My friend is moving to the uk and he wanted to know if before he left if he bought a property in australia. when he got to the uk after what ever the set period of time is. when he tried to get finance over there for a property. would he have to put his australian property on the loan application. etc for the asset and liability side of it? i figured yes. is there anything wrong with this. his idea was being that if he bought before he left it would be easier then trying to get finance for a ex pat / when he comes back to australia he’d then have to wait idk 1-2 years?
Cheers, Huilo
Hi Hullo
Yes he would be required to disclose the Australian property on an any application as an asset and the loan as a liability.
Most UK lenders won’t however accept the rent as income towards the servicing of his UK application.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Huilo,
Answer is No. But before people start accusing me of being dishonest, etc, please just ask the UK bankers.
My experience (ie. fact):
I was in the same position ie. buying London property in London. I put my Australian properties on the form with all the rental income and expenses. The UK mortgage manager told me to do another form without the information. So I cannot rely on rental income or expenses. This is also the experience of my other Australian friends here in London.What the mortgage manager looks at is your history of savings. My bank statements clearly showed significant monthly savings. That’s it – he gave me approval on the spot.
The same is also true the other way around. From London, I applied for mortgages with ANZ – The ANZ mortgage manager told me to re-fill another form to exclude London properties. However no property related income in UK is considered.
Applying Oz mortgage is actually very easy because all ANZ, Westpac, NAB and CBA have a branch here in London. Apart from the 9 hours time difference, the process is exactly the same like if you apply in Australia.So what I did, I emailed all the mortgage managers from 4 banks, gave them bank statements, payslips, rental history, etc and asked them to give me the lowest rates. ANZ was best, so I went with them. Trust me, if you have your finances in order they are very helpful.
Hope this helps,
Cattleya
Not here to sell anything, just to learn the ropes of property investing and share knowledge with other property investors on this site.Cattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
As a Ex UK Banker I have to disagree with Cattleya.
I also have a number of close friends high up in Credit these days with a couple of the bigger Banking lenders and discussed it over a beer with them at Xmas. There answer was YES it had to be disclosed and then upto us on how we assess it.
As far as applying for an Expat loan that may have been the case some years nowadays it is a totally different story (Refer to Dean Collins post).
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Bank staff are often involved with deception, or fraud. Just make sure you try to cover yourself by getting evidence in case this non disclosure blows up.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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