HelsW

Hi All!

Happy New Year!

Well, after 8 years this side of the pond we are starting to wonder if a move back home might be right for us in a year or so. I’d love to hear experiences of moving back generally. Specifically as well, does anyone know how it works with our UK credit rating? We both maintained UK bank accounts and hubby has a UK credit card we used when over there, is that enough to keep some kind of credit history even though we have not had a UK address for 8 years? Wondering as we’d like to buy a house if we return and don’t know if that would be possible right away.....

Any advice gratefully received!

Helen

Nutmegger

If you check out the forum index, there is a Moving Back to the U.K. section that might help you.

SanDiegogirl

Such a big subject.

There are lots of threads on this very subject - just take a look in this very forum

tdrinker

How to check your credit score and credit report

All CRAs have a statutory obligation to provide you with a copy of your credit report for free.

You can access the report online ....

https://www.moneyadviceservice.org.u...-credit-report

HelsW

Thanks so much!

durham_lad

If your husband has maintained his UK credit card then that has got to help. When we moved back after 29 years away we rented a house while looking to buy and it only takes a few months of paying rent and utilities to build a decent credit score.

morpeth

The easy step is sign up for the free credit reports from the UK to where you are at to start.

1. Credit Karma, Totally Money, and Clearscore all offer free ready credit reports online updated monthly Each offers a 'soft search' which doesn't appear on your credit report to check eligibility requirements for credit cards or loans- while only a rough guide as each bank or lender has their own criteria, this can be helpful in building a credit file which is normally a key aspect in getting a mortgage..
2,. Electoral Roll : The most important thing is get on the Electoral Roll on your return, though it can take a few months to be reflected on your Credit Report This is an important part of a credit score
3. Cash Plus- The prepaid cash cash debit card has some unique small amount offers for holders of the card which helps build credit. (However they are converting to being a bank in 20201 I am not sure if this will have an effect)...
4.Mobile : If you sign up for a UK mobile service get a monthly arrangement and depending on provider ( after you have looked at your credit score) buying a phone on a credit basis form them, even if just paid over 3 or 6 months, will appear on your credit file. However when applying at a store try to get a salesperson who seems competent to ask whether such an application will appear on the credit report.
5. Credit Card- Using the Credit Report you can check your eligibility, but usually the New Day group ( Marbles, Acqua and Fluid Cards) or Capital One the best. Marbles increases credit limit much faster, sometimes twice a year,
6. Bank Credit Cards usually harder ( avoid Barclays) to get than an overdraft line which appears on better credit reports like Experian While overdraft limes typically like credit cards generated on analysis of credit report and bank account data, two banks told me before applying deal direct with your bank manager as who can on an initial application for overdraft check internally as often the bank has on file what overdraft line they calculate they can offer- and the bank managers told me for an initial application they can help, but not so much unless you are a very good client.
7. Regular Saving- while interest rates pitiful these days, but signing up for Regular Savings account, say for even 25 pounds a month on an account requiring at least 12 months regular payments..Bank Manager told me this adds a few points to your eligibility.
8,. A bit of 'overkill' is get a debit card from organization like Transferwise , or less beneficial Cash Plus- .so expenses the bank may incorrectly factor into your eligibility are not. This happened to a fiend where he had to go into a lot of explanation of why certain expenses where not recurring ones.
9. If you are able to get a mailing address or already have one, getting that on your credit report early ( say by changing address on your existing account), as length of time at an address also a factor, or length of time on previous address. ( On my credit report I found it showed me at an address from 25 years ago).
10. On eligibility, watch out that having a landline a requirement ( some store cards, and I know a few Barclays products) if you do not plan to have a landline.
11. UK Credit Files do not pull on data - even from the same credit reporting company- from North America. I see much more cash transfer or balance transfer offers in the UK with no interest for 6 to 18 months- if you have outstanding US balances for example, sometimes easier to get money transfer from UK card with no interest , then payoff US balance. .

