Hi,

Not keen to use the expatriate mortgage brokers on permanent return ( have found them expensive ) BUT does anyone know if it's difficult to get a Uk mortgage when you've been away for 2 years?
We've kept open our Uk credit cards and bank account and have a house deposit in an account there.
Anyone know what they want in terms of paperwork etc????

*pearly*

Hi PB

I dont know the answer to this but I would be interested to know. We have also been here 2 years and now are desperatly trying to sell our house to get home but so far no luck.. I was wondering if there was any way you can use your home in Aus and class it as an asset in the Uk for a mortgade. We do have a mortgage here but also around 230 000 pounds in equity.

thanks

nicola

Hi pearl, was on the phone to a friend last week, a friend of hers is an independent financial adviser, he said last year he could get folks a choice of about 2,000 mortgages, now hes lucky to get a choice of 200, he was saying its getting more and more difficult with the lending situation just now, however i think if you've got a decent deposit and a job, they will probably bite your hand off.

I can cope with the choice of about 200 different mortgages. Hoping to secure work before we leave here so I'm pushing to have a phone interview. I've got 2 contacts with York NHS so I've been maintaining contact with them and there's talk of opening up new jobs in the role I'm in. So, it's promising.
I just wondered if you'd still need the past 3 months wage slips as well as your UK job offer/contract.
This will be tricky for me as I only work occasionally via the nursing agency.I suppose the fact we have a deposit and HOPEFULLY job offers then that will be enough??? Hope so anyway. Would like to buy asap after we arrive as planning on renting a furnished place for the first 3 months.

*pearly*

You need permanent employment contracts to even be considered for a mortgage upon arrival now, despite what the brokers tell you. Even while I was arranging my move home, the lending criteria tightened up, and we experienced an offer (conditional upon employment contract) being withdrawn (RBS). We could not show UK employment within the last twelve months, as we have lived and worked in Canada and the Head Office now demanded this. Most lenders were asking for six months steady UK employment before they would look at us. One required a letter showing that any probationary period was successfully passed.

Grrroooaaannnnn.
That sounds tough.
I guess a lot depends on individual circumstances.

*pearly*

Re using the equity in your property in Aus to secure a home loan in UK - can't be done, mortgages are only legally enforceable in the country where the security is located.

You could borrow some money against your house in Australia maybe to put a deposit down on a house in the UK, and take a chance on a quick sale in Aus to payout the loan, but with Australian mortgage rates nudging 9.5% not sure I would recommend it.

The fact that you owned a house in Aus and would have bank statements to prove that you kept up repayments wouldn't hurt, someone out there will loan you the money, don't despair, banks still have to make money!

Just out of curiosity, why the massive hurry to buy in a dropping market? Why not rent for 12 months, see what is happening in real estate price wise, settle into your job, have passed probation, take your time to find something good, with the right loan rather than having to pay a premium.

Personally I'm keen to get settled. Haven't been able to buy here in Australia because of escalating house prices and interest rates. I just want my own place after 3 years without.
As the Uk market is dropping there's enough room for negotiation, so rather than wait for them to reach an all time slump, I'm happy to go for it when I can and bargain them down.
That's just my own reasons for wanting to buy quickly. I should say though that we're not due to return for another 6 months so no real rush just yet.

*pearly*

Hi

You will need a permanent contract I'm afraid, you can only use temporary contracts if you have one to two years history with them. Your loan to value and credit score will depend how much information the lender will ask for.

Good Luck

Danny

Holy poo !! Didn't realise ...

I spoke with a friend in the UK a couple of days ago and she is in the process of selling her house at the mo and was saying that the problem isnt that people wont buy it is that they are having problems getting a mortgage or even affording a mortgage.

sorry

How about self-certification mortgages-are they still available? If so that would be an option tho' rates will be a bit higher.

One option would be to find a house you want to buy (remember if it's on the market during a slump, perhaps the seller is slightly 'distressed' and flexible) and make the agent an offer to rent the property with a view to buying. Note, I say with a view, not with any kind of legal obligation or set price, but with an option or first refusal. This will in essence give you the feeling of stability and of having your own place, but with a wait and see factor also. You will be able to build up your credit rating too for your future mortgage.

Heres what we did.

I had a permanent job to come back to (in the NHS), my husband did not. My husband is a carpenter/joiner and managed to get work in a Caravan building factory a week after the christmas break (cos they were desparately building caravans and selling them due to the floods). We found a house we liked that was for sale and there was no one living in it at the time. It had been on the market for around seven months. We viewed it and asked the estate agents if they would ask the owners if they would consider renting it to us with a view to buy. They agreed, so we moved in after two weeks of being back in the UK. We used a mortgage broker who found us a mortgage and they rang my husbands work (even though he was on probation for three months) and my work place - I think they allowed it cos of my permanent job contract. Three months after moving in, the house was ours. Since then my husband and I have changed to much better jobs, which are local (pleased to day).

I think we just got lucky and got back at the right time. There is a massive credit crunch happening here now and its getting harder and harder to get a mortgage and they are tightening up. We had to put down a ten percent deposit.

Things have changed since we got back, fuel is on the increase - I had to leave my fist job on arrival due to the cost of travelling to work which was in excess of one hundred pounds a week, and the cost of food is on the rise. However, I so love being home and know I have made the right decision to return. Good luck to all of you wanting a mortgage and returning back..... things can work out for you if you are prepared to give it a go and my fav saying is 'nothing ventured nothing gained'

A 10% deposit is almost a must these days unfortunately, there are still 95% ltv mortgages available however they all charge higher lending fees (applicable after 90%), and with arrangement fee's so high it kinda means that your deposit gets wiped out.

Income multipliers have also been reduced, where you used to get up to 5 times income or 4 times joint many lenders will only offer 2.75 times joint, or 3times highest income + 1 times lowest.

Another option for affordability may be shared ownership if there are any schemes available where you are going.


Good Luck