Archive » United Kingdom » mortgage whilst on HSMP?
| Author | Post |
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| madankumars Member Member # 5174 | Posted March 03, 2004 11:17 PM any HSMP holders in the UK who's got a good mortgage deal? do mortgage lenders consider us as residents (get away with 3% deposit) or non resident (25% deposit needed)? we have signed up that we will make the UK as our "main home" (yeah right!). does this have any effect? [ March 04, 2004: Message edited by: madankumars ] |
| madankumars Member Member # 5174 | Posted March 05, 2004 09:58 AM ???? none? |
| Dip Member Member # 4428 | Posted March 05, 2004 10:07 AM quote: 1. What is a good mortgage deal? They are all more or less the same unless you are talking of a loan in millions 2. What deposit are you ref' to? Isnt it 10% across the board? 3. The only thing you are not able to do as a WP or HSMP holder is get the "one account", wherein you club your savings with the mortgage account and pay interest on the net balance. Are you applying/have applied for one? Regards |
| madankumars Member Member # 5174 | Posted March 05, 2004 01:36 PM 1. i disagree, though you might get some additional privileges if you are talking in mil. 2. its not. you can put in a 3% deposit with halifax if you are a 1st home buyer. but they ask for 25% if you are an expat. 3. it could be at the descretion of the bank yeah i am looking to buy a 2 bed apartment around stratford area... will be a good investment if london wins the olympic bid |
| Dip Member Member # 4428 | Posted March 05, 2004 02:18 PM 1. You'd end up counting pennies the more banks you contact 2. I know of expats who paid 10% 3. Its the law (refer to Woolich application form). In a nutshell...I thought you were looking for answers... and was merely quoting my experience ... pity I couldnt be of any help but good luck to you. Rgds |
| Chess Member Member # 7233 | Posted March 05, 2004 03:26 PM Madan, This is very intersting - I thought you said London was a Sh£)T hole and now you are even planning to buy a house I think you should buy in Sidney or Canberra first Dont forget , it aint easy to get on the property ladder these days - but best of luck!!..you will definately need it -------------------- .........Nkosi sikelele Africa |
| madankumars Member Member # 5174 | Posted March 05, 2004 03:30 PM quote: did i say i was going to live in the house permanently? i am just investing for my retirement mate! Dip - well, if you know of expats who paid 10%.... thats what i wanted to find out. why don't you help me get in touch with them? accepted that you know british law better than me! besides having "one account" was not in my agenda anyway! [ March 05, 2004: Message edited by: madankumars ] |
| Chess Member Member # 7233 | Posted March 05, 2004 03:45 PM Madan, I paid 3% deposit on my home + conveyancing fees -------------------- .........Nkosi sikelele Africa |
| madankumars Member Member # 5174 | Posted March 05, 2004 04:06 PM chess... would be grateful if you could give me more info (pls PM me). i hope you could give me info like cheers mate |
| Chess Member Member # 7233 | Posted March 05, 2004 04:16 PM Madan, Which Bank?
What Qn's they asked? How much money do I need Any other useful Info I took the bank manager out for a Curry Vindaloo
-------------------- .........Nkosi sikelele Africa |
| JGP Junior Member Member # 7704 | Posted March 05, 2004 04:38 PM Does that mean a newly arrived HSMP holder can qualify for a mortgage after 3 months of employment and good credit rating? |
| Dip Member Member # 4428 | Posted March 05, 2004 04:53 PM Madan, I am not an expert in British law. An easier option is to walk into a Estate Agents office (who arranges mortgages too). Discuss your case with them and you will be amazed with the options you have. Moreover they will also answer all your queries. Rgds Ps: Sorry cant give personal details on an open forum. Try Woolich, if they did for someone, they would do for you. |
| madankumars Member Member # 5174 | Posted March 08, 2004 07:07 PM chess wow mate you are really highly skilled. i think the british govt. is soon gonna award you honorary citizenship! |
| Joseph01 Member Member # 7141 | Posted March 08, 2004 07:50 PM One more question for you all. What's the maximum mortgage amount that you can get as a multiple of your pretax salary income? Is there a difference depending on how much equity you put down? For example is it 4X pretax income if you pay 3% and 6X if you put down 30%? Is there a difference in how much they lend when you have ILR? Thanks Joseph |
| Kayalami Member Member # 5984 | Posted March 08, 2004 08:05 PM Joseph, Good to see you on board.. you must be pretty busy. Banks have a normal/ advertised lending range but will usually negotiate deals with various individuals (especially high networth) in respect of mortgage applications and how much of a risk you are to them. This is why you see various posters saying I got 10%, my friend got 5% and responses saying no its not possible etc. UK banking discretion is so wide that they do this even with opening an account where some banks will accept your application for a bank account without any utility bills but an employers letter and some won't . There is no maximum mortgage amount and it is not dependent on equity..if your bank operates a 4X pre-tax multiple then the only way to get a bigger mortgage is to get a bigger pay packet. Holding ILR does not change this multiplier principle. What it does is expand the list of financial organisations willing to offer you a mortgage and with competition comes better deals such as payment of your legal/survey fees or part of your downpayment, free home insurance, payment holidays (beware this increase your overall payment as interest still builds up). -------------------- ---audi alteram partem--- |
| Joseph01 Member Member # 7141 | Posted March 08, 2004 11:36 PM Many thanks Kayalami! Joseph |
| madankumars Member Member # 5174 | Posted March 09, 2004 03:09 PM just spoke to HSBC and they are ready to lend upto 95%. i told them that i am a HSMP holder, showed my passport and visa validity. i told them that my visa will be extended for another 3 years, after which i will get ILR. HSBC said they are happy to lend if they could see some official home office documents which explain more about HSMP. they also dont mind me leaving the country before I get ILR, as long as i am able to continue with my mortgage :-). |
| Dip Member Member # 4428 | Posted March 09, 2004 03:17 PM Madan, Although the HO letter should be sufficient, in case they have further queries on HSMP, ask them to check with their HR. Someone I know (on HSMP) has joined their CIBM dept. Rgds |
| Chess Member Member # 7233 | Posted March 09, 2004 03:20 PM Madan, Good luck with your house hunting!! The 5% deposit + conveyancing fees assume that you are to reside in the property. If you are 'buying to let' then the mortgage would have to be different..a deposit of 15/20% is usually required. Dont forget that house prices in London are currently 'over - inflated'....with potential interest rise by the BoE, then you could find yourself in negative equitty -------------------- .........Nkosi sikelele Africa |
| Kayalami Member Member # 5984 | Posted March 09, 2004 04:26 PM Word on the street is also that there may be a sales tax on properties which are not your primary residence as the exchequer zones in on the huge windfalls in the booming property market (well it was anyway and now on a downward slope). This is to balance the books as investors (Madankumars ) shy away from stocks to the 'buy to let' market leaving smaller capital gains receipts for the government - you may have seen the record level of borrowing at the previous budget. Such a 'sales tax' move is unlikely to be before the next election IMHO spring 2005. Once in place except investors to shift their properties leading to an oversupply. To those buying it may be worth holding on and seeing price movements over the next quarter. In the meantime your NI contributions will no longer be capped from April 2004 effectively adding to the tax revenue. -------------------- ---audi alteram partem--- |
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