Muswell Hill

I spoke with a mate of mine who earns good money GBP50K+ a year and he is devaststed as he was turned down for a mortgage because he didn't have a 20% deposit of 50 grand to put down. This got me thinking....I would one day like to move back to the UK with the wife and kids, but how in hell could I buy a house?

Any comments, experiences?

peacelover

I think you would struggle greatly unless you were really wealthy.

BigDavyG

Yep - its a bit of a bollocks and I certainly can't afford to move back right now.

Having said that I have no idea who your mate went to for his mortgage but given that factors of *6 and *7 of salary are common he shouldn't have too many problems.
Plus if all else fails he can self-cert and get his mortgage that way.

explorerman

I thought the UK was big on 100% mortgages?? It was when I left 11 years ago. Is the UK a big cash on hand place now?? I think I have got waaaaaay too used to using credit. I remember watching a UK car show, Auto Trader I think, and most people were paying cash for their motor. It seemed that auto financing was looked down upon.

And as to the OP, no way could I afford to move back to the UK. I don't think I could even find a job in my field that would pay even close to what I make now.

Roy

Bob

Not these days, they want a fat deposit because of the sums being mortgaged...and car finance...they love it, because that's how they make the money, not on selling the cars these days.

Best bet would be to rent a gaff and save up....but that's true of many places ain't it...doesn't make it any easier though.

BritGuyTN

I could move back tomorrow and be much better off than when I left

My networth has quadrupled since moving here less than 4 years ago. I expect it to increase another 50% in the next 18 months

This has been partly because I have worked 2.5 jobs but also because the USA offers greater opportunities and better taxation (in TN) if you work your ass off

I have found that with some cash you can make money in the USA, I found this more difficult in the UK...

I would go straight back to doing what i was doing when i left the Uk with the same company but would be able to bring enough cash to buy a nice house with a small or no mortgage payment...

gardnma

Its about the only option. But at least its safe.......

TouristTrap

I watched that ali interview with the fed dude on youtube and nearly died laughing when I googled guff....not the same thing is it?

vegas

Yes But my lifestyle would have to be curtailed a lot. We could afford the basics such as a house and car. But luxuries such as food, Clothing and petrol I don't think so.

Bob

just a bit off, yeah

Pony

Personally I would never want to move back to the UK.
Maybe your friend didn't explain the full details of his rejection.
I have a friend who builds homes in the UK, his buyers still get 100% mortgages.

A quick google showed First time buyer mortgages (help with legal fees, up to 100% of the value of your home, and other special features)
:
http://www.ybs.co.uk/mortgages/choos...irst_time1.jsp

Muswell Hill

The only thing for him is that he really can't afford a 100% mortgage. He was offered one, but when his other expenses (car, clothes, food, childcare etc) were taken into consideration, only a x5 mortgage would be feasable. This would take his payments for a 3 bed semi in Oxford to almost 2000 quid a month. Oxford is the 2nd most expensive place after London so i'm told.

I'm sure he could buy a house under those circumstances, but he would be broke for any of the other things in life, like a take away once a week, stella instead of sainsburys beer etc etc.

I think it stinks you now can't buy a home unless you a really well off....

PS thanks for link..

Bob

yeah, Oxford is really expensive, especially if you want to live anywhere nice....even Cowley and Headington aren't cheap areas and you can forget about Summertown, Jericho, Wolvercote, Marston.

Garsington and Bottley are affordable, but then again, bit shite for location.

Tbag

Have been looking at this recently and right now we would need at least two years to plan and sell property here etc.... to make it a realistic possibility.
After being away 15 years so much has changed and we are learning how things
work all over again.

Englishmum

Yes - we could move back (I wish we could leave here tomorrow but I think we will go back in about 5 or 6 years, might as well get citizenship as it looks like our son may want to stay here for good - he's 18). Our daughter is a student in west London.

We still have our house in Essex (London commuter village) which we rent out as we were only supposed to go away on an expat posting for 12-18 months....we still haven't gone home after 12 years LOL! We charge the tenants a lot less than the prevailing market rate so we don't get a constant turnover and it covers the mortgage anyway, which will be paid off in about 5 or 6 years, as opposed to another 24 years to go on our house in New Jersey (when my husband should be in his retirement years LOL!). We won't be living in the States then if I have anything to do with it....ideally would like a small place in England and maybe a small place near the Med (Florida is too risky due to all those hurricanes and high insurance costs)....

I bought my own house on my own aged 22 in central England, as did some of my other girlie friends. At that time there would often be a wait to get a mortgage as the building societies would limit funds to how much they would lend each month...I had to wait six weeks to be granted my first mortgage. Also there were limits on how much you could borrow, I think it was twice or 21/2 times the first salary or 3 times joint income.

Now my daughter is 22 and no way (if she was working) be able to pay for that same house on one salary. Every Tom, Dick and Harry decided to invest in property when the govt. allowed people to get mortgages on property purely to 'buy to let'...I think all those TV property programmes had a lot of influence as everyone wanted to get rich quick.

I know that more people are divorced or want to live the single life and there has been mass immigration into the UK, but the overpriced property market in the UK is also due to too many people having been allowed to take out a mortgage and over-stretching themselves.