Is the mortgage market turbulence getting you down? Have you got a mortgage-related question you need answering? Email in, and we will get one of our experts to reply. Nick Mendes, mortgage technical manager at John Charcol, has given his advice to a reader below. If you have a question for our experts, email us at [email protected].
Question: We are a retired couple living in Cannes, France. We sold our home in north London 12 years ago but now want to move back to the UK. What are our options for buying a property? Can we still get a mortgage, or would we need to fund the purchase entirely with cash?
Answer: It is very common for British retirees who have spent years abroad to reach a stage where they want to return home. Sometimes it is about being closer to family, sometimes about accessing the UK healthcare system and sometimes simply the feeling that life is shifting into a new chapter.
Whatever the reason, the good news is that moving back and buying a property here is entirely possible.
The route you take will depend on whether you want to arrange finance while still living in France or once you are physically back in the UK.
Most mainstream banks will not offer a standard residential mortgage to someone who is still resident overseas.
They typically require UK residency, a UK credit footprint and UK-based income, which means many expats find high street options very limited before they return.
However, that does not mean mortgages are off the table. Several building societies and smaller lenders will consider expat and returning expat borrowers, and France is one of the easier countries in terms of lender acceptance.
These lenders tend to take a more manual approach and are comfortable looking at pension documentation, foreign income and currency movements in more detail.
The difference in lender choice before and after your return is noticeable. Once you are back in the UK and have re-established a UK address history, the pool of lenders widens considerably.
Some will lend immediately once you can demonstrate where you are living. Others want to see a short period of renewed credit activity in the UK, such as using a UK bank account or paying a household bill.
By that point, the application becomes much closer to a standard residential mortgage, and that often means stronger rates and more flexibility.
As retirees your borrowing power will be assessed almost entirely on your retirement income. This includes state pension, private or workplace pensions, annuities and, in some cases, investment or rental income.
Some lenders will take foreign pension income in full. Others will convert it into sterling and apply a buffer to account for currency fluctuations. Because your pension is in euros, this may reduce your lender options slightly, but it does not stop you securing a mortgage.
The key is presenting the income clearly and providing the right documentation, and that is where working with an experienced broker makes a real difference.
It is also worth remembering that the maximum mortgage term for retirees will vary from lender to lender. Some are comfortable lending well into later life if the income is strong and stable.
Others cap terms at a specific age. That can influence the size of loan available and the repayment structure. For some returning expats, interest only becomes a useful option because it keeps payments lower and can be covered entirely by pension income, although you would need a clear repayment strategy.
Buying in cash is another route that many returning expats choose. If you have the proceeds available from previous property sales or long-term investment growth, purchasing outright avoids the additional checks associated with foreign income and removes the need for lenders to consider residency or credit footprint issues.
Cash buying also avoids delays and gives you far more flexibility when negotiating on a property. Importantly, buying in cash does not close the door on borrowing. Once you are settled in the UK again, you can remortgage the property to release money for renovations or to supplement retirement income if needed.
If you do want or need a mortgage from the outset, preparation is essential. Lenders will want to see proof of your pensions, evidence of your current tax residency and clarity about your future UK residency position.
You will also need certified identification and a UK bank account. Some lenders will not issue a mortgage offer until you are physically in the UK, so timing your application around your travel plans is important.
Your next read
square PROPERTY AND MORTGAGES Big Read‘Not a happy place’: Retirement complex landlord cuts services and hikes fees
square PROPERTY AND MORTGAGES‘I couldn’t buy until I was 43’: Why more people get on property ladder in later life
square SAVING AND BANKINGHow I Manage My Money: Pensioner, on £1.9k a month, who wants a £20k state pension
square PENSIONS AND RETIREMENTFamilies could face 15 month delays to inherit pensions after Budget change
For someone in your position, returning to the UK and buying again is achievable. The decision you need to make first is whether you prefer to arrange the mortgage before your move or wait until you are back on UK soil.
The second step is working with a mortgage broker who understands the expat lending landscape, because the right lender for returning retirees is rarely the obvious high street name.
Once you choose the route that fits your circumstances, the process becomes far more straightforward and your transition back to the UK can be managed smoothly and with confidence.
Hence then, the article about we re moving back to the uk from france for retirement can we get a mortgage was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( We’re moving back to the UK from France for retirement. Can we get a mortgage? )
Also on site :
- Iranian Foreign Minister spokesperson in exclusive interview discusses cause of the war and Iran’s stance
- Iraq coach says World Cup can help ‘change perception’ of country
- Religious Cult Responsible For Horrific Child Sex Abuse Is The Basis Of Netflix’s ‘Trust Me: The False Prophet’