Buying a flat

Hi all

I am wondering if anyone can share their experiences of buying a flat in the UK with me.  I am moving back to London after 4 years in Spain and instead of letting again I would like to purchase a flat.

I have spoken to several mortgage brokers to see what type of mortgages are available to me and they all seem to think that I will be able to qualify.  The one weird thing that I was asked for was to get my UK driving license.  The other thing that I see as a potential problem is that I will be on a 2 year working Visa to start out with.  Something that I think is a positive is that I have held a UK bank account for the past 5 years with Barclays (that has been in good standing) and they have seen a continual income stream coming into the account for the entire period (even though I was living in Spain I kept my addresses on file with them as being in London).

Has anyone had experience in getting a mortgage with only a working visa?  What percentage of the total value were they able to get? (I have a 10% down payment)

Also, any other tips or pitfalls that would help me out would be greatly appreciated.

Thanks!!!

nerdgirl- i just exchanged on my first UK house today   the visa thing was an issue for me.

i was on a 2 yrs visa that was running out in 2 months.  i was going through the process (or more accurately my employer was) of renewing my work permit.  all the mortgage brokers i spoke to said i needed at least 2 years on my work permit b/f a lender would lend me money.  and this was with a 30% down payment.  so i had to wait to put an offer in until my work permit was extended.

the other issue was that the mortgage lender would only give me a lower multiplyer b/c limited status here in the country.  they all considered me a high flight risk.  in my case they would give me 3.7 times my salary. 

also, be advised there are upfront costs you should factor in.  all told, my survey, legal, stamp duty, etc... was £4,000.  also it can be a long process... start to finish for me (putting in offer to moving in) has been a 9 week process.  and i gather this smooth compared to some...

Hmmm.  Well that isn't too encouraging for me. 

The mortgage lenders that I have spoken to were way more optimistic than what seems to be your experience.  They have all said that the visa might be a small problem, but with my deposit and salary that it shouldn't be something that stops the process.  Maybe this and coupled with the fact that I have been in the EU for 5 years now is something that they take into consideration...

I might just end up having Barclays do my mortgage since I already have a relationship with them and they can see that my accounts are totally in order.  I have contacted my bank manager and they will work on recommendations for me.  Fingers crossed that this will help me!!!

Meggles

Another question.  What company did you use on your mortgage?  Did you use a broker that specialises in expats?

Thx for the advice!

ended up going with abbey as they had the best 'deal' at the time.  i used a standard mortgage broker.  i may have gotten a better deal going with a specialist expat mortage broker... perhaps b/c you'll have 2 years when you buy (or perhaps 1 year, 10 months) you may be able to do it.  when i first heard they could't give me one b/c my visa was expiring so soon, i searched this forum and it seems to be a common problem.

Just wondering also if there are any other factors that you felt would have helped you out in the process.  Such as ... are you in an executive position, age, marital status...

Ta!

as far as i was told those factors don't matter... what matters is credit rating, down payment, confirmed salary, residency, being on the electoral roll, valuation of the property.  i was single, with very little credit (2 yrs worth of avg credit), good confirmed salary, wasn't on the electroral roll.  pretty straight forward.  it gets more interesting/complicated if you're self-employed, with bad credit.

oh- another thing you might thing a sec about b/c it threw me for a loop- b/c money laundering laws you need to show them how all the deposit money came to be yours... it's not sufficient to show lump sum payments into an account in your name.  it's a new law (april 05) and even my solicitor didn't know what exactly they were looking for.   

Buying a home in the UK is nothing like the states. Buyer beware is the motto here, you are buying "as is" regardless of the state of the home. Solicitors usually use a non lawyer to handle all home closings and they are basically Pa's with a bit of experience, and are useless to say the least. They don't review contracts, ignore your calls and it's a wonder you get to the completion date. Tips for all you buyers with nothing to sell, exchange and complete on the same day, by doing this, you can avoid any potential problems and not have to worry about errors that could lose you your deposit. Also the best time to buy in the UK is 4 weeks before Xmas, especially if its a new build, they want the property off their books and they'll pay for everything including your down payment. Also remember that lenders will not extend you a pence if your still on your two year initial visa, they will want an FLR copy showing your here over two years before they will give you a mortgage promise. Good luck

nerdgirl- i just reread some of my comments and then are a bit downer- these were my house-hunting/buying experiences.  if you come up with something else or you find out any more info please do let me know... good luck .

Geez.  Everything points to discouraging.    I am giving my bank manager a ring this afternoon to see if he can help me out with something.  It sounds like it might be much easier to get my mortgage through Barclays, whom I bank with, since they have all of my information on hand from the last 5 years.  I also hold an EU residency card and work permit for the next 5 years which I'm not sure they will take into consideration as well.

All of this is very confusing....

I'll give you the update after I talk to the bank manager. 

you're doing all the right things... researching b/f you start to look at properties.  that was my big mistake- i found somewhere i loved then i worked things out around it.  more stress, more hurry.  by all means- talk to your bank manager- but if barclays will give you a mortgage it's more than likely another bank/lender will too.  just be careful not to get sucked into a not so perfect mortgage simply b/c you have a good relationship with your particular bank manager.  your particular bank manager doesn't control rate hikes, redemption penalities, etc... ingeneral you're better off dealing with mortgage brokers that have access to all mortgages available, not just a selection.

I spoke to the mortgage advisor for Barclays - and she told me that due to my resident status that they would only do an 80% mortgage for me.  This was no good since I was only planning to put 10% down.

I went back to my bank manager to see if there were other options and it turns out that there is another option.  Since I bank in both London and hold offshore accounts in Isle of Man with international premier banking services I can take an offshore mortgage for up to 90%.  They are looking into the rates and offers for me now.  Another thing that is helpful is that I can do the entire process via email and post.

More information about it here: http://www.barclays.com/internationalpersonal/ib_14_mortgages.htm [nofollow]

I'll keep you updated on the progress of things.

Only 6 days before I am moving back to London (living in Barcelona currently)!

Buying a home in the UK is nothing like the states. Buyer beware is the motto here, you are buying "as is" regardless of the state of the home. Solicitors usually use a non lawyer to handle all home closings and they are basically Pa's with a bit of experience, and are useless to say the least. They don't review contracts, ignore your calls and it's a wonder you get to the completion date. Tips for all you buyers with nothing to sell, exchange and complete on the same day, by doing this, you can avoid any potential problems and not have to worry about errors that could lose you your deposit. Also the best time to buy in the UK is 4 weeks before Xmas, especially if its a new build, they want the property off their books and they'll pay for everything including your down payment. Also remember that lenders will not extend you a pence if your still on your two year initial visa, they will want an FLR copy showing your here over two years before they will give you a mortgage promise. Good luck

I happen to work in firm of solicitors where we handle conveyancing.  You might want to re-read your posts before you generalise so unfavourably like that. 

I stand by what I say, if your that thin skinned I suggest you find another line of work.

Solicitors usually use a non lawyer to handle all home closings and they are basically Pa's with a bit of experience, and are useless to say the least. 

Everytime i have bought a house in the UK, the solicitor did all their own work (they were one-man-band offices), so i dont think what you're saying is completely true.
Any problems i encountered during the purchase were caused by the seller, or the seller's mortgage lender.