# Residential Mortgage back in UK



## Hayz6609 (Aug 17, 2010)

My mum will retire this year and as her house is part of her job will effectively become homeless so I want to buy a property for her to live in which would also be a base for me when I go back to the UK. I already have a house (ex-marital home) which I own outright and rent out each month.

I have had an offer accepted on a new build property and I had set up the mortgage and paid for the valuation with Halifax who I bank with back in the UK. At the last minute Halifax revoked their offer because my salary is paid in Singapore and is not transferred to the UK each month (which they knew upfront!). I am now going through the process with an Natwest via an expat mortgage broker but want to be aware of any potential complications so I'm prepared, which could include:

*Proof of deposit* - a large chunk of my desposit will come from my bonus which will be paid in April therefore I will be borrowing a large amount (£55,000) from my Dad until my bonus comes through (parents are divorced). He is very private and does not want to deal with solicitors etc and is also worried about gift tax implication (he has terminal cancer). My mum sold her flat last year and is willing to sign a gift letter and give proof of the sale - will this be adequate for the anti-money laundering criteria? Does it matter if circumstances change and the money uttimatley comes from my bonus and not a gift fro my mother?

*Occupation* - is it better to say that my mum will be living there or that it will be my UK base (both are true). How could this impact the mortgage offer? I heard that lenders don't ike property being unoccupied but am worried they'll think there is a vested interest with my mum living there if she is gifting some of the deposit?

*Other house* - my broker is concerned that Natwest wont like that I have another property even though it is rented out and owned outright, why is this? Will I end up having to show the build up of funds for paying this mortgage off when I bought my husband out?

*Other* - are there any other things that could jeopardise the mortgage going through with Natwest? What sort of evidence/ documents could they ask for?


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## Stevesolar (Dec 21, 2012)

Hi,
The main thing that banks are worried about is you not caring about the property enough to pay the mortgage and them having the worry of repossessing it and then trying to offload it.
A property that is someones prime residence gives them a big incentive to pay the mortgage - a 2nd property does not!
Being overseas and also having another UK property will obviously worry them for the above reasons.
In my opinion, they would be happier knowing that you are building up a UK property portfolio to rent out commercially towards your future UK retirement plans (certainly rather this than telling than that you intend letting your Mother stay there - for the above and the reasons that you gave).
Best of luck
Steve


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## Hayz6609 (Aug 17, 2010)

Thanks Steve,

If I said I was buying it to rent out then would I have to switch to a buy to let mortgage which has a much higher rate? In any case this will be my main residence, I have not set foot in my other house for 6 years and only keep it as an investment.


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## Stevesolar (Dec 21, 2012)

Hayz6609 said:


> Thanks Steve,
> 
> If I said I was buying it to rent out then would I have to switch to a buy to let mortgage which has a much higher rate? In any case this will be my main residence, I have not set foot in my other house for 6 years and only keep it as an investment.


Hi,
But dont forget - the bank will have access to your credit file and will therefore already know that you have another property - so you certainly need to be careful what you tell them.
It is certainly worth trying to convince them that this will be your main residence - but dont be surprised if they ask about the other house!
Best of luck
Steve


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