ezzie

Fortunately kept a UK Building Society account and whilst over there a few weeks ago, attempted to open new account with same Bld Soc. and (apart from unbelievably useless level of service) was knocked back from internet banking account due to not having any credit rating.

We're looking at going back permanantly to the UK and are terrified that we'd get back there and have no way of getting a rental/mortgage/insurance/utilities etc because we lack any 'trail' of credit. Apparently, Visa or other credit cards don't 'talk' to other countries to let them know you have 25 years of unblemished ability to repay debt!

Has anyone experience in this area? Are there any truly international banks which we could use to circumvent being left homeless bums in the UK?

jmh

You should be able to open a bank account via the bank you use in Oz. Try to arrange for a debit card and cheque book etc before you leave, not when you get there. You should be able to get utilities ok once you have an address. Once you have a utility bill you can use it to get other things. As far as I know rental agents just need references so get some before you leave. You may be able to get a mortgage with a high deposit, or a mortgage with high fees. Might be worth renting until you get your credit record. A really important factor in getting a credit record is being on the electoral role, so get registered as soon as you arrive.

ezzie

Ta for that JMH, I heard somewhere that HSBC do international accounts/credit cards. But then I vaguely remember people saying that the reality of ease of transfer didn't quite add up in reality.

JMH...have I got the right person, aren't you a teacher?

jmh

Yeah I am. How did you know that?

ezzie

The beagle you passed in the street yesterday is actually an informant....actually, I think you mentioned it in a previous post, I'm pretty sure you were in Brum, maybe actually Sutton (?) (my old stomping ground)

jmh

Yeah I teach in a school in Surrey. I think I mentioned it in one of the snow posts - I am celebrating having another snow day tomorrow!!!

cricket1again

You will not get a credit rating instantly in the UK. You have to start again and build one. If you have a job and can provide 3 months wage slips, you may get a mortgage but you will still need a hefty deposit.
We're going back to the UK soon and have just gone through all of this. That's why we're taking enough funds to buy a car, supplement our income, and to pay up front for rent and bond. No one will take you at face value. Like you, I have an unblemished credit rating but it's broken by being out of the country for 5 years.
It's fair, I could have been and done anything in that time, robbed a bank, done some forged deals, who knows? There is no paper trail so they need to see you are credit worthy before you'll get a penny.

If you open an HSBC account in Australia, you can at the same time, open a UK HSBC account through their international business banking centre. It's just a form that you fill in. it's not complicated or difficult.
Then when the time comes, there is a $20 charge to transfer funds between banks.
Again, we've just done all this last week in preparation.

Once you've got your UK account open, you need to keep it active by transferring regular amounts of money. After a few months, you should be able to apply for a credit card.
You need to create a paper trail that goes back to a UK based address to start your credit rating again. I think it takes 2 years to get a full credit rating.

ezzie

Thanks...I'll drop in on HSBC and see what they can offer.

If these bloody banks actually spoke to each other, we'd not have to jump through all these hoops though!

ninakula

I don't know if this helps at all but I have been out of the UK for 6 years but have always maintained my UK bank accounts including my business account. We still use our UK credit cards (although the bills our sent to our foreign address) We have also done our UK tax returns, paid NI contributions etc.,

Two years ago we went back on the electoral register to have a vote by proxy which was registered at my mothers UK address - but guess what...
It still looks like we don't have a credit rating because we do not have a UK address - and as we are trying to rent somewhere it seems impossible without having to pay 3 months upfront plus the deposit.

Apart from Experian which I cannot check - does anyone know how you would find out your credit rating in the UK without a UK address because it seems ridiculous not to have one if you have continued to leave the credit trail etc.

cricket1again

You can't have a credit rating if you're not there.

jmh

Do you have a family member that you can use as a home address? Not sure it will work, but just a thought. Post codes have become quite important for lots of things. You can't even buy a tv without one!

cricket1again

The threat of terrorism has changed all the normal options. If people could live outside the UK but use a UK address to maintain a credit rating or pretend they were living in the UK, it would make it much easier for criminals to move money around.
It's not even got anything to do with credit anymore. It's about identity and proving it. These days, you've got to prove who you are and where you live as well as how long you've lived there for.
I think it's good because it's a protective system but I understand it's frustrating. We just have to work with it.

ezzie

Never even thought of that. It's still a bugger though!

sans

We was only out of the Uk for 14 mths and was still paying a morgage for 4 of those 14mths and still we was getting refused by morgage companies, because we had no resent credit history.

In the end our morgage advisor, put our previous Uk address on the application and it was accepted

Fleaflyfloflum

Thankfully, when I was there the last 2 times, I made sure I was put on the electoral register at my daughters address, plus I managed to open a Lloyds bank account. I also got a laptop and dongle deal at Carphone Warehouse on a monthly plan. On top of that Next catalogue also allowed me to have a credit account ( no idea why!!) So i decided just to buy a couple of small items, (duvet and kettle ready for when we get back)
This means that even though I had to return to Aus temporarily, my credit rating is building nicely.

I would advise anyone going back for holidays or reccies to try this as a way of kickstarting a history