OriginalSunshine

Hi folks,

so we've seen a gorgeous house in the UK, that is in a location we want, within our price range.

We have saved up enough for a 25% deposit, would prefer an interest only mortgage where we can payoff lump sums off the capital at irregular times (end of year bonuses etc).

But.... we have no idea on how to go about organising viewing, surveying, purchasing, when based out here. Nor do we know which banks would help us organise a mortgage (except HSBC who we currently bank with).

Has anyone bought a house in the UK whilst out here? If yes, can you let me know what you did, how you did it, etc, pitfalls to watch out for etc?

thanks in advance, OS

Ditzy

Meow, or anyone else
It's been a long time since I had property in the UK but am now considering buying a small flat.
Can someone please help with advice on what deposit is required, and if a mortgage is possible for non residents. do you organise the mortgage from a bank here, or there? how easy/difficult is it?
thanks!

al dente

We went through a mortgage broker and our mortgage is issued out of Hong Kong, bizarrely. We needed 30% down payment and got a BtL mortgage that we have to pay in 3 monthly installments. Last time we bought was 20 months ago.

Ditzy

thanks al Dente.

What's the advantage of a BTL mortgage, and do you actually have to prove you have a tenant in it? thanks,

ctfc

It's become very difficult in the UK, you'll need to find specialist mortgage providers like the Hong Kong based one mentioned above.

Interest only mortgages are now as rare as hen's teeth in the UK and we were told by several banks that they do recognise income unless it is taxed in the UK which rather buggers it up.

Good luck!

(Meanwhile the government is giving the banks free money by keeping base rates low whilst banks rip off consumers with rates far above - unbelievably scandalous)

flares

congrats...that end of terrace in Burnley?

The Dean

They can afford the whole of Burnley.............

OriginalSunshine

nowt wrong with Burnley. I've family that live there. Countryside is gorgeous.

al dente

We had to have a BtL because we don't live in the UK and don't want any residency in the UK either.

BtL are charged at a more expensive rate than standard mortgages.

weasel decentral

If you have a normal mortgage you shouldn't have a tenant, the house should be considered your residence. Buy to let rates are higher rates than the residential rates.

To the OP, why interest only? I would have thought a standard variable rate mortgage that you pay every month and then can add lump sum payments would be much better in reducing cost of borrowing over the loan duration.

OriginalSunshine

yes, but on a month by month basis, 900 quid per month is easier than 1800 quid per month. I don't get paid in sterling, so I send over cash in lump sums every 3-4 months. it works for us. we paid our 30 year mortgage (on a flat in Europe when we lived there) off in 10 years by doing it this way.

weasel decentral

Sure it is easier for cash-flow to do it that way but I assume you wind up paying more when you do the sums on it. As you pay the interest on a capital amount that only reduces a couple of times per year rather than every month.

Perhaps it's negligible enough over a short period, I will have to get some spreadsheet whizz to figure it out.

al dente

Our mortgage is paid every three months and we don't have interest only.

Meow

It is perfectly possible for someone who is UK non-resident to buy a property in the UK. You can also buy in numerous other places in the world and get a mortgage. You just need to deal with a broker who has the right contacts, not some school leaver in a building society.

In most cases you will need a deposit of around 25% and your overseas income is taken into consideration, as well as rental income assuming the property is to be let.

As I have posted many times, I you want a referral to a suitable broker contact me.

commander

Yea we had very similar for our BTL in UK. Mortgage is run out of HK and we pay quarterly. Had to put down a sizeable deposit IIRC.