# Remortgage of UK property while living in the US



## Steve71 (Sep 25, 2008)

I have a mortgage on a house in the UK, and I currently live and work in the US (I get paid in US dollars).

I am trying to sell my house in the UK as the mortgage is too expensive for me to afford in conjuntion with my living expenses here. The market is obviously pretty bad quite now, so the sale could take some time.

I have around £60-80k equity in the property (around 50% of its value), and I would like to remortgage to get a better interest rate, release some equity and increase the loan term (to further lower the monthly payments).

However, the mortgage companies I have contacted in the UK require proof of income in the UK ... so US playslips are no good.

Has anyone else been in this situation, or know of a solution?

Thanks!


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## twostep (Apr 3, 2008)

You will not be able to get a US bank to cover a UK property. Can you rent the house out to recoup some of the UK mortgage? Crazy scenario - cash loan in US, pay lump sum on UK mortgage depending on the UK loan terms. Realistic scenario - put it on the market under value and salvage your dignity.


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## Steve71 (Sep 25, 2008)

Thanks for the reply.

I have been renting it out, but the rent doesn't quite cover the mortgage. Plus it's difficult to rent it out while trying to sell it.

I'm in the green card process here at the moment. If I got the green card approval, I did consider I could return to the UK, get a job, remortgage the house, and then return to the US.

I think your realistic scenario is probably the way to go, with the exception of salvaging my dignity (I lost that irredeemably in an unfortunate incident in Flares nightclub, Warrington in 2001).


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## Fatbrit (May 8, 2008)

Steve71 said:


> I'm in the green card process here at the moment. If I got the green card approval, I did consider I could return to the UK, get a job, remortgage the house, and then return to the US.


Understand FULLY issues of abandoning permanent residency and also effect on your naturalization time card before doing this. Also, look histirically how long the UK took to recover during the last housing slump. 

Any property will sell if it's priced right BTW.


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## kaz101 (Nov 29, 2007)

Hi Steve, 

I'm in Australia but I'm having a similar issue with the UK banks. We have several properties in the UK and I'm trying to re-mortgage one of them. So far we've found that no-one will consider us since we have no intention of going back and are self employed. 

If I hear of anything that could apply to you too I'll let you know....

Regards,
Karen


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## synthia (Apr 18, 2007)

Even if you were there, money has gotten really tight everywhere, so it might not be possible to get a mortgage anyway. You can't borrow money that isn't there.


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## RICHNTRISH (Jun 4, 2008)

Steve71 said:


> I have a mortgage on a house in the UK, and I currently live and work in the US (I get paid in US dollars).
> 
> I am trying to sell my house in the UK as the mortgage is too expensive for me to afford in conjuntion with my living expenses here. The market is obviously pretty bad quite now, so the sale could take some time.
> 
> ...


Have you tried applying for a Self Certification mortgage , 25% deposit required but you dont generally have to prove your income however the interest rate is normally a little higher ,1-2%, pretty much the same as a buy to let mortgage which would be another option , you just need to get the rental covering the outgoings.


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## twostep (Apr 3, 2008)

kaz101 said:


> Hi Steve,
> 
> I'm in Australia but I'm having a similar issue with the UK banks. We have several properties in the UK and I'm trying to re-mortgage one of them. So far we've found that no-one will consider us since we have no intention of going back and are self employed.
> 
> ...


The days of socalled "low-doc" mortgages are almost over.


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## twostep (Apr 3, 2008)

Steve71 said:


> Thanks for the reply.
> 
> I have been renting it out, but the rent doesn't quite cover the mortgage. Plus it's difficult to rent it out while trying to sell it.
> 
> ...


It does hurt. I know. It took five years to finish the ultimate house. Took one week to sell and close but at a price:>( The decision was based on money alone. Mortgage, upkeep, insurance, two households, not. It was straight math. 

Time to get into mischief again. 2001 has been a while.


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## Steve71 (Sep 25, 2008)

Thanks for the replies, everyone.

My situation isn't too horrible, as I do have the equity, and I can just about afford to keeo paying the mortgage. It's just remortgaging with a better interest rate (and longer loan term) would make it comfortable. Ideally I'd just sell it as I don't need the 'stress' :-o

FOR SALE: 2 bedroom house in South Manchester, near the fashionable suburb of Didsbury (as seen in Cold Feet) - OO 135k.

I'll check out the sef-certification and buy-to-let mortgages too ... just in case. Thanks again!


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## kaz101 (Nov 29, 2007)

Hi Steve, 

We had 3 brokers on it in the UK but haven't come up with anything. They didn't like the fact that we are self employed, and even though we have 25% equity in the property some lenders didn't feel that was enough since the rental wasn't enough for what they required. 

If you haven't already done so try the Woolwich. They were the ones that said the rental wasn't enough but if you have equity then they might work out for you. 

Regards,
Karen


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## synthia (Apr 18, 2007)

Another issue is what is happening to the equity in either of your properties. People in the US are being asked for 20% down, or 20% equity to remortgage, and so many are finding that not only are the gains they had made on the property gone, but the money they put into the house is also disappearing. I imagine the same thing is happening in the UK.

If you possibly can, you wil probably be better off hanging on to the properties if at all possible.


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