Buying in the UK

Posted on 2 April 2011 by eileen klysner


My husband and I want to relocate to Kent. We live in Denmark and are both retired. We have a joint income from pensions of 40000 and savings of around 100000 GBP. We do not own property anywhere at the present. Can we get a mortgage?

Eileen,

Under EU law you will be treated by UK Lenders as if you were a UK citizen.  The amount you can borrow will be limited by your income and the term you can borrow over is going to be restricted by your ages.  The normal maximum age at the end of the mortgage term is 75, but there are a few Lenders who will go beyond this.

The real difficulty is going to be a lack of a UK credit record.  Most Lenders now operate an automatic scoring system when assessing applications and these are heavily influenced by information held on UK credit reference agencies.  It is very likely that you will fail these automatic systems and need to find a Lender who manually underwrites their applications.

You will also need to consider what affect currency fluctuations will have on your ability to repay the mortgage.  If your income is in Danish Krone and the mortgage in GBP a change in the exchange rate can make a big difference in your ability to pay.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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