jgp32
New member
Posts: 42
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« on: August 05, 2009, 05:13:03 AM » |
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My husband and I have been living in the UK for three years and think that we are ready to consider buying a home here. My husband's probationary period at his university has been completed, and with (slightly) falling house prices, we're thinking that now might be a good time to buy. We know absolutely nothing, however, about mortgage lending in the UK.
I know that the amount you can borrow is calculated differently than in the states--it seems to be quite a bit lower--and down payments are typically substantial. Are there any regulations that would affect us, as two non-Brits (we're both American) looking to buy here? I don't know if anyone might know the answer to this question, either, but I'm currently on maternity leave from my job--would this affect how a lender would calculate my salary for lending purposes?
Any advice or information that anyone could offer would be much-appreciated!
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expatinuk
Has spent over 1000 pounds but now holds a Brit passport!
Distinguished Senior Member
Posts: 6,564
From SC living in UK
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« Reply #1 on: August 05, 2009, 06:24:05 AM » |
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Get thee to an INDEPENDANT Financial Advisor (IFA). S/He can explain all the different types of mortages etc that are currently on offer. Up until the banking crisis you were able to get a 110% mortgage... but now I believe that most mortgage companies require at least a 10% downpayment.
Ask people at the university to recommend an IFA... and then make some appointments and work with the one who you like.
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Expatinuk seems to be a Soviet Satellite in stationary orbit over the UK
It is what it is.
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scotia
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« Reply #2 on: August 05, 2009, 07:57:46 AM » |
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Get thee to an INDEPENDANT Financial Advisor (IFA). S/He can explain all the different types of mortages etc that are currently on offer. Up until the banking crisis you were able to get a 110% mortgage... but now I believe that most mortgage companies require at least a 10% downpayment.
Ask people at the university to recommend an IFA... and then make some appointments and work with the one who you like.
Unless things have changed recently, just be aware that not all IFAs are equal. Some charge you for their services - and are therefore usually truly independent - and some do not charge you but get a commission from whichever mortgage lender you end up going with; they may therefore try to push you towards a mortgage provider that pays good (not necessarily the best) commission. Last time I took out a mortgage I got a good deal from one of the latter (the mortgage he recommended really was a good deal for me). I did a lot homework before and after I spoke to the IFA, which I think helped in making my expectations and requirements clear. For example, his initial suggestions would have resulted in a redemption penalty had I given up the mortgage before the tie-in period (which I did) so it is worth understanding all the potential mortgage types. I trawled various financial websites (including Motley Fool and the BBC) to get initial information. |
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qrypt
Qryptacular & not really a Member-Moderator
Distinguished Senior Member
Posts: 5,212
the great vampire squid round the face of humanity
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« Reply #3 on: August 05, 2009, 08:06:22 AM » |
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There's no quick solution to this. It's a very complicated business and there's no substitute for knowing what you're doing. The good news is that there's no real implication deriving from the fact of not being a citizen, as best I can tell -- fewer lenders might offer you a loan, but once they decide to do it the terms ought to be the same as for citizens.
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"I'm tired of being your love slave!"
"Does that mean I'm not going to get my coffee?"
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expatinuk
Has spent over 1000 pounds but now holds a Brit passport!
Distinguished Senior Member
Posts: 6,564
From SC living in UK
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« Reply #4 on: August 05, 2009, 10:08:38 AM » |
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There's no quick solution to this. It's a very complicated business and there's no substitute for knowing what you're doing. The good news is that there's no real implication deriving from the fact of not being a citizen, as best I can tell -- fewer lenders might offer you a loan, but once they decide to do it the terms ought to be the same as for citizens.
It's been a tad more difficult this time around because I'm not on the electoral role... just more paperwork to show WHY I'm not on the electoral role. But the fact that I'm not does have a negative impact on my credit rating. |
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Expatinuk seems to be a Soviet Satellite in stationary orbit over the UK
It is what it is.
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babbinacara
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« Reply #5 on: August 05, 2009, 01:37:07 PM » |
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Do be aware that some banks won't touch non-UK/EU citizens, even if you have miles (kilometers!) of paperwork showing your and SO's appointment to retirement age, your indefinite leave to remain, 3 years of pay slips and bank statements showing steady income, whatever. I wasn't yet a UK citizen when I bought and that was the biggest waste of time and source of frustration.
Hint: you will not see this problem addressed on any bank pamphlets or websites. You need to go to the bank and hear it directly from their skinny lips. Make this the first question you ask; if you make an appointment somewhere, don't let them start selling you a load of BS about how fabulous their mortgage is without learning up front whether you are, in fact, eligible for their fabulous "generous" terms.
Other than that, just do your research and shop around.
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britmom
I'm a slightly less sleep deprived, but still cranky
Senior member
Posts: 725
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« Reply #6 on: August 06, 2009, 03:37:40 AM » |
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I was on maternity leave when we bought our current house (although we already had a mortgage-this was our 2nd property). The lender wasn't too worried about it, and just wanted a signed letter from myself assuring them that I would return to work. I think I had about 4 months of leave left at the time we applied for the mortgage. Things might have changed in the meantime (this was Nov 2007), but I don't think it will be a big deal for them. One thing to keep in mind is that they may well take into account the cost of childcare when calculating the amount you're allowed to borrow. In the letter mentioned above, I had to state the cost of childcare when I returned to work. I told them my parents would be caring for my daughter, which is (technically) true. (They came to live with us for 5 months to care for her, then we used daycare.) I would second the advice to get a good IFA. We used one for both of our mortgages. I found ours by asking colleagues at work for recommendations
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jgp32
New member
Posts: 42
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« Reply #7 on: August 08, 2009, 11:54:57 AM » |
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Thanks for the advice, everyone. It sounds like our first step should be to find an IFA...my husband has asked around, though, and no one in his department seems to have used one (although virtually all of his colleagues own their homes). Does anyone happen to have a recommendation for someone in the London area? Or is there a professional organization whose website I might check?
Thanks very much for the info; it's all helpful!
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