Expat Mortgage Application with HSBC
Discussion
Hi guys,
I'm hoping someone can please help me avoid pitfalls with a mortgage application.
I'm an expat in Abu Dhabi, and my bank both here and in the UK has been HSBC. I'm a Premier customer and have a long and good history with them. The property I want to buy is in the UK, and it will be our family home...not a buy to let.
I've already had a decision in principle from HSBC. and I can provide a 20% deposit, which fits within their rules.
I do have a good income here and I can prove it, and I'm on a fixed term 2 year contract which I'm all but certain will be renewed in September 2016. I do have some credit card debts and loans...compared to my earnings they're not that high, but they sound like a lot!
So here we go....
One of the questions I've been asked is about our plans for living in the house. I'm planning on staying in Abu for as long as possible and reducing the mortgage with my earnings here. But I'm worried that if I say that they'll think that I actually intend to rent it out while I stay here. But...if I tell them we're repatriating, that will mean giving up my job etc which would mean the main source of income. Is it better for me to say I'm staying here, even though that means the house may be empty? Or can I say I'm staying in Abu but my family will be alternating between being in Abu and Uk? That last one may turn out to be true actually...I suspect my wife will want to go and live in it for part of the year.
Next one - Should I mention my UK share holdings and directorships? I am a director of and hold controlling stakes in two private businesses in the UK. Neither of the businesses pays me a salary or dividends at the moment although we hope they will in a few years time. And neither of them depend on me for support. Since there's no income from them and the mortgage application is made solely with my salary, I was assuming the bank wouldn't be interested.
I'd be most grateful for any advice.
Thanks in advance,
J.
I'm hoping someone can please help me avoid pitfalls with a mortgage application.
I'm an expat in Abu Dhabi, and my bank both here and in the UK has been HSBC. I'm a Premier customer and have a long and good history with them. The property I want to buy is in the UK, and it will be our family home...not a buy to let.
I've already had a decision in principle from HSBC. and I can provide a 20% deposit, which fits within their rules.
I do have a good income here and I can prove it, and I'm on a fixed term 2 year contract which I'm all but certain will be renewed in September 2016. I do have some credit card debts and loans...compared to my earnings they're not that high, but they sound like a lot!
So here we go....
One of the questions I've been asked is about our plans for living in the house. I'm planning on staying in Abu for as long as possible and reducing the mortgage with my earnings here. But I'm worried that if I say that they'll think that I actually intend to rent it out while I stay here. But...if I tell them we're repatriating, that will mean giving up my job etc which would mean the main source of income. Is it better for me to say I'm staying here, even though that means the house may be empty? Or can I say I'm staying in Abu but my family will be alternating between being in Abu and Uk? That last one may turn out to be true actually...I suspect my wife will want to go and live in it for part of the year.
Next one - Should I mention my UK share holdings and directorships? I am a director of and hold controlling stakes in two private businesses in the UK. Neither of the businesses pays me a salary or dividends at the moment although we hope they will in a few years time. And neither of them depend on me for support. Since there's no income from them and the mortgage application is made solely with my salary, I was assuming the bank wouldn't be interested.
I'd be most grateful for any advice.
Thanks in advance,
J.
Sarnie said:
1) They will not like it if you tell them that the property could remain empty for durations of 30 days or more. What if the property was damaged, broken into, squatters etc?
2) There's no point giving them information about Directorships that can't improve your income figures.
Thanks Sarnie ... so re point 1, do you think I'd be better telling them that my family will be moving back there permanently, while I stay in Abu?2) There's no point giving them information about Directorships that can't improve your income figures.
Sarnie said:
1) They will not like it if you tell them that the property could remain empty for durations of 30 days or more. What if the property was damaged, broken into, squatters etc?
2) There's no point giving them information about Directorships that can't improve your income figures.
Hi Sarnie - in your capacity as a broker, you wouldn't happen to know how they decide what they can lend would you? I presumed it as 3.5 times salary minus debts?2) There's no point giving them information about Directorships that can't improve your income figures.
Thanks,
J.
jezzaaa said:
Hi Sarnie - in your capacity as a broker, you wouldn't happen to know how they decide what they can lend would you? I presumed it as 3.5 times salary minus debts?
Thanks,
J.
For ex-pat mortgages they often convert your income into Sterling and then minus 20-25% for currency fluctuations. Your income will then be assessed on affordability so they will make deductions for dependents (Wife if she's not working and kids) and also for credit commitments....Thanks,
J.
Sarnie said:
For ex-pat mortgages they often convert your income into Sterling and then minus 20-25% for currency fluctuations. Your income will then be assessed on affordability so they will make deductions for dependents (Wife if she's not working and kids) and also for credit commitments....
Interesting...thanks Sarnie...much appreciated 
jinkster said:
Thanks Jinkster...I will call them and see what they're offering. Going from 80% (current offer) to 85% would help me a lot! Edited by jezzaaa on Sunday 1st November 09:18
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