Did you ever wonder about how to send money to Pakistan? In this article, we will try to analyze if it is possible for a Pakistani national to get a mortgage in England. We will also look at the requirements of getting a mortgage. But, before we throw light on the requirements, we deem it fit to define what a mortgage is.
Mortgage:- A mortgage is a loan from a bank or another financial institution that helps a borrower purchase home. Collateral for the mortgage is the purchased home itself which means that if the borrower does not make monthly payments regularly to the lender and defaults on the loan, the lender is legally authorized to sell the home or property and recover the borrowed amount.
A mortgage is primarily consisting of the principal amount and the interest rate the lender sets on the amount lent to the borrower.
The simple answer to whether a Pakistani national can mortgage in England is yes. And below is a quick go of the requirements for it. Most of the Pakistanis money transfers to Pakistan to support families back in their home country.
There are different banks and financial institutions which offer mortgage loans on different conditions but normally, these conditions will remain universal in nature.
One strict condition which all the borrowers have to meet is a regular source of income or a permanent job without which you will find it hard to get the loan whether you are a British national or a foreign national.
Income: – You will be required to provide documents that must support what you have told a money lender be it a bank or another financial institution.
- Self-employment or pensions and investments or regular income from work;
- Additional income such as overtime, bonuses and commission;
- Other income such as state benefits, rental income, details of online money transfer to Pakistan, trust funds and maintenance payments.
Debts and routine expenses: – The lender will also consider how your current and future payment liabilities could affect your ability to repay mortgage payments regularly without defaulting, including the following:
- Cards and overdrafts;
- Credit agreements and loans;
- Property commitments;
- Family commitments including maintenance; and
- Pension payments.
Your circumstances: – The lender will also take into consideration your current circumstances and how they may in the times ahead including the following:
- Change in the interest rates you pay;
- Retirement age you have planned;
- Addition of people such as children and relatives you will care for;
- Emergency and unforeseen occurrences such as illness, accidents, deaths and divorces etc.,; and
- Changes relating to your work life such as redundancy or relocation.
Control credit file:- You must also find out factors that could affect your credit file and check it before you apply for a mortgage loan. Cross-checking the details agencies hold is admissible even if you believe you have managed your money well all your life. You can approach a credit reference agency to ask for a report and credit scoring based on that report. Be mindful of the fact that there is no uniform rule for credit scoring, therefore, every agency may rate and assign your scores differently.
Following are the important points to consider while approaching a credit agency:
- Ask agencies to correct errors;
- Errors in your date of birth or your address could affect the amount you wish to borrow;
- Make sure you do not hold joint accounts or combined finances if you are no longer living with a former partner or flatmate;
- Make sure your finances are not still linked with utility bills, store cards or other commitments you are no longer responsible for;
- This can be easily done by placing a “disassociation request” with the concerned credit reference agency; and
- Keep in mind that your credit file is only one of the items a bank or another financial institution will thoroughly check when you apply for a mortgage.
Conclusion:- From all of the above we have clearly understood the basic requirements to apply for a mortgage and if you fulfil all of these requirements and conditions, you stand a fair chance to get the requested mortgage amount processed if you are a native resident or a Pakistan national who send money to Pakistan online on monthly basis.