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-   -   Buying in England - mortgage providers (https://www.englishforum.ch/finance-banking-taxation/292966-buying-england-mortgage-providers.html)

wizwozz 10.07.2019 19:53

Buying in England - mortgage providers
 
Hello all!

I will start a new job soon and I am planning to buy a small holiday flat in the south of England, I might even rent it out as a holiday let Iím not sure. Have any of you got an international mortgage? Can anyone advise me on how to do this? Iíve got a good estate agent who would manage it for me, I just need a provider.

Also I would like to set it up in my childrenís names as a trust fund property.

The flat would probably cost around 180.000.

How much deposit would I need?

Any advice would be greatly appreciated.

Have a good evening.

Guest 10.07.2019 20:31

Re: Buying in England - mortgage providers
 
I would start the new job first, you priorities may easily change.....;)

Jim2007 10.07.2019 21:09

Re: Buying in England - mortgage providers
 
You probably need to put a lot of time into this...

Mortgage products are targeted at residents and for the purchase of their home, which is a very different risk profile to a non resident buying a holiday home with the intention of rental income. So exceptions will be needed.

You canít pledge an asset you donít own against a loan, so unless you have some other asset instead, I doubt any bank will agree to allow you to put the house into a trust.

maninwhitecoat 10.07.2019 21:21

Re: Buying in England - mortgage providers
 
Hi there,
I've just finished buying a house in the UK (more or less, waiting for completion) and have gone through the mortgage process so can walk you through this if you need, but from what I can tell, you've only just starting a new job having not worked here before. This would work against you as you'd need three months worth of statements as part of their affordability tests which doesn't look like you have yet.

wizwozz 11.07.2019 01:02

Re: Buying in England - mortgage providers
 
Thank you, when I am better prepared then if itís ok I will message you.
Itís probably a bit of a pipe dream for now but nether the less he who dares wins and all of that !!

💪🏻💪🏻💪🏻

SwissMorgs 11.07.2019 05:52

Re: Buying in England - mortgage providers
 
Have a look at Skipton building society.

I would have taken a mortgage with them, but unfortunately the property was below their minimum threshold (£135K).

I would not recommend the product from HSBC which requires you to maintain a sizable balance with them, plus comments Iíve read on here and experiences made by a colleague, their customer service is not the best.

ipoddle 11.07.2019 10:45

Re: Buying in England - mortgage providers
 
A mortgage broker is probably your best bet.

I have a mortgage on a UK property through TSB

peaky 11.07.2019 10:50

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

wizwozz 11.07.2019 14:20

Re: Buying in England - mortgage providers
 
It all sounds like a lot of hassle for a holiday home. Iíll probably skip it and just stay with family instead or we can always rent a place for a week etc. Aswell as council tax and bills it would tear the proverbial out of it for me 🤣

Thank you everyone .Youíve saved me a lot of stress 😎

HickvonFrick 24.08.2020 01:05

Re: Buying in England - mortgage providers
 
Quote:

Originally Posted by SwissMorgs (Post 3082227)
Have a look at Skipton building society.

I would have taken a mortgage with them, but unfortunately the property was below their minimum threshold (£135K).

I would not recommend the product from HSBC which requires you to maintain a sizable balance with them, plus comments I’ve read on here and experiences made by a colleague, their customer service is not the best.

Not true - you can get HSBC premier status without any holdings. I have premier status and have never had any wealth with them never mind at present.

HSBC expat requires £100k Sterling or equivalent to get premier. With premier status there you can get it in the uk (if you don't like the expat mortgage range) without meeting local uk standards.

They are far cheaper than Skipton.


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