Okuda

Hey,

We are currently weighing up our options with moving back the UK.
For those who have, talk to me about mortgages. I still have my bank account with Natwest (although they've stopped doing Expat mortgages) I see HSBC does them.
We'd really prefer to buy when we move back rather than messing about with rentals.
How is the process, are we in for a ridiculous interest rate? This would also be my first time home buying in the UK.

Pros/Cons/Direction/Advice,

ta

Bermudashorts

I wouldn't be looking at expat mortgages. They are very hard to get and the interest rate would be higher yes. And you won't be an expat anyway, you are returning.

Do you have jobs in the UK to come to? When we moved back from Bermuda, we bought a house before moving back. We were able to do this as Mr BS was transferring back so had proof of future income. Also I maintained my UK bank account so was a long standing customer with a 50% deposit. We got a regular mortgage even though we lived overseas at the time.

Quokka

Having recently returned we were told by a mortgage adviser that we would need 2 years residency to get a mortgage.

Bermudashorts

Definitely not true as a rule. It may be a policy for some mortgage companies.

Okuda

Yes husband would still be employed in his current job, he'd just transfer to the British office (He is a British Citizen so no problems there)

We'd be able to do a pretty decent deposit.

How was the process for buying whilst abroad - is it a total headache? I'm assuming your got your self a decent estate agent in England and documents where digital?

Bermudashorts

The process of buying from overseas was no problem at all. Documents were couriered to and fro. I got a recommendation for a good solicitor, the estate agent I didn't get a say in!

Okuda

Ah, so we get pre-aprroved, I find a decent solicitor and the house we like and the solicitor takes it from there? I have no real idea about mortgages in England as we've only brought houses here in the states.

Editha

Unlike realtors in N.Am., UK estate agents are only instructed by the vendor.

You do your house-hunting yourself, nowadays by starting with a website such as Rightmove.

Once you've found a house you are interested in, you make an oral offer to the vendor's estate agent (it isn't a good idea to do it in writing).

If you are pre-approved for a mortgage that helps, because the estate agent will check out how you intend to finance the purchase before advising her client whether or not to accept the offer.

Once your offer is accepted, you instruct a solicitor, who will deal with the paperwork.You may also choose to instruct a surveyor to report on the property.

Compared with N.Am., transactions tend to take longer to complete; 8 - 12 weeks is average, I'm told. I must have been unlucky, because I've bought and sold six properties in my adult life, and none of them only took 8 weeks from offer to completion. The last one took 5 months.

Bermudashorts

I would talk to your current bank about it as a first step yes. I don't think you would have a lot of joy with a bank you are not currently an account holder with.

The estate agent will trigger the process once a sale is agreed, my point was that as a buyer, I didn't pick the estate agent the seller picks the estate agent.

Okuda

Do you mind telling me which company you did a mortgage though. I rang HSBC mortgage today and she insisted I had to be living in the country to start the mortgage process and this is across the board, it's not just a HSBC policy, which seems a little odd to me as so many people buy houses in the UK whilst still aboard.

joelsa

Hi there, it might be worth getting some advise from an independent mortgage advisor. We have one who is a family friend and he said as long as we have a firm offer of employment, he can get us a mortgage. However, we're not starting the process until we're in the country. He's never mentioned anything about waiting 2 years.

fathermike

We ran into mortgage problems when we returned to the Uk in June last year after 14 years in the USA. I have a job, we had money for a large deposit, I even had a housing allowance from my employer, but we came unstuck because nearly all lenders now have a requirement that you provide the last 2 or 3 years of UK addressed for the underwriters credit check.

We lobbied the bank we have been with for almost 30 years to make an exception as our US credit score was excellent. They could not get the underwriters to budge. So we now live in a house that is provided with my employment and will be buying an investment property at sometime in the future.

We thought we would get a mortgage easily, we were wrong, not being in the UK for at least two continuous years before making a mortgage application seems to be a very big hurdle. Things really have changed on that front since we left in 2001. The only exception was the Halifax, they were just too cautious about how much we could borrow, they would only use my housing allowance as income for the mortgage, not nearly enough to buy a family home here in Birmingham.

So it's not impossible to come over and get straight into buying property, but it is certainly far from straightforward. Be prepared for the possibility of needing to rent for a couple of years, another challenge all of its own!

Bermudashorts

I am puzzled that people are having so much trouble, especially with you having a large deposit which usually smooths the way considerably. Our experience has been very different. We had a mortgage approved in January for a BTL, this was a year after we returned to UK from Australia. That purchase fell through though (nothing to do with finance) and we are now thinking of moving house. We have just had two agreements in principle approved and it was no trouble whatsoever, nobody batted an eyelash over where we had been living. We are now 18 months into our return from Australia.

Previously we bought whilst we were still sitting in Bermuda, that was pre GFC though so a different world back then.

fathermike

Buy To Let mortgages operate under a whole different system for underwriting. Very different from purchasing a primary residence with a mortgage.

Bermudashorts

Indeed BTL is a different matter as it is considered higher risk lending. But in any case, I explained that in January I was approved for a BTL and this week I have been approved for a purchase of what will be my main residence.