If you’re moving back to the UK from abroad and are looking to buy a home, is it possible to get a mortgage still? And what rates might you expect? We spoke to Aaron Strutt of Trinity Financial Group to find out more.
Many of our readers are moving back to the UK after a period of living abroad and may feel less up to date on the market back here. What can you tell us about what’s been happening to mortgage rates in the UK?
Banks and building societies have been reducing the cost of their mortgages for some time and the rates are incredibly cheap.
Two-year fixed rate mortgages start from 1.2% and five-year fixes from 1.40% if you have a 40% deposit. The arrangement fees are typically £999.
Most of our clients either take a two or five-year fixed rates, but there are some great longer-term fixes or Bank of England base rate trackers.
How easy is it to get a mortgage when returning to the UK?
It is possible to get a mortgage if you are returning to the UK as some of the lenders are more lenient than others.
It is easier to qualify for the mortgage if you have a credit footprint like a bank account, credit card or loan.
It is easier to qualify for the mortgage if you have a credit footprint like a bank account, credit card or loan. Even if you don’t, then we can still help you get a mortgage.
And what about older borrowers – how open are banks and building societies to lending to them?
There is a long list of lenders offering mortgages to older borrowers and they do not have maximum age limits.
Some of the biggest lenders specialising in older borrower mortgages include the Family Building Society and Market Harborough Building Society.
If you’re retired, is it possible for lenders to use your pension or investment income for your mortgage?
Mortgage lenders will use pension or investment income as part of their affordability calculations. They can also take buy-to-let rental income to increase the maximum loan size.
Some of our readers will be looking at a buy to let, perhaps as a foothold back in the UK market or as a second property. How is the purchase market for rental properties looking at the moment?
The buy-to-let purchase market has slowed down over the last few years and it is not uncommon for lenders to tell us around 25% of their buy-to-let applications are for new purchases and 75% for remortgages.
The margin between the cheapest buy-to-let and residential mortgages is reducing as the lenders continue to tempt landlords to purchase more properties or refinance. At least ten buy-to-let lenders are offering sub-1.5% two-year fixes or there are lots of sub-2% five-year fixes. The arrangements fees are typically between £999 and £1,999.
Finally, tell us a little about your services as a mortgage brokers – what are the advantages of going through Trinity Financial rather than trying to do it yourself?
The mortgage market is arguably more complex than it has ever been and the lenders have very different acceptance policies. Our brokers can help you to navigate the market and secure great terms.
We do everything possible to make sure you get the most competitively priced mortgages and the fastest offers.
For a free, no-obligation introduction to Trinity Financial, simply fill in our form below with your requirements and we will be in touch.