Buying a house in USA with UK mortgage?

[angel129 0]

We have just come back from visiting my family in the States and scouting out the place where we will be living. I own a home in the States but it is currently being rented out and we really don't want to disrupt this whilst we have a good renter in. Also this house is too small for us and our needs. We have seen and fallen in love with a house in the States but don't think we can get a US mortgage b/c my husband is British and so has no credit in the States and I have lived in England for the last 5 years so have not lived or worked in the US for those 5 years.

What have others done about buying a house in America? Are you able to get a mortgage in the UK for a house in the US? If so, do you have any pointers and who did you use for your mortgage provider? We also own a home in the UK which we currently live in but would like to rent this house out and get another mortgage for our US house.

Any advice?

[Mikkel 0]

I would definitely not suggest getting a sterling mortgage if the income that you're planning on paying it off with is paid to you in dollars. If your mortgage is denominated in a foreign currency then you're incredibly vulnerable to exchange rate fluctuations. This is definitely not the market to consider that course of action in.

[Kathryn41 3,205]

Duplicate threads merged and duplicate post removed

[Lansbury 19]

Appreciate this is before the economic woes of the past couple of years but -

When we purchased our US house in 2005 we were living in the UK and my wife (USC) had been there for 9 years. Wells Fargo gave us a mortgage based on her UK salary. We did it all online and they wanted all the ts crossed and is dotted but while it took time it was quite straightforward.

Like I said it was awhile ago but Wells Fargo have a London telephone number so nothing lost in asking.

[angel129 0]

Thanks for that info. My husband will continue to work in the UK and earn sterling so a UK mortgage would be our best bet with no credit to speak of in the US. When we saw the house we have fallen in love with in the US and realized it would cost us less than our current MUCH smaller house in the UK there was just no comparison.

I will give Wells Fargo a call.

[Captain Oates 910]

Thanks for that info. My husband will continue to work in the UK and earn sterling so a UK mortgage would be our best bet with no credit to speak of in the US. When we saw the house we have fallen in love with in the US and realized it would cost us less than our current MUCH smaller house in the UK there was just no comparison.

I will give Wells Fargo a call.

Let me echo the point about exchange rates - dont let anyone tell you they know what is going to happen next as the latest rate is the best guess of all the professionals in the world.

You could be immensely lucky and make a fortune - you could get wiped out. Best to play safe when it's your home, though perhaps a UK bank can lend in USD. They do all sorts of wonderful things nowadays and I am sure people who bought homes in Spain would have got Euro mortgages

Worth asking...

[angel129 0]

Just to say that so far we've had no luck with this. We went to a mortgage broker today and we were told that no UK mortgage lender will lend money for any home that is not in the UK. So we are trying Wel's Fargo in my home town in the States but evidently Barclays have US interests. Anyone know anything about this?

[TracyTN 237]

I just don't think what you're wanting to do (get a mortgage in the UK for a house in the US) is possible.

Can you not qualify for a US mortgage on your own? What have they told you when you tried?

[Captain Oates 910]

I just don't think what you're wanting to do (get a mortgage in the UK for a house in the US) is possible.

Can you not qualify for a US mortgage on your own? What have they told you when you tried?

Here is a quote about getting UK mortages to buy property in Spain

Seems that UK banks do lend on overseas property and they do it in the foreign currency too...

How about flicking through the florida property sites for Brits...

Several UK mortgage providers will lend funds of up to 80 per cent of the purchase price for second home purchase over, typically, a 15-year term.

Euro mortgages, which are tied to the rate set by the European Central Bank (ECB), currently lower than the Bank of England base rate, may seem an attractive option, and several UK lenders offer them. However, because of the volatility of the currency markets, a euro mortgage may not be the best option for many people, who cannot afford to lose heavily should the currency move against them.

http://www.buyassociation.co.uk/property/t...y-in-spain.html

[Lansbury 19]

Just to say that so far we've had no luck with this. We went to a mortgage broker today and we were told that no UK mortgage lender will lend money for any home that is not in the UK. So we are trying Wel's Fargo in my home town in the States but evidently Barclays have US interests. Anyone know anything about this?

Here are the details for Wells Fargo's London office

https://www.wellsfargo.com/com/focus/ipb_uk

[Captain Oates 910]

Just to say that so far we've had no luck with this. We went to a mortgage broker today and we were told that no UK mortgage lender will lend money for any home that is not in the UK. So we are trying Wel's Fargo in my home town in the States but evidently Barclays have US interests. Anyone know anything about this?

Here are the details for Wells Fargo's London office

https://www.wellsfargo.com/com/focus/ipb_uk

Good thinking Dave - more than one way to skin a cat (they are in the other room and can't hear me)

[Minya's wife 24]

The lack of "health' in the US housing market may preclude a foreign bank in lending to buy in the US.

[Captain Oates 910]

The lack of "health' in the US housing market may preclude a foreign bank in lending to buy in the US.

The housing mkt in the UK/US is similarly blighted so I am sure the lending criteria will be tough in either mkt with substantial deposits required etc

Lansbury's idea of using a US bank in the UK might be a goer as they will use UK credit ratings but have US recovery procedures available to them in the US if the borrower fails to pay - so that gives them some assurance - and they gain a new US client out of it

Certainly worth exploring - got to keep knocking on doors until one opens

Edited November 11, 2009 by saywhat

[Lansbury 19]

more than one way to skin a cat

I said that to my 5 year old grandson the other day. He of course repeated it at kindergarten class which was lost on the American humour.

[Captain Oates 910]

more than one way to skin a cat

I said that to my 5 year old grandson the other day. He of course repeated it at kindergarten class which was lost on the American humour.

Yes it's weird how that works - my favourite funny movies are American but most times these quirky Brit phrases don't work at all in the U.S. Especially 'Bob's your uncle - fanny's your aunt'.

I am still struggling with my UK cash deposits - at the NS&I, (national savings), some products are ok for expats and some are not - and some are tax free and some are not. Tax free doesn't help me as I will pay US tax on it and can't claim a credit. Yes these banking things are a nightmare. The Halifax allows me to keep my UK account but the vast majority of UK banks will not. The Halifax will allow me to not pay tax on my current account but can't stop deducting tax on my Internet account - it's all so weird and wonderful.

I would recommend new emigrants to check which UK banks will allow an expat to keep them open and get such an account before they leave.

Banks like sainsburys forced me to close my account

I don't know any MAINLAND UK bank who will open an account once the individual has emigrated - only NS&I who are now paying 4% for 1 year savings