UK Debt

Old Jan 3rd 2009, 10:44 pm
  #1  
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Location: Newcastle, England
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Default UK Debt

Hi,

I've just applied for emigration via the Skilled (Sponsored) 176 route and had a few questions to ask about some debt that may leave in the UK (assuming I get accepted) and if anybody has any experience in it, I've had a quick flick through the forum but I cant find anything that really covers what I'm after.

I have a house which I have only recently purchased as a first time buyer so still have the majority of the mortgage still to pay c.90%. I intend on renting my property out, so I have a fall back if things don’t work out in Australia. The rent would pretty much cover the mortgage payments. My questions are:
  • do I need to inform my provider that I am leaving the country if I intend on paying the fees. I do not bank with the provider.

I have a credit card debt which will be pretty much paid off by the time I leave the UK. I fully intend to pay the debt off after I moved to Australia as I don’t want anything outstanding on my credit history if things don’t work out. My questions are:
  • is there a cheap way of transferring money from Australia to the UK I have done this in the past and it has cost me quite a lot of money considering the amount I was transferring?
  • do I have to notify them that I am leaving the country if I intend to pay it off. I do not bank with them so they will not be able to tell that I have no salary in the UK. My only concern is that they will say pay the debt upfront and I'll be left leaving the UK to start my new life in Australia with no money?

I also have a student loan with The Student Loans Company and I will have money left on that. When I signed up to the loan I seam to remember that there was a clause that said that if you worked out of the UK for 5 or more years the debt was forgiven (I don’t remember if I read it or if it was just conjecture between my friends). I've looked on the SLC's website and they are saying that I have to contact them and arrange to pay 9% of my new salary over a certain limit back to them. My questions are:
  • does anybody know if there is/was a clause about SLC forgiving debt for overseas workers?
  • how do they go about ascertaining my salary in Australia as my current payments come direct from my pay as a tax, do I have to arrange to make payments similar to the credit card debt and then having to transfer even more money?

Hopefully that all makes sense.

Thanks in advance
Stephen
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Old Jan 4th 2009, 1:39 am
  #2  
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Default Re: UK Debt

Originally Posted by HHCF
  • do I need to inform my provider that I am leaving the country if I intend on paying the fees. I do not bank with the provider.
Check with your provider that the rules of your mortgage ALLOW you to rent it out - you may have to switch to a buy-to-let mortgage. Also, while the rent may "almost" cover the mortgage payments, what about other fees? Estate agency (to manage the property "on the ground"), maintenance, etc. Also what if you can't get tenants?


Originally Posted by HHCF
  • is there a cheap way of transferring money from Australia to the UK I have done this in the past and it has cost me quite a lot of money considering the amount I was transferring?
You could try OzForex or HiFX (I've seen them mentioned on here but I've never transferred money back to the UK, only brought funds over on the occasional basis)

Originally Posted by HHCF
  • do I have to notify them that I am leaving the country if I intend to pay it off. I do not bank with them so they will not be able to tell that I have no salary in the UK. My only concern is that they will say pay the debt upfront and I'll be left leaving the UK to start my new life in Australia with no money?
Where do you propose they send your monthly statements to, if you're going to be over here? When we moved here, we carried on using our UK cards for a few months (until our UK house sale completed and we paid them off in full) and we didn't tell them we had moved, but I had set up a mail redirection for 6 months anyway so it wasn't too big a deal. As soon as we had paid them off I told them we were overseas and that was fine.

Originally Posted by HHCF
I also have a student loan with The Student Loans Company and I will have money left on that. When I signed up to the loan I seam to remember that there was a clause that said that if you worked out of the UK for 5 or more years the debt was forgiven (I don’t remember if I read it or if it was just conjecture between my friends). I've looked on the SLC's website and they are saying that I have to contact them and arrange to pay 9% of my new salary over a certain limit back to them. My questions are:
  • does anybody know if there is/was a clause about SLC forgiving debt for overseas workers?
Don't know as no experience of it. If there *was* a clause but it's no longer there, then it's a moot point. If the rules now say you have to pay 9% of your salary over a certain amount, then that's what you have to pay? Why should they let you off paying it back?

Originally Posted by HHCF
  • how do they go about ascertaining my salary in Australia as my current payments come direct from my pay as a tax, do I have to arrange to make payments similar to the credit card debt and then having to transfer even more money?
They will know your salary because you will be upfront & honest with them about it and tell them what your salary is. I don't know if they can take it directly from your Aussie salary, I doubt it to be honest. So yes, you will have to make arrangements to make regular payments.

HTH a bit

TillyG
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