Ex pat buying in UK for retirement

Posted on 17 February 2010 by John

I am an Australian resident tax payer and British citizen. I want to buy a home in the UK for retirement in 3 years.  I wish to borrow the funds in the UK. Direction please? Thank you, John.


The first thing you need to do is find out whether or not the Australian Corporation Compliance Act applies to you.  This act prohibits financial institutions outside of Australia and it's territories opening new accounts or other financial products for Australian residents.  I believe that as a British citizen it will not, but I am unsure if you tax status changes this.

Lenders will want to know and want you to be able to prove what you income will be once you return to the UK as they have a duty to make sure any mortgage is affordable into retirement and not just at the time it is taken out.

The problem with approaching the UK high street lenders will be you current residence in Australia and the gap between buying the property and your return.  They will also struggle with their credit scoring systems because, unless you have an existing address in the UK, you will not appear on any credit ratings agency.

For these reasons I suggest that you speak to a good independent mortgage adviser who has contacts with the international arms of the major UK banks.  They specialise in dealing with customers such as yourself and will be able to advise you how to secure funding for your retirement home.


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