Current mortgage situation
Discussion
Has anybody applied for a mortgage lately, or anybody with any internal knowledge of lenders etc give any broad advice based on the below?
Long story short, my wife and I have just emigrated back from Australia (end of Dec, everybody will think we're mad, I don't disagree) and are looking to buy our first house (ever, anywhere, so truly FTB).
We both transferred back with our respective companies, however our employment contracts changed (not sure if that matters as far as a lender is concerned). We're also still working through the logistics of getting a joint account set up over here (everything is taking longer because of covid), but aside from that both have good UK credit scores according to Experian.
We're in a very lucky financial position, in that we have ~200k cash for a deposit and a joint income evenly split of about 170k base, which rises to about ~210k if you include bonus (I don't think lenders will count that though?).
My gut instinct tells me that this should all add up from a lenders perspective, we're looking to buy around the 700 mark (assuming the salary multiplier works?)
My main questions are:
Would our recent country move / change of employment have any impact? For example might we need 3 months payslips to prove income?
Should we expect application delays due to covid? We're actively out looking at places currently, and agents are starting to ask if we have an agreement in principle. Would it be wise to get that sorted asap?
Cheers,
Andy
Long story short, my wife and I have just emigrated back from Australia (end of Dec, everybody will think we're mad, I don't disagree) and are looking to buy our first house (ever, anywhere, so truly FTB).
We both transferred back with our respective companies, however our employment contracts changed (not sure if that matters as far as a lender is concerned). We're also still working through the logistics of getting a joint account set up over here (everything is taking longer because of covid), but aside from that both have good UK credit scores according to Experian.
We're in a very lucky financial position, in that we have ~200k cash for a deposit and a joint income evenly split of about 170k base, which rises to about ~210k if you include bonus (I don't think lenders will count that though?).
My gut instinct tells me that this should all add up from a lenders perspective, we're looking to buy around the 700 mark (assuming the salary multiplier works?)
My main questions are:
Would our recent country move / change of employment have any impact? For example might we need 3 months payslips to prove income?
Should we expect application delays due to covid? We're actively out looking at places currently, and agents are starting to ask if we have an agreement in principle. Would it be wise to get that sorted asap?
Cheers,
Andy
The first thing that occurs to me is with the change of employment contracts is there a probationary period as such where your employer can terminate your employment with little to no notice or reason or do you have a long standng employment history which has carried over with the move?
If you have a probationary period that is likely to make lenders uneasy until it has passed by, even more so in the current climate
If you have a probationary period that is likely to make lenders uneasy until it has passed by, even more so in the current climate
You may be somewhat limited in who will offer you anything for the first six months. Make sure you are on the electoral roll, get some bills going etc. When we came back from Switzerland there were only two lenders from memory who we could use - no probation period, 4 months after returning. A high loan to value certainly helps.
Best advice, though, is use a good broker, I’ve not used Sarnie but he’s regularly recommended on here.
Best advice, though, is use a good broker, I’ve not used Sarnie but he’s regularly recommended on here.
Having done the exact same move 4 years ago, I fear it may not be quite as straightforward as you hoped. Essentially most of the high street lenders get twitchy if your situation is remotely out of the ordinary. Essentially you have two things going against you
1)You have only been in your job since December, I don't know if they will take the fact that you worked for the same company in Australia into account.
2)You have not lived in the UK for the the last two (maybe three I cannot remember) years.
Now all is not lost, there will always be someone willing to lend you the money but I suspect you will find your options are not as great as someone who has always lived in the UK and worked in the same job for years.
Edited to say you will always need three months payslips no matter what.
1)You have only been in your job since December, I don't know if they will take the fact that you worked for the same company in Australia into account.
2)You have not lived in the UK for the the last two (maybe three I cannot remember) years.
Now all is not lost, there will always be someone willing to lend you the money but I suspect you will find your options are not as great as someone who has always lived in the UK and worked in the same job for years.
Edited to say you will always need three months payslips no matter what.
Lardydah said:
Has anybody applied for a mortgage lately, or anybody with any internal knowledge of lenders etc give any broad advice based on the below?
Long story short, my wife and I have just emigrated back from Australia (end of Dec, everybody will think we're mad, I don't disagree) and are looking to buy our first house (ever, anywhere, so truly FTB).
We both transferred back with our respective companies, however our employment contracts changed (not sure if that matters as far as a lender is concerned). We're also still working through the logistics of getting a joint account set up over here (everything is taking longer because of covid), but aside from that both have good UK credit scores according to Experian.
We're in a very lucky financial position, in that we have ~200k cash for a deposit and a joint income evenly split of about 170k base, which rises to about ~210k if you include bonus (I don't think lenders will count that though?).
My gut instinct tells me that this should all add up from a lenders perspective, we're looking to buy around the 700 mark (assuming the salary multiplier works?)
My main questions are:
Would our recent country move / change of employment have any impact? For example might we need 3 months payslips to prove income?
Should we expect application delays due to covid? We're actively out looking at places currently, and agents are starting to ask if we have an agreement in principle. Would it be wise to get that sorted asap?
Cheers,
Andy
Andy,Long story short, my wife and I have just emigrated back from Australia (end of Dec, everybody will think we're mad, I don't disagree) and are looking to buy our first house (ever, anywhere, so truly FTB).
We both transferred back with our respective companies, however our employment contracts changed (not sure if that matters as far as a lender is concerned). We're also still working through the logistics of getting a joint account set up over here (everything is taking longer because of covid), but aside from that both have good UK credit scores according to Experian.
We're in a very lucky financial position, in that we have ~200k cash for a deposit and a joint income evenly split of about 170k base, which rises to about ~210k if you include bonus (I don't think lenders will count that though?).
My gut instinct tells me that this should all add up from a lenders perspective, we're looking to buy around the 700 mark (assuming the salary multiplier works?)
My main questions are:
Would our recent country move / change of employment have any impact? For example might we need 3 months payslips to prove income?
Should we expect application delays due to covid? We're actively out looking at places currently, and agents are starting to ask if we have an agreement in principle. Would it be wise to get that sorted asap?
Cheers,
Andy
A few initial thoughts,
- There will be lenders who won't lend to you because you have foreign address history. This will be the case until you have been here for three years.
- As someone has already mentioned, probationary periods may be an issue if there are any inserted into your new contracts
- Passing a lenders credit score may be an issue for you but that depends on what activity has been on your credit files over the time that you have been in Australia.
- When did you start your new roles in the UK? Some will want 3 months pay slips, some will accept 1, some will lend to you off the back of your signed contract......so it depends on what you currently have and when you find a property you want to buy, which is an unknown currently.
- The delays are mainly sorted now with most lenders after the stamp duty stampede of the last six months
Affordability isn't an issue, but lender selection is key.
Gassing Station | Finance | Top of Page | What's New | My Stuff