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New Covid provisions for EU Settlement applications have been published. They include Provisions allowing an absence of over 12 months for people with pre-settled status, a provision for a second absence of up to 12 months and for choosing to spend time out of the UK over Covid related issues

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Buying a house a moving back to Spain

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  • Buying a house a moving back to Spain

    Hi. We are a family , my husband has been selfemploy in uk for 6 yrs with good income, wehave the settle status and we are moving back to Spain in one month . We were thinking about buying a property before moving but the morgage advicer said that buying to rent is mostly for people who already own a property in uk. Lenders will not like that. Second thing she said is that the morgage will also be dificult to get if we are moving to Spain. We have savings and were thinking to only ask for 50% loan of the property value. Is it a bad idea to buy if moving to Spain? Thank you.

  • #2
    Originally posted by Prunus View Post
    Hi. We are a family , my husband has been selfemploy in uk for 6 yrs with good income, wehave the settle status and we are moving back to Spain in one month . We were thinking about buying a property before moving but the morgage advicer said that buying to rent is mostly for people who already own a property in uk. Lenders will not like that. Second thing she said is that the morgage will also be dificult to get if we are moving to Spain. We have savings and were thinking to only ask for 50% loan of the property value. Is it a bad idea to buy if moving to Spain? Thank you.
    Morning,

    Buy-to-let mortgages are generally for people who do own their home and are buying additional properties, although this isn't written in stone and each lender has their own criteria, which is also subject to change. Many people who move abroad let out their UK home rather than selling it, but this is when it was bought as a family home to live in in the first place.

    This is something we can't really advise on, since we are not mortgage nor financial advisors, and it all depends on finding a lender who is happy to lend under the circumstances, then looking at the interest rates they would charge, some lenders may be happy to offer a mortgage to anyone, knowing the loan is secured on the property, particularly with a substantial deposit creating instant equity, but they may also be the ones who charge extortionate rates.

    Even if you manage to secure a mortgage, you need to look at the wider picture. The UK property market varies wildly from one area to another. In many places, it can be said to have reached peak values and the COVID19 crisis can only push prices one way, and it's not up. You need to look very carefully at this, house prices cannot keep going up forever and the forthcoming recession could well see many properties losing quite a bit of value, particularly if job losses lead to repossessions. At the moment, nobody is getting evicted and no property is getting repossessed, this situation isn't going to last forever. If tenants can't afford to pay their rent, landlords are also likely to default on their mortgages, or else they may put their properties on the market at low prices to avoid this, similarly with owner occupiers struggling with their mortgage.

    A mortgage advisor/broker may not tell you this if they make a living from mortgages, but you need to bear this possibility in mind.

    I am the Site Manager and Webmaster, please refer to our Admin Team, Roles and Responsibilities. If you think we have helped in any way, please support us so we can keep helping others secure their status, it is now more important than ever as the deadline approaches.

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    • #3
      Thanks very much for your wise advise, we will leave it for better times.

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