Britfrombristol

I was just wondering whether any of you have had any experience in funding the purchase of your US home with a UK based lender.

Given the rise in house prices in the UK and the fact that my American wife and I are thinking of moving to the US next year (I have a Green Card by way of marriage to a USC), my wife and I have been thinking about buying now whilst we are still living in England as my Sterling related income would purchase us a very nice house in northern Florida. I have an appointment with my bank this week, but I was just wondering whether anyone here has used their UK income to fund the purchase prior to moving over.

Thank you in advance.

Britfrombristol

Patrick

Just out of interest how will you pay the british bank when your in the USA?

If you buy a house with sterling now you will get a fantastic amount of dollars for your pound but when you start paying off your UK debt from dollars you will paying $1.80 for every pound plus the cost of transferring the money. It doesn't seem too clever too me that in a year you will earn North Florida wages and have to pay a UK bank in pounds.

The rate of interest in the US at the moment is very small, you can get a 30 year fixed rate mortgage for 5%, why would you pay UK mortgage rates (which I suspect are higher)

If you don't pay your mortgage how will the UK bank get its money back, it can't reposess a property abroad, I doubt if a UK bank will give you money, especially if you already have a green card and are planning to leave the country (and thus have no colleteral in the UK, like your UK house).

I really don't think you have thought this through very well, go away, cancel your meeting with the bank, do some research, then decide what you can and can't do before doing it. I suspect you will have to get your mortgage with an american mortgage company.

Patrick

CalgaryAMC

There are US financial firms that will give you a mortgage based on an overseas rate. A friend of mine has as US issued mortgage based on UK interest rates. The name of the company evades me now, although I'm sure it was one of the big firms. Do an internet search.

There are also British based brokers of US mortgages that deal only with Florida properties - mainly properties bought for the vacation rental market. One I am familiar with is Pilgrim Direct Finance. (Google it) They are licensed Florida mortgage brokers but based in the UK - Rutland actually - and serve Brits who want to buy property property in Florida.

I disagree with a lot of what Patrick says - having bought and sold property in Florida before whilst being based in the UK - but what I do agree on is that it would probably be best to deal with a US mortgage firm.

Patrick

Just out of interest, did you buy Florida property in the UK, then emmigrate to Florida and then have to pay back the mortgage from a US wage? Thats the thing I think is totally dumb, not that they want to buy a house in Florida, I know there are companies that finance holiday/second/rental homes in Florida but these companies usually use your UK house as the collateral (if you don't pay they repossess your UK house and get the money from back from that) these people are not buying it as a holiday/second/rental home to move there in a year. Slightly different scenerio, again I don't think you have thought this through very well. And don't even get me started on lying to the bank. The only way around it, that I see is, is if you are 100% paying off your loan before you move to Florida with proceeds from your UK house sale.

Patrick

suzieque

Hi,
Just wondering where in North Florida you were looking as I live in North West Florida, since last Oct and it is lovely....
If near by and you need a realator let me know.....
Suzie

NC Penguin

The important distinction between the OP's situation and your comments is that the OP plans to reside in the US year round since he has a Green Card.

There's a huge difference, for lenders anyway, between mortgage owners of US holiday property who live in the US part of the year against Brits with US permanent resident status who live in the US on a permanent basis.

CalgaryAMC

Yes, you are absolutely right.

Heather142

We used our UK mortgage to get an advance loan, to purchase our house in Tucson, some years back now. It was easy and the bank did not ask any questions at all regarding the US property.

We are moving out to Tucson this summer (yes, I know how hot it gets down there) and are putting the UK property on the market this month. We should still make a tidy amount on the UK property.

Good luck with the bank interview.

Heather

Patrick

So why did you disagree with me when that was the gist of what I was saying, idiot!

Patrick

CalgaryAMC

When one has the grace to acknowledge another as being right, one doesn't expect the other to turn around and call him an idiot.

CalgaryAMC

Because so much of what you said was wrong. For example, your perception that transferring money from country A to country B is difficult. It is not. Similarly your perception that the OP would only receive US income was presumptuous; but that is poverty talking, so it can be forgiven.

ScousePete

You obviously do not have any experience in this matter, only an opinion.

When someone does come along with something more than an opinion (ie experience) you resort to name calling. How old are you? Twelve?