Tom Sawyer

Just wondering if anyone has managed to get a mortgage quite soon after their return to the UK, and who with? Been back about 7 weeks now and was planning to get back into the housing market quite quickly as did not want have to go into rental and move again after 6-12 months. So far, having been through John Charcoll mortgage brokers, they have not managed to find a bank or building society willing to lend to us. Major issues seem to be lack of residency period and when I start my job next week I'm on a standard 6 month probation. My salary is good, looking to borrow about 50-60% of house value, so although I get their reluctance to lend to us, I feel I'm putting in a fair amount of equity to cover the value and also have funds in reserve to cover any potential job loss after probation. Wife is also looking for work as a nurse, so hopefully should have something soon as well. Need to get something sorted as have kids that we need to get into school as well when we know where will be - currently staying with family.

Tirytory

Is renting the worst idea in the world? Does give you a chance to really find what you want rather than settling. The banks are tough in the UK now, mortgages even with pre-approval take quite a few months to satisfy themselves of people's ability to pay. Are you able to stay with relatives for that long?

dunroving

Did you maintain a bank account while you were away? If you haven't asked your own bank, it might be worth a try. Also, I don't know if you have a local building society or credit union but they might be worth a try too.

I got a mortgage within 6 months of returning, from my own bank, but that was 7 years ago. Things have changed since then.

Tom Sawyer

Thanks for the replies - it is just the aggro of renting and moving again in 6-12 months, and paying for some of the furniture to be in storage. My job which I start next week also involves a fair amount of overseas travel, so time in the future for house hunting could be a bit tight. Also, if we can't find a house to buy in the rental area, it would mean moving the kids school again potentially.
Although we did maintain a bank account whilst we were overseas, they have advised they will not give us a mortgage based on our current situation - thats HSBC group and we even banked with them overseas. Need to have completed probation and have proof of actual income.
On the plus side, wife has now found a job and starts in November.

cyrian

It depends where you are moving to.
If you are moving to London for example, getting into the school of your choice is not easy. This will apply to top-quality schools in other areas.
Some people choose to rent within the catchment area of their chosen school to gain entry to that school then buy their chosen property afterwards.
It can be cheaper in the long run.
I know of a school in London where the catchment area radius is about 250 yards!

Tirytory

If it's any consolation, we're in the same position, although we need to find a rental in a specific catchement to get my son/daughter back into the old school, and then buy in that catchement. Yes, it's a pain, as we will also have to move twice (or four times in the space of 18months) but I think it's just what we have to do, and since I have no intention of moving again, I want to get this house move RIGHT!

I'm also due in March, so will potentially be house hunting/moving with a young baby. Oh the joys. Still I see it as worth it to be back where I belong

Sally Redux

I am going to view a couple of houses at the weekend but I foresee a problem with getting a mortgage. I have explained our position to the agent and their broker is supposed to be contacting me. Will report back if I find out anything useful.

cyrian

If you are in a buoyant area, then offers may only be accepted if the finance is already in place. A broker may be able to obtain mortgages because they earn their income by going just that and the estate agent will probably make something off that as well.
Good luck

rebs

Good luck with that, Sally As an aside, it's been great seeing your posts here and there about being home.

The broker that is attached/recommended by the estate agent (if that's what you mean by 'agent') might not be in the best position to help you.

Check out the MSE guide - in particular the specific questions to ask a broker

Cheap Mortgage Finding - get the best deal - Money Saving Expert

Sally Redux

Thanks rebs

I will do a proper update when I'm out of the honeymoon phase!

Yes the estate agent. I will check out that info. I was sceptical about brokers supplied in that way myself, but we did use one last time we moved in the UK.

Rosie Lee

We recently spoke to an Independant broker, who told us we needed to be in the UK for a year, or minimum 6 months. And that was with a 50% deposit!

Tirytory

Really you've only been away 18months. We're fortunate in that since hubby took a sabbatical he has effectively been paid a salary for the last year. He hasn't received it as it has been paying for a locum, don't think there will be any spare left over! But you never know the banks might take a dim view of it!

SUPERCAD

We have just been through a situation were the broker gave us a letter stating thay could lend us money but when it came down to it they couldnot seal the deal it was very frustrating and embrassing for us. I am a bit different cause i work outside the UK but they new all of this.
i have just been advised that a minimum of 3 months of work history (uk based) is required before main stream lenders will look at it.
you have to wonder were the incentive to buy is the goverment says it wants people to buy yet people who have big deposits with big jobs are turned away, their are 3 on this thread alone just dosnt make sence.
Im with Tom i hate renting paying other peoples mortgage dosnt sit right

Ozzidoc

Rent where you want to live and invest (buy) where it makes financial (investment) sense.

cyrian

Have a look at this article: New mortgage rules: the questions you will be asked - Telegraph

In addition, you could Google "new UK mortgage rules 2014" which brings up lots of useful information.
Basically, you need to prove to the lender that you have enough income to cover your normal outgoings - and prove it - as well as servicing the mortgage.
They also stress-test the potential mortgage for affordability against an interest rate of between 6% and 7%.