Immigrants will be able to benefit from the new Help to Buy scheme because the Government is powerless to impose a ban on European Union nationals. As a result, any couple or single person born abroad in any country from Spain to Romania could use taxpayers’ money to get onto the housing ladder. But, in reality, the strict criteria imposed by mortgage lenders taking part in the controversial scheme mean only those with a perfect credit history and proof of UK address will actually be able to benefit. Mortgage lenders have a long list of hurdles which first-time buyers and existing homeowners must jump over in order to qualify for a mortgage - and recent immigrants will not qualify. These rules will still apply to the Help to Buy scheme when it launches in January, which will only be open to UK residents. For example, you have to be able to able to provide proof of income, previous UK home addresses and have a credit history in this country which the lender can verify. A lender such as Virgin Money wants to be able to see at least three years’ of previous addresses in this country. Mortgage lenders have a long list of hurdles which first-time buyers and existing homeowners must jump over in order to qualify for a mortgage - and recent immigrants will not qualify Mortgage lenders have a long list of hurdles which first-time buyers and existing homeowners must jump over in order to qualify for a mortgage - and recent immigrants will not qualify Last night, one banking source said: ‘Even you have an awesome credit rating in Spain, you need one in the UK to get a mortgage here.’ Typically a bank will ask for around six months’ proof of income if you are employed, or around two years’ of business accounts if you are self-employed. You must have an excellent credit rating in the UK, such as being able to prove that you have kept up with credit card payments for a year or not fallen behind with your mobile phone bill. David Hollingworth, from the mortgage broker London & Country, said: ‘Lenders are not going to lend to somebody who they cannot track at all, no matter where you are from. ‘Many want you to be on the electoral roll, and you must have a credit track record in the UK, such as paying off a credit card for years. ‘If you do not have a credit history at all, you might be a potentially brilliant customer but they will not lend to you.’ Additional rules, imposed by the Treasury, mean you cannot use the Help to Buy scheme if you already own another property, even if it is in a different country.
Posted on: Wed, 24 Jul 2013 07:13:52 +0000
Trending Topics
Recently Viewed Topics
© 2015