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Buying a House possible when I move back?

Buying a House possible when I move back?

Old Feb 11th 2014, 6:00 pm
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Default Buying a House possible when I move back?

Hi

I am a British citizen living in the US, married to a US citizen with a 3 year old son (born in USA). I am a Green Card holder.

We are considering a move back to the UK, to be closer to family.

I have been living in the US for 5 years - will it be possible to buy a house in the UK (with a mortgage) when I return? We would have some funds for a down-payment through the sale of our US home but I am concerned that I may not have any credit history any more, necessary for a mortgage. In the US my credit is currently very good, if that counts at all.

Has anyone been in a similar situation and able to offer any advice?

Thanks
AT
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Old Feb 11th 2014, 7:01 pm
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Default Re: Buying a House possible when I move back?

Do you still hold a UK bank/building society account?
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Old Feb 11th 2014, 7:03 pm
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Default Re: Buying a House possible when I move back?

Yes, I still have my UK bank account open.
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Old Feb 11th 2014, 7:18 pm
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Default Re: Buying a House possible when I move back?

I didn't have any credit problems when I returned as I did the same. Admittedly I haven't applied for a mortgage but my tenancy checks and credit credit applications have gone through without a hitch.

Probably best to contact your bank's mortgage advisers and see what they think.
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Old Feb 11th 2014, 7:19 pm
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Default Re: Buying a House possible when I move back?

thanks, I will do that
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Old Feb 12th 2014, 3:00 am
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Default Re: Buying a House possible when I move back?

You could probably apply a mortgage while you are in the US since you still have got a job. There are some banks in the UK that would offer financing for British expats
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Old Feb 12th 2014, 3:56 am
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Default Re: Buying a House possible when I move back?

Have you considered getting US citizenship before you leave, to give you the option to return if you ever want to?
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Old Feb 12th 2014, 12:09 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by Pulaski
Have you considered getting US citizenship before you leave, to give you the option to return if you ever want to?
Yes, I am considering this but undecided. I'm unsure what it would mean in terms of taxes.

It would be nice in my situation (US wife and US born child) to have the option of returning to the US as I pleased.

But I am aware as a USC my worldwide income would be taxable. Pulaski, do you have any first-hand experience of this? Is it a nightmare to do the taxes each year as a USC living in the UK?
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Old Feb 12th 2014, 12:21 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by Indianabound
Yes, I am considering this but undecided. I'm unsure what it would mean in terms of taxes.

It would be nice in my situation (US wife and US born child) to have the option of returning to the US as I pleased.

But I am aware as a USC my worldwide income would be taxable. Pulaski, do you have any first-hand experience of this? Is it a nightmare to do the taxes each year as a USC living in the UK?
There's a useful thread just below this one about the pros and cons of maintaining US citizenship.
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Old Feb 12th 2014, 2:19 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by Indianabound
Yes, I am considering this but undecided. I'm unsure what it would mean in terms of taxes.

It would be nice in my situation (US wife and US born child) to have the option of returning to the US as I pleased.

But I am aware as a USC my worldwide income would be taxable. Pulaski, do you have any first-hand experience of this? Is it a nightmare to do the taxes each year as a USC living in the UK?
I don't have personal experience, but unless your income exceeds $90k-ish, there isn't even the theoretical possibility of paying US taxes, and tax credits will likely offset any tax liability if you earn more than that, unless you work in a low tax/no tax country, such as in the Middle East.

Last edited by Pulaski; Feb 12th 2014 at 3:51 pm.
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Old Feb 12th 2014, 3:27 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by Pulaski
I don't have personal experience, but unless your income exceeds $90k-ish, there isn't even the theoretical possibility of paying US taxes, and tax credits will
Good to know thanks.

We file jointly in the US and as my wife would be a USC on a visa we would still have to file for her. So maybe filing is not such a big issue if I were to be a USC also (we'd have to file something anyway as I'm a Permanent resident and my wife is a USC). Just not sure how the credits work exactly and I had heard it was a headache.
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Old Feb 12th 2014, 4:31 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by Indianabound
....
. Just not sure how the credits work exactly and I had heard it was a headache.
Credits basically mean that for every $1 you pay in tax in the UK your tax bill in the US is reduced by $1. As tax rates are higher in the UK, unless there is some dramatic change, it is highly unlikely that you would ever owe income tax to the US, with the possible exception of if/when you start drawing on your British private pension and you take the 25% lump sum.

Last edited by Pulaski; Feb 12th 2014 at 5:05 pm.
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Old Feb 12th 2014, 8:21 pm
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Default Re: Buying a House possible when I move back?

What are your job plans? Will you carry on in a similar line of work when you get to the UK?
IE If you're a project manager moving into a project manager job that can help support a mortgage application.
How hard it is to secure a loan will depend on the proportion of deposit and the income relative to the loan.
So loan as your credit record is clean and no payments missed there should be options for you.
(Very few lenders deal in expats at the moment)
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Old Feb 12th 2014, 9:19 pm
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Default Re: Buying a House possible when I move back?

Originally Posted by mayhemuk
How hard it is to secure a loan will depend on the proportion of deposit and the income relative to the loan.

So long as your credit record is clean and no payments missed there should be options for you.

(Very few lenders deal in expats at the moment)
require more details on this one

what is the minimum criteria for a recently returned ex pat to get a mortgage - one in the age group age between 30 - 50?

and why is it different for a non-expat?
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Old Feb 14th 2014, 4:16 pm
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Default Re: Buying a House possible when I move back?

not2old - the criteria are generally the same for all applicants.
Income and affordability are important as are credit history.
There are so many different criteria and different lender policies which is why brokers exist to help people who do not have a straight forward situation.
Policy is sometimes tweaked by lenders for specific markets EG first time buyer features.

Expat vs non expat? They aren't treated differently.
If you are currently an expat IE living overseas it is generally not possible to get a UK loan.
If you are an ex expat IE back in the UK with work history (or have never been out of the country) deposit and income then you should be in a decent position to get a loan that conforms to a lenders policy and criteria.

Even if you're 55-60. If your income, deposit and credit score support your application you should be able to secure a loan. Now whether it's a loan that you think you should have or deserve....
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