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Old 11.07.2019, 10:50
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Re: Buying in England - mortgage providers

Theres a few out there that I found. Skiptons, L&M, The Marsden. Saffron I found ok.

I looked at buy to let, which as a first time buyer in the UK, an expat, and a buy to let... really doesnt put you in an ideal position.

The property needs a minimum value (i.e 125K, 130k). Then the lender has a minimum loan value (ie 100k). You would need to put down a minimum of 25%, they lend you a minimum of a 75%. And if its a buy to let, you would need to justify earning 125% of your repayments from the rent. Which is impossible if you have a 75:25 loan

In rough numbers you may find for a 125k property, if you fronted 25k the bank would lend 100k.

But its pricey. I was getting quoted around 5.5-6% interest fixed for 5 years or so. Given base rates are at near zero, to have a quote so high, if interest rates go up, this starts making a big difference on your repayments.

By my calculations a repayment mortgage would be about 100-150 more a month than my rental income would be. Which is manageable, just, but if base rates go up by 1% or more, personally I would find myself in a bit of trouble. The risk is too high.

You can get around this by having a much larger deposit, around 50%

When you talk of costs, you also need to buy the expat mortgage, which is a thousand or two. Then all the surrounding costs. Property surveys and flights home to view, legal fees etc

By contrast, France dont have buy to let mortgages, Flats dont have lease holds, they are owned out right, they dont have expat mortgages. Theres no minimum property value or loan value. The only condition is you pay 10% plus all the surrounding fees, which usually amounts t0 20-25%. So the system is much more reasonable. Interest rates are 1.5% fixed for the term of the mortgage, 20 years
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