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EU national looking to get a residential mortgage


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Hi Hubbers!

 

Looking for some advice/guidance on behalf of a friend.

 

The friend is an EU national looking to get a residential mortgage, from a lender in the UK, to purchase their first property in the UK. They have property in their homeland and their source of income is mainly through dividends.

 

From a search online, I found the following (My friends situation)...

Quote

 

You can get a mortgage just like a UK citizen if you have:

  • Lived in the UK for at least 3 years (2 years)
  • A UK bank account (Yes)
  • A permanent job in the UK (Within the next few months)

 

 

 

They're speaking with a broker at the moment, though their options look slim to none, so I'm looking to understand:

  1. What other options there may be
  2. They are looking to use part of the property as their own office space for a company they are looking to setup. Are there any considerations that they should be made aware of? e.g. Tax implications/breaks, insurances etc.

 

Many Thanks

Kalok

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Hi there,

I'm afraid I'm not sure whether your friend lives in the UK or not, as I'm not sure whether you put the bold comments into the quoted section or they were part of the quote.

If your friend lives outside of the UK, has never had any connection to the UK, then the options will be very limited, but not necessarily impossible and indeed he/she should seek broker help.

If your friend lives in the UK (even if for less than 3 years), then it's still a good idea for them to speak to a broker, but there will be more lender options.

OK, scrap what I've just said above, as I've just seen that the comments in bold reflect your friend's situation. In this case, the short answer is: yes, he/she can get a mortgage, so speak to a broker and they'll get the best deal from a suitable lender who can accept less than 3 years in the UK and income from a new job.

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On 7/20/2020 at 10:47 AM, lilla d said:

Hi there,

I'm afraid I'm not sure whether your friend lives in the UK or not, as I'm not sure whether you put the bold comments into the quoted section or they were part of the quote.

If your friend lives outside of the UK, has never had any connection to the UK, then the options will be very limited, but not necessarily impossible and indeed he/she should seek broker help.

If your friend lives in the UK (even if for less than 3 years), then it's still a good idea for them to speak to a broker, but there will be more lender options.

OK, scrap what I've just said above, as I've just seen that the comments in bold reflect your friend's situation. In this case, the short answer is: yes, he/she can get a mortgage, so speak to a broker and they'll get the best deal from a suitable lender who can accept less than 3 years in the UK and income from a new job.

Thank you for taking the time to respond, Lillia!

My friend has sought advice from a broker, though they appear to be stuck in the mud. Is there a specialist type of broker they should be searching for? Expat, for example? Trying to find reputable ones can be challenging, so any names or leads would be great!

I neglected to mention that they are looking at property's in excess of £1m, so I would imagine they would need a larger deposit to offset risk for the lender.

 

Many Thanks (again)!

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As your friend is an EU national living in the UK, it's not a specialist mortgage, certainly not expat.

Granted, the lender options will be limited when someone is looking to buy for over £1m, especially if they don't have a big deposit. The reason behind is that lenders have a max amount that they are happy to lend on 85-90% LTV basis. For example, HSBC would only lend 80%, when someone would like to borrow £500k-£1m.

And of course, there are a million other factors that lenders consider :)

Considering that I'm a broker and regularly deal with high value purchases, would be happy to look at your friend's situation as well. I'll send you a PM with my details.

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