Chiclanagir

Thinking of getting a loan to make improvements on our UK house. Have UK bank account and UK credit card and use a UK address. But not on electoral roll. Has anyone managed to get a loan under these circumstances. Happy to have it secured on UK property?

Porth

Where please are you resident? Currently the mortgage market in the UK is difficult and lenders are applying strict rules.

Again not sure if your house is unencumbered and thus free of any charge?

Perhaps a starting point is your bank. However not on the electoral register then you have a strict vetting programme credit wise through Experian and so perhaps the odds are against you.

I am confused but that is not unusual. You seem to be resident in Spain with a UK house that you wish to refurbish? There are all sorts of questions and I believe you would be better off chatting through opportunities either with your bank or through Mortgage advisers. Again please be aware that you house will be at risk if you do not keep to the terms of the lender.

Chiclanagir

No mortgage on the house just need a few thousand to do some work on it. Spoke to my bank several years ago and they didn't want to know BT that was for a personal loan. Since then have built up a credit history just not in electoral roll except as an overseas voter. Just seems crazy if they have a charge on the house what is the risk for them! Just wondered if anyone in a similar position has done it.

rspltd

Try this link:

https://wealth.barclays.com/en_gb/ho...in-the-uk.html

Chiclanagir

Thanks for that.

Porth

There is no risk for them but you are resident in Spain. Not so Easy pickings if things go wrong. There is a huge amount of opportunities in the UK yours brings alleged risk and thus risk is relative to reward.

Porth

Try to think this through the bank might have a number of opportunities.

Their thinking is with you a Spanish resident but a UK citizen as against a UK resident and actively employed in the UK. So they contribute.

Then a family with three children and say 40% deposit and being on the housing ladder. What would you do?

As you are no longer resident either in the property or in the UK you get reduced payments for Council Tax.

I see the banks position. As to the referral to Barclays well they have just dismissed their CEO.

A foot in both places?

Porth

So one presupposes that the house is empty or is rented? If the latter can understand the object but still the argument is why should a Spanish resident but UK person have the opportunity of loans.

We too have a very small portfolio of rental properties in the UK and have just upgraded them but from cash reserves. It matters nothing but Nat West wished us to borrow from them and keep the cash in reserve. Sorry not on

We have banked with Nat West for over 44 years.

Like everything it depends.;

Chiclanagir

I can't see your logic. The bank cannot lose. It's a commercial decision to make money. If we defaulted they take the house. And what dies Council tax have to do with it. The property is rented out. Unfortunately we do not have cash reserves. The object is to move from permanent rent to holiday letting to give us the opportunity of staying there for a few weeks a year. So the Nat West was willing to lend You money. Are you Spanish or UK resident

Porth

I do not think I can add anything more save you have a house which is rented but the property is not charged to anyone. So let us say you have rental income which is payable to a UK bank as in your account?

Thus why not simply build up that income and use it to renovate the property.

Or does that income become redirected elsewhere.

I say this both as a lawyer and a one time Corporate Lender for a bank.

Take the rental income and use the cost incurred from 'putting it right' against one's tax liability wherever that may rest.

Why borrow from a bank when you have rental income. You say just a few thousand pounds.

I am not trying to be difficult but equally did I say anything as to Council Tax. CT falls to the tenant not you.

Porth

I apologize and openly. Thus sorry. But if you rent the house to someone under an Assured short-hold tenancy the responsibility for CT is theirs not yours. However it the house is unoccupied then you as the owner do indeed obtain certain reductions for council tax over a limited period.

Of course the house is not subject to a legal charge from either a bank or a building society. It it was then one has to obtain the approval of the lender to rent! Moreover the receiver of the income as in rental if paid to an agent has to deduct the tax or be faced with a agreement from the revenue that the income is paid gross.

That is an important concept. So one presumes your income is paid gross for you have been in Spain for such a long time.