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Do British expats need a home country credit history to get a mortgage?
| Published: | 9 Aug at 6 PM |
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As British property prices fall due to the threat of a no-deal Brexit, many UK expats might be tempted to invest in a buy-to-let as a backstop for future residence if they’re kicked out of their present locations.
One worry for those who’ve led a less than organised life prior to emigrating is the possibility of a prerequisite for a UK credit history as part of their mortgage application. The simple answer is a reassuring ‘no’, although a good credit record might be of use in getting a better deal as regards interest rates, especially from UK-based lenders offering flexible and competitive terms.
The majority of UK lenders as well as their offshore equivalents require only three years’ address history, and expats who’ve worked overseas for a duration normally exceed this timescale. However, issues can arise if expats have kept their home country property or parents’ home as a banking address, but it’s generally good news under these circumstances as a search is very unlikely to reveal any anomalies. It can actually be helpful, as it increases the number of lenders who don’t insist on minimum loans of £100,000 as well as opening up a larger range of suitable local deals. In the main,
UK lenders are quicker for main residential or buy-to-let loans and have lower arrangement fees, better interest rates and a wider choice of mortgage options. Expats can actually create their own credit scores, by firstly keeping on a UK address for correspondence and banking or reinstating a new address such as the parental home. Before applying for a mortgage, it’s recommended you get an online copy of your file from one of the three major agencies – Equifax, Experian or Call Credit. Even if there are no issues, forwarding the file to your mortgage broker will help sort out any issues before your mortgage is applied for.
One worry for those who’ve led a less than organised life prior to emigrating is the possibility of a prerequisite for a UK credit history as part of their mortgage application. The simple answer is a reassuring ‘no’, although a good credit record might be of use in getting a better deal as regards interest rates, especially from UK-based lenders offering flexible and competitive terms.
The majority of UK lenders as well as their offshore equivalents require only three years’ address history, and expats who’ve worked overseas for a duration normally exceed this timescale. However, issues can arise if expats have kept their home country property or parents’ home as a banking address, but it’s generally good news under these circumstances as a search is very unlikely to reveal any anomalies. It can actually be helpful, as it increases the number of lenders who don’t insist on minimum loans of £100,000 as well as opening up a larger range of suitable local deals. In the main,
UK lenders are quicker for main residential or buy-to-let loans and have lower arrangement fees, better interest rates and a wider choice of mortgage options. Expats can actually create their own credit scores, by firstly keeping on a UK address for correspondence and banking or reinstating a new address such as the parental home. Before applying for a mortgage, it’s recommended you get an online copy of your file from one of the three major agencies – Equifax, Experian or Call Credit. Even if there are no issues, forwarding the file to your mortgage broker will help sort out any issues before your mortgage is applied for.
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