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-   -   Know any UK expat mortgage brokers for non-UK, non residents? (https://www.englishforum.ch/housing-general/294464-know-any-uk-expat-mortgage-brokers-non-uk-non-residents.html)

Troublawesome 06.10.2019 15:48

Know any UK expat mortgage brokers for non-UK, non residents?
 
If someone wants to buy a house in the UK for investment purposes and wants a mortgage, as a non-British and non resident then his choices are to go to a mortgage broker. Also don't own any UK property but do have UK bank accounts as I lived there a few years.

Any experiences with reputable mortgage brokers for expats to share?

The way I researched it is:

- Around 2k for broking fees
- Average 4-5% interest rate for min property value of 150,000
- ERC charges from 0.5-2%

Very few choices in the market and very expensive.

Someone mentioned if you already have 1 property in the UK it tends to be much better and have access to dozens more options? I was even thinking of buying cash a cheap property and then use it as collateral for the main one I want to buy with much better terms.

I could even get a swiss personal loan for 100k and repay it in 1 year and still would be less hassle. Then I could buy the UK property with cash.

For someone who is quite a low-risk, cash-rich client with a nice Swiss salary it is surprising to me how little is offered as choices.

I am using Liquid Expat Mortgages but any other suggestions from first hand experience are welcome.

Jim2007 06.10.2019 15:58

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Troublawesome (Post 3106829)
For someone who is quite a low-risk, cash-rich client with a nice Swiss salary it is surprising to me how little is offered as choices.

You are not low risk, because of the obligations the Mortgage Credit Directive (MCD) places on the lender in respect of a borrower who's income and savings is in a foreign currency.

Whether the remains the case after BREXIT, we will just have to wait and see.

peaky 07.10.2019 11:34

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
I looked in to it and found The Marsden Building society, L and C, Skipton, Safron Building society.

When I looked you would be looking at about 5-6% interest on a repayment mortgage, and thats only fixed for a few years. If the rates go up, and they dont have much room to go down, then the repayments start to get a bit cheeky.

On top of your calculations and criteria. You will need to earn about 125% in rent of your mortgage repayment. Which buying a property for 150k and having a mortgage of a 100k would probably be quite difficult to get enough rent to cover the mortgage and the extra 25%, so you'd need to be considering putting down 100-150k and having a loan of 100k, to qualify for a mortgage.

If you have 50k to put down, I would consider a cash purchase in the north somewhere, small place where the yield is still not bad, risk is minimal and avoid the UK banks

Troublawesome 08.10.2019 23:14

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
I got some offers for 3.1% fixed for 2 years on a 65% LTV or 3.4% for a 75%.

All things considered, it's not a bad deal and in 2 years time I can shop around with a lot more choices as I'd be already in the market. Making them trust you without any UK property is the hard part it seems.

With the being so low and an opportunity in November of going even lower, it makes sense for us to go ahead as we wanted this for a while.


Do you know if there are real estate agents that can handle viewing properties for you as well as taking care of all the legal stuff like finding a solicitor, ordering valuations etc? So I wouldn't need to go to the UK unless it's for the very last part, signing the papers.

I found agents who handle the solicitor part but doesn't seem like there are firms to handle the whole property advice and viewings part, I'd be happy to pay a good fee for that as the days off work and air tickets would cost me way more.

Jim2007 08.10.2019 23:33

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Troublawesome (Post 3107598)
With the being so low and an opportunity in November of going even lower, it makes sense for us to go ahead as we wanted this for a while.

And if property prices fall after BREXIT you could be caught with negative equity or if the BOE are forced to reintroduce currency controls after BREXIT you could have difficulty paying it back....

Better to sit it out for a while and see how it pans out.

peaky 09.10.2019 09:59

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Troublawesome (Post 3107598)
I got some offers for 3.1% fixed for 2 years on a 65% LTV or 3.4% for a 75%.

If thats what youve been offered then thats great, but I would be surprised. A first time buyer, over seas national and resident and a buy to let mortgage.

That figure is more likely to be someone living in the house.

If its what youve been offered I would be tempted to go for it, just make sure you have made your intentions clear on the offer you have.

And still I think youll need 125% excess rental income over the repayments.

Negative equity is less of a concern. Of course you want to make as much as possible, but even with Brexit, if you bought and the property lost 20%, over 20 30 years it should go up 40 or 50 % so long term you should be always ok, its only if you needed to sell suddenly

Good luck.

Blueangel 09.10.2019 12:14

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
If it's any help, my first port of call for anything relating to mortgages has always been John Charcol.

https://www.charcol.co.uk/

fatmanfilms 09.10.2019 12:40

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Blueangel (Post 3107689)
If it's any help, my first port of call for anything relating to mortgages has always been John Charcol.

https://www.charcol.co.uk/

They were big at pushing endowment mortgages in the UK when I had an appointment in the 1980's. Just after commission if you ask me.

Blueangel 09.10.2019 13:40

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by fatmanfilms (Post 3107695)
They were big at pushing endowment mortgages in the UK when I had an appointment in the 1980's. Just after commission if you ask me.