Obviously many factors go into getting approval for a mortgage, but I think ideally one would take a year to build a good credit file. Due to Covid I see developers more desperate to sell ( even though overall news reports show housing prices have gone up) and sometimes have relationships with mortgage brokers than can be easier and faster to deal with for a buyer.

Good luck !.

HelsW

Yes, we’ve both still got UK bank accounts and he’s had the credit card active the entire time. I don’t see how to pull our credit rating without a UK address though, am I missing something?

I would rather not have to rent again but it looks like it might be inevitable 😩

HelsW

WOW, lots of info for when we make it back...thank you!

durham_lad

I think you are going to need to have a UK address. As I said we set up a rental from the USA and on return immediately registered to vote, registered with the NHS etc.

Great info from Morpeth above.

morpeth

The funny thing as I had totally forgotten I had many years before got a M and S card until the credit report showed I had the account opened for 24 years,

Good point about registering at the GP, though there are some interesting quirks about the 3 month habitual residence rules, though I have the impression in the North East a bit more flexible than down south.

durham_lad

Not really heard about the 3 month residency rules. I thought that a UKC returning and being taxed from day 1 was entitled to NHS coverage immediately. I had a GP appointment within days and she looked at my prescription and said that is exactly what she would prescribe for the condition and wrote me a repeat prescription.

morpeth

It is interesting the habitual residence rules. Technically for many benefits and for NHS one needs to be in the UK for three months. On the other hand as a UK citizen you have a right to NHS services-one of reasons when moving from the UK one is supposed to tell your GP. I am unaware it has much to do with paying tax, though that would be an indicator I assume of being a habitual resident. If I recall on the form to sign up with GP the form is supposed to check for this by asking specifically on dates moved back to the UK.I had no issue, but I have heard down South people received notices about this rule if something required a hospital stay or specialist consultations. I really don't understand the details

I know for JSA it is specifically looked at- at one point my son was thinking of returning so I asked at the Council and Job Centre what he would qualify for. The Council said they might make an exception but they much preferred something from the Job Centre confirming he was a habitual resident. The Job Centre was adamant he had to be here 90 days to be considered a habitual resident.

One thing I noticed in the UK, government seems to know everything quickly- it must be a lot harder to go 'off the grid' compared to the USA., plus government departments in the UK seem to use the same database or have instead access to databases of other departments- something that isn't common on average in the USA.

tdrinker

You would have had a credit rating when living in the UK, and will still have one having maintained UK bank accounts and credit cards. Probably a good rating, even if it can (will) be higher once you return and are on the electoral roll. You can be on the electoral roll whilst living overseas, although I don’t know if it would help a credit rating in these circumstances:
https://www.gov.uk/voting-when-abroad

"Voting if you move or live abroad

You can register as an overseas voter if you:

· are a British or eligible Irish citizen

· were registered to vote in the UK within the last 15 years ..."

You may be able to buy a UK home from the US using an expat mortgage, and replace it with a UK mortgage later. To buy a home initially with a UK mortgage, you would need to be UK resident, and have proof of income (normally, a UK job). Speaking to a UK mortgage broker would clarify matters.

Most people - and your situation may be different – would sell their home (and free up equity), move to the UK and into rented accommodation, find a job, search for then buy a house. After moving to the UK, register with a GP, and (further) build a credit rating.

The real issue is whether you want to return to the UK, and the employment opportunities if you do.

durham_lad

I did have to go to hospital a year or so after moving back and the first time I attended I had to bring proof of the right to reside in the UK plus proof that I was a resident. In my case it was British passport plus a utility bill. No question about length of residency but I’m sure it varies a lot between NHS trusts. When my wife attended the same hospital for treatment (different department) the following year she wasn’t asked to bring anything to prove entitlement to use their services.

Benefits such as JSA definitely aren’t available from day 1 regardless of being a taxpayer or not and I certainly agree that the different government departments seem more joined up here than in the USA. I thought that when I used by certificate of Naturalization to get my first US passport that I would never need to show it again, but I had to produce it to apply for Obamacare and recently to apply for Medicare Part A, a US passport isn’t good enough.