As a result of a Mortgage Market Review in the UK a new set of regulations came into effect on the 26 April 2014. These regulations are likely to see the number of mortgages getting approved in the UK which has already fallen to reduce further still, there has already been a significant dip in May following the introduction of the new regulations in April.
The rules are centred around affordability checks, stress testing and mortgage advice and include much more interaction regarding not only income, but also personal spending habits. One area which may lead to a smaller mortgage approval is where individuals are making regular pension contributions. It is anticipated that the interview stage can now take up to three hours.
Since the property market went into decline in 2007 expatriates and foreign nationals were considered high risk and less likely to get lending and now with the new regulations the process for an international mortgage is much more time consuming and complex. One area where it is more complex when you live abroad is that you must have a UK registered solicitor to confirm that all the documentation you are producing are true copies of the originals.
UK expats looking to buy property back home is high right now due to confidence in the property market in the UK and a relatively weak sterling which is making property approximately 25% cheaper to buy than it was in 2007. Most of these however are looking to invest in buy to let properties which will not be affected by the new regulations.