I was in touch with a UK mortgage broker last year about getting a buy to let mortgage but at the last minute the bank took this option off the table. I know 1 or 2 big banks there do a min 100k sterling loan with lots of conditions but does anyone know any ways round this?
Also is it worth me paying for the first property in cash? Would this make it more likely for them to lend for another IP? I'm a UK citizen but non-resident.
Any advice would be really appreciated.
Thanks!
I suggest you have a chat with Richard Taylor who is 007 on this forum. He has had a lot of experience with English property and is in England right now.
If not he will be back at the end of the month
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Great, thanks Nigel
Hi Charlie
As Nigel mentioned i am in the UK for another week.
When i came last year we sourced over 20 properties for my Australian investors using a variety of UK lenders.
Unfortunately finance market has changed dramatically over here and there is now only 1 lender who will consider applications from Non Residents for BTL loans.
Minimum Loan £100,000 and maximum lvr 60%.
Rates from 5.29% with fairly hefty set up fees.
In my opinion you are better to purchase in Australia if you are after some form of gearing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
That would explain the issues I've been going through in trying to find a lender to refinance my BTL UK property. My intention was to refinance and purchase another BTL, but my current property has lvr of 60% at the moment – so even with the lender you mentioned, there is no capital available for me. Are you able to elaborate at all on why the UK and offshore banks are closing down their products to non-residents living in Australia? I ask so that I can keep my eye on the mortgage markets for any events that may change this in our favour.
Regards,
Chris.
Hi Chris
I wish i could give you an suitable answer but i can't.
Last year I went over on a buying spree for clients picking up really good investment properties and organising UK finance with a number of lenders. This year the avenues have all dried up.
I am not aware on any UK lender that will consider a loan for a non resident even if the are a Citizen mainly due to the total lack of liquidity available for lending in the UK.
Even with the new loan rate loans the UK Govt are offering to Banking lenders over there to open up mortgage access these lenders are not prepared to consider application form non residents.
More than tough i hate to say darn impossible at the moment.
Will update the situation during the year if things change.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hello,
Best to contact Barclays Bank as they may be able to assist. They have a call back service. Generally only do around 65% LVR.
Regards,
Steve
Thanks Richard. Please do let me know if you hear of any changes.
Thanks for your comment as well Steve. I tried contacting Barclays (Offshore) a month ago or so. They sent me some information, but one of their requirements was that they required my monthly salary to be deposited in to one of their offshore accounts which I have no interest in doing.
Natwest International looked good rate wise, but when I spoke with them they couldn't get me off the phone fast enough once I mentioned I was an Australian resident.
Regards,
Chris.
Hate to say Barclays International will only consider the application where your salary is paid in GBP.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi boys bit of an update on UK Financing.
They say a week is a long time in politics but no where near as it in UK financing where things can change quicker than the weather.
We have now had confirmed and actually had a deal approved already from a UK lender lending to a UK Citizen living and working here in Australia but wanting to buy back in the mother country.
Non of the major lenders will touch such a deal even thru their own Offshore Branches.
<edit>
Certainly a lot easier to do a deal where you already own a property in the UK but for those buying back into the industry or buying for the first time we can now do this as well.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
do those same lending rules apply to the Ireland and Scotland? or just to to british properties?
Hi Rosa
No i hate to say NO as Scottish and Irish lending legislation is totally different again.
This only applies to properties in England and Wales.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
I was wondering if you had noticed any changes to lending opportunities for UK properties over the last six months?
Cheers,
Chris.
Hi Chris
Hate to say no is no easier.
Still no UK lender that will lend to a expat or non resident.
We are off there for 2 months come November on a buying spree for clients but financing this time will have to be more creative.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It confirms what we've ben finding too. We've had several mortgage brokers in the UK looking into it but no-one could find us a decent re-finance deal. We have property in the UK but moved out here in 2007 and are now Aussie citizens. Luckily the mortgages in the UK still have some time to run since we wouldn't have to sell them at current prices.
Richard – let us know if circumstances change….
Cheers,
Karen
Yes only 1 lender in the UK now lending now to Non Residents and it is not a major Bank.
Cheers
Yours In Finance
Richard Taylor | Australia's leading private lender
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