No Credit Check Mortgage
I am an American national who will be moving to London in the next few months
with a three year work visa. Does anyone have experience trying to get a
mortgage for a relatively inexpensive East End flat?
There's an automatic mortgage calculator on a site for Alliance and Leicester,
which makes it seem like I would be able to arrange for mortgage payments of
500 pounds or less a week with my down payment for a flat in the 50- 75,000
pound range. Will a bank really make a deal like that, or is it just a mindless
applet? (I'm a first-time buyer, but that seems particularly low.) How much
insurance might you end up paying for someplace like that?
Also, I will have a steady income, but I have no credit history whatsoever in
the UK. WIll that prevent me from getting a mortgage at all?
As I recall the criteria in advancing money to buy a house is that the
amount advanced should not be more than 3 times the applicants income
and that the monthly repayments should not exceed a quarter of
disposable income (perhaps a more recent first time buyer could
confirm).
In your posting you do not mention the amount of deposit but £500 a week
is HIGH for the normal 25 year mortgage so I assume it is for a shorter
period!!
There are, in general, 2 different types of mortgage offered in the UK
by the Building Societies and banks. A straight repayment mortgage where
you pay an amount calculated to pay the capital and interest in equal
instalments over the period and an endowment mortgage where you pay
interest only plus the premiums on an endowment Insurance policy which,
upon maturity, repays the Capital.
The repayment mortgage is easy to calculate from tables, the endowment
one, which a lot of banks try to "sell" because of commission
arrangements a bit more difficult due to unknown factors like your age
and health (BTW don't ask me for a quote I don't sell them
Subject to the Income criteria and valuation of the property I would
imagine, especially at the moment, you would not have a problem with 3
years residence although there might be other conditions imposed.
Just shop around its a very competitive market.