) and fees. On a home in Perth of say $400,000 you would be looking at purchasing fees of around $20,000 and a deposit of $80-120,000 depending on the size of deposit you would be required to pay. You would of course need to be able to service the loan taking into account any allowances used for the currency exchange rate. It can get confusing so I wont go into further detail just now.

If you would like specific information send me a private e-mail and I can get some details from you and put them thorugh my software. Give you an idea of what is achievable.

I work for a licenced broker office with access to a panel of over 30 lenders and 250 products so if there is a product out there that will fit your requirement I should be able to help you with it.

Any general questions feel free to post here.

Sharon
Accrete Financial Solutions