Everyone was big at pushing them in the 80s when they were a new model. 83% of new mortgages were endowment linked according to gov stats, but by the time I used them for reference, they were set firmly against them. To be honest, it was never a product that appealed to me. I still always save up for things and was always certain that I only wanted a repayment mortgage.

One of my friends was part of the first appointed, official team to investigate that product and she advised me against them back 94. She also recommended John Charcol for reference and advice. I wrote to them and they gave me the contact details of a respected broker in my area and which products were the most suitable for me.

fatmanfilms 09.10.2019 13:46

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Blueangel (Post 3107706)
Everyone was big at pushing them in the 80s when they were a new model. 83% of new mortgages were endowment linked according to gov stats, but by the time I used them for reference, they were set firmly against them. To be honest, it was never a product that appealed to me. I still always save up for things and was always certain that I only wanted a repayment mortgage.

One of my friends was part of the first appointed, official team to investigate that product and she advised me against them back 94. She also recommended John Charcol for reference and advice. I wrote to them and they gave me the contact details of a respected broker in my area and which products were the most suitable for me.

It's absurd to claim they were a 'new model' in the 1980's, my father had an endowment mortgage in the 1960's.
Wide boy commission hungry spivs after a fast buck. They also thought I needed additional insurance :D. Clearly I just ran a mile

Blueangel 09.10.2019 13:53

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
We're talking about someone who wants a mortgage today, not 50+yrs ago. :rolleyes:

Troublawesome 09.10.2019 16:24

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
I contacted Charcol and they gave me the exact 2 choices the other broker gave me, seems like the game is rigged to me.

It looks more and more that I should buy in cash instead, with a mortgage (even with good terms) it'd cost me an extra +50% over the long term but if I buy cash I make a profit from the first rent.

Obviously I'll go for something cheaper. Goes without saying that I'm waiting for Brexit to take advantage of a good fall in the , that should help things.

Once I have the first property, it'll be easier to get a proper mortgage with a decent rate.

It is depressing when I look at the quality of houses in the UK. It's like I'm looking through a time window into the 1970s so when compared to the prices it is bizarre but the rental yield is still quite good compared to Switzerland.

fatmanfilms 09.10.2019 19:56

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Troublawesome (Post 3107768)
I contacted Charcol and they gave me the exact 2 choices the other broker gave me, seems like the game is rigged to me.

It looks more and more that I should buy in cash instead, with a mortgage (even with good terms) it'd cost me an extra +50% over the long term but if I buy cash I make a profit from the first rent.

Obviously I'll go for something cheaper. Goes without saying that I'm waiting for Brexit to take advantage of a good fall in the , that should help things.

Once I have the first property, it'll be easier to get a proper mortgage with a decent rate.

It is depressing when I look at the quality of houses in the UK. It's like I'm looking through a time window into the 1970s so when compared to the prices it is bizarre but the rental yield is still quite good compared to Switzerland.

I would not bank on the falling significantly, no deal is pretty much priced in already.

eairicbloodaxe 09.10.2019 22:41

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Once I have the first property, it'll be easier to get a proper mortgage with a decent rate.

If only this were true. It should be true. But it is not always.


We have 6 UK rental properties, and bought the last 2 for cash. But it has now taken a year to... almost... get a mortgage. They find every excuse.


This is also the experience of my many associates in the BTL world, north and south of UK.



Lending is extremely tight in the UK even if you have a 100% good credit rating. If you live abroad, are paid in CHF... it gets even harder.


If you are borrowing 1m plus it might get easier. But for 200k... the risk managers find it all too easy to say no, right now.


Regards




Ian

Troublawesome 10.10.2019 00:29

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Thanks for the feedback everyone, to be honest I am not too happy to go ahead with it so mulling it over over the next few weeks and waiting for Brexit news before deciding.

I don't think no deal Brexit is priced in, that's wishful thinking. No one believes even Bojo will let it happen as it will be a disaster so if he does I expect the to take a massive beating like 10% in 1 day. It will be a good time to get some pounds if it happens.

Blueangel 10.10.2019 01:35

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
If you don't mind me asking, which areas are you looking at, and what type of property? I noted your remark about 1950s and it made me wonder which areas you're considering.

Troublawesome 10.10.2019 20:48

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Edinburgh and Glasgow. But other places are no different.

Half of them don't have double glazing and the other half do not have central heating. Majority of them have kitchens without windows and most of them also have bathrooms without ones.

It's like living in the middle ages compared to any central European country.

eairicbloodaxe 10.10.2019 22:09

Re: Know any UK expat mortgage brokers for non-UK, non residents?
 
Quote:

Originally Posted by Troublawesome (Post 3108173)
Edinburgh and Glasgow. But other places are no different.

Half of them don't have double glazing and the other half do not have central heating. Majority of them have kitchens without windows and most of them also have bathrooms without ones.

It's like living in the middle ages compared to any central European country.


None of our rental houses meet your specification. All have double glazing and central heating. All windows and kitchens have a bathroom. All are 2 bed and above. And we bought them like that. Never paid more than 140k yet.


Admittedly, they are all in Leeds. Scotland is a different country.


Regards




Ian


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