Buying a UK Property from Thailand

[fletchsmile]

I'm thinking about buying a property for rental/investment purposes in North West of UK, maybe even a future home at some points if the kids go to college there. As I'm Thailand based the funds will be coming from here.

The attraction is that interest rates are so low in the UK - I've recently seen 5 year and 10 year mortgages fixed at historic lows + I have family nearby the property I'm looking at + might want the property in the future for family reasons.

We could easily get a mortgage in Thailand on our home here and fund that way, but don't want to do that given the high rates and FX risk 6% - 7% THB rates here vs 2 - 4 % initial GBP fixed rates in the UK.

Any general thoughts or suggestions or tips would be welcome?

How easy it is to obtain a mortgage in the UK for a non-resident?

Anyone done that from here or experience they'd like to share?

Cheers
Fletch

Note: I have plenty other investments, equities, bonds, cash etc. So only looking at property yes/no rather than alternatives, if anyone has any help. Thanks

Edited June 8, 2015 by fletchsmile

[sometimewoodworker]

You are going to find getting a mortgage a very significant challenge. I know of only one broker and one building society that we're offering mortgages 2 years ago and the deposit had to be in excess of 40%

No building society offered mortgages directly.

[Chicken George]

Can be difficult if you have no UK address. I was turned down as they said they did not want to chase me up as I lived aboard if there was a payment problem. This was after they had made the offer too!

[bobbymack]

As others have mentioned you will likely need a significant deposit but you could buy on a "buy to let" mortgage and perhaps you could use one of your relatives addresses as your UK address? If you need help with a lawyer in Manchester, the firm I last worked for can help.

[Arkady]

I was offered a non-resident mortgage some years ago by a Jersey based bank that specialises in UK expat accounts. It emerged early on that this was not really a mortgage per se but a commercial loan. So the criteria for lending, deposit size etc were tougher and, of course, the interest rate was higher. I didn't proceed with the project, as I was only really toying with the idea anyway.

[rayongchelsea]

Bought the UK property for cash, then re- mortgaged it through a broker on a buy to let.

[NUUM]

and perhaps you could use one of your relatives addresses as your UK address? If you need help with a lawyer in Manchester, the firm I last worked for can help.

Seriously ? You don't think that might raise a red flag on the credit check part of the mortgage application...

[Pdavies99]

and perhaps you could use one of your relatives addresses as your UK address? If you need help with a lawyer in Manchester, the firm I last worked for can help.

Seriously ? You don't think that might raise a red flag on the credit check part of the mortgage application...

Like you say, it would NEVER get past the credit check.

[Pdavies99]

There are currently 7 lenders in the UK for clients in your situation. For example see:

http://www.telegraph.co.uk/finance/personalfinance/expat-money/10993002/New-mortgage-for-expats-buying-to-let-in-England-and-Wales.html

I should point out though that as a non resident UK property owner you are going to have many potential problems such as:

Property Management costs

Rent taxed as income

Regular Tenants

GOOD? Tenants

Unreliable correspondence

Solicitor / power of attorney costs etc

Good luck

[topt]

There are currently 7 lenders in the UK for clients in your situation. For example see:

http://www.telegraph.co.uk/finance/personalfinance/expat-money/10993002/New-mortgage-for-expats-buying-to-let-in-England-and-Wales.html

I should point out though that as a non resident UK property owner you are going to have many potential problems such as:

Property Management costs

Rent taxed as income

Regular Tenants

GOOD? Tenants

Unreliable correspondence

Solicitor / power of attorney costs etc

Good luck

They don't have to be "problems". Issues to be dealt with yes. Either find a good agent (another issue) or a family member who can do the job.

Not sure why correspondence should be unreliable in this day and age?

[bkk_mike]

I remortgaged my house in London while living in Thailand a few years ago.

On the basis that it was the property I would be returning to (i.e. it would be my main home), I got a mortgage from the Lloyds (actually Cheltenham and Gloucester - which is, I believe, now part of the split-off TSB).

Admittedly, I had a job in Hong Kong that paid a decent income - and as it was a remortgage, I had a lot of equity in the property. It probably helped that as I already owned the house, they could do a credit search on my UK address also...

i.e. It's definitely doable - so long as it's a house you're intending to return to live in within the next 5 years (which was my case - as I returned to the UK so the kids would be eligible for student loans). It might be slightly dependant on your source of income (I'm an employee of a US multinational which probably helped).

[rayongchelsea]

There are currently 7 lenders in the UK for clients in your situation. For example see:

http://www.telegraph.co.uk/finance/personalfinance/expat-money/10993002/New-mortgage-for-expats-buying-to-let-in-England-and-Wales.html

I should point out though that as a non resident UK property owner you are going to have many potential problems such as:

Property Management costs

Rent taxed as income

Regular Tenants

GOOD? Tenants

Unreliable correspondence

Solicitor / power of attorney costs etc

Good luck

I take your point.

Find yourself a good agent, none of these will be a problem.

Property management costs 10-15% plus VAT.

Rental income. Will need to do a yearly return. Easy can do yourself. Need to do a non residence return as well.

Depending where..a good agent, good tenants. Target rent a little below market rates - tenants tend to stay.

Email.

My only issue is that if they withdraw the individual personal allowances for non residence the investment is less viable, plus capital gains is also now assessable.