The world of mortgages can be complicated and confusing whether you are a first time buyer or have purchased several homes over the years. In these times of uncertainty and upheaval, many people may be thinking about relocating to be closer to family or have a home better suited to their lifestyle. You may be wondering if you are eligible and if it is possible to get a mortgage when moving to the UK. Keep reading to find out everything you need to know about mortgages when it comes to relocating.
Save for a deposit
If you are thinking of moving to the UK one of your biggest concerns is probably where you are going to live and in turn if you will be able to secure a mortgage. It is possible to secure a mortgage when moving to the UK from abroad and many people do but there are a few factors to take into consideration to improve your chances when relocating. If you are moving from rented accommodation to buying your first home, you will need to think about saving up for a deposit first and foremost. Most lenders will ask for at least a 5% deposit and of course the more you can save, the higher value property you will be approved for and you could get a better interest rate too. If you have a home you plan on selling before relocating to the UK then this will put you in a better overall position. You will be able to use the equity from your current home as a deposit for your new one so you won’t need to worry so much about saving up in advance of your move.
Consider the location
When you think about moving to a new place or country, it is always a good idea to thoroughly research the area that you will be moving to. If you have chosen the UK as your new home, it is likely that you have done so for a specific reason. Perhaps you are moving to be closer to family, for a job opportunity or because you have lived there before. You have therefore probably chosen a location with these factors in mind and know what your priorities are when it comes to location. If you are less certain about what area in particular you want to move to, it can be worth baring in mind that the deposit you need and interest rates can differ depending on the city or region. The likelihood of your mortgage being accepted also varies from place to place so if you are quite open to considering different locations, it is worth speaking to a mortgage advisor too see what areas will best suit your budget. You will of course have to take other factors into consideration too as although in London for example it can be easier to get a mortgage approved, the cost of living there is much higher and so you may not be better off in the long run.
Have a secure income
One of the most important factors when getting a mortgage approved is proving that you have a steady and secure income, whether you are relocating country or simply moving down the road. Lenders will need to see that you have a secure income to be able to make your monthly repayments so if you cannot show this it may be a struggle to get an application approved. If your job is not a permanent position you may have to pay higher interest rates or make a larger deposit in the first place. If your situation is a little up in the air, you may be better off renting in the UK for a few months until you are more settled and then start working towards a mortgage application.
Work on your credit rating
Finally, your credit rating is a subject you will hear time and time again in relation to mortgages. Both past and current credit history will be taken in account when applying for a mortgage so in the lead up to your move avoid using any sort of payday loans and keep up to date with credit card repayments. You can improve your credit score by making all your payments and bills on time each month and making sure all your details are up to date.
If you need more advice on mortgages when relocating to the UK, don’t hesitate to reach out to our team of mortgage experts.