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Want to build a financial footprint in the UK after moving from Brazil

I’m from Brazil, but I’ve lived in the UK for a few years and want to stay longer.

That’s why I started saving for home deposits, and I wouldn’t buy for a while, but I want to start arranging my finances. My main bank account belongs to a Brazilian bank and there is no significant record of credit or borrowing in the UK.

I just opened a basic bank account at a British bank, but my co-resident transferred part of my household to my name. What else can I do to get started creating a profile?

What counts my credit history in Brazil when I start applying for a mortgage here? Are there any other financial barriers that you may encounter when you hopefully build your life in the UK?

Is Brazil’s financial history (good or bad) considered by British banks?

Importantly, I have an indefinite vacation to stay in the UK, work full time at a UK based company, but co-own a small business in Brazil. – – Via MA, email

George Nixon, this is money, reply: I often hear so-called plight “Credit invisible”: The future homeowner refused the mortgage because he had no history of borrowing to speak.

These examples often lead to those who question the UK credit scoring system and wonder why they need to borrow money later to prove that they can borrow more.

“A low credit rating doesn’t necessarily mean you won’t be able to get a mortgage, but you may not be able to take advantage of more affordable interest rates,” he said. Dennis Hussey, Advisor to National Debtline..

Taking out a credit card isn’t everything, but it helps. This does not have to be accompanied by spending.

Simply remove your credit card and pay off your petrol and train fares in full each month to show a sustainable borrowing pattern.

And this situation is clearly exacerbated by new entrants to the country. Because they obviously don’t have the financial history to talk about.

Fortunately, you got off to a good start. A basic bank account is a special type of checking account that banks are legally required to provide to everyone, including immigrants who are resident in the United Kingdom.

They usually do not provide overdrafts, but they do provide a useful starting point for starting to build a financial history.

There are other easy ways to improve your score, such as registering on the electoral list, checking your credit file for errors, and if possible, removing your credit card and paying back in full each month.

Dennis Hassy, ​​Money Advice Trust

“Opening a UK bank account and paying your household bill in your own name is a good first step,” Hassy added.

“There are other easy ways to improve your score, such as registering on the electoral list, checking your credit file for errors, and if possible, removing your credit card and paying back in full each month.”

Your financial records from Brazil, or any other country you may have lived in, will not be considered, as you might have expected given your question.

This is both positive and negative. If you are a bad borrower in your home country, it does not hurt your outlook here, but the opposite is true if you have a good financial history.

“Your credit profile is based on information specifically related to financial management in the UK, so it does not include bank accounts held in other countries.” Trans Union’s Kelli Fielding, Said one of the “Big Three” UK Credit Inquiries.

Hussey added: .. “

Future borrowers should check their credit reports via Equifax, Experian, or TransUnion to make sure there are no errors that could undermine their chances.

Future borrowers should check their credit reports via Equifax, Experian, or TransUnion to make sure there are no errors that could undermine their chances.

Council taxes can be potentially problematic. For immigrants who do not know this, if they miss the Council Tax invoice and do not pay within 7 days of the reminder notification, the full-year invoice will be due immediately.

On the other hand, for strangers, UK residents (people who spend more than 183 days in the UK each year) usually have a UK-based income and a UK-based income for all income from abroad, such as overseas business. I will pay the tax.

You should always make sure your credit files are accurate and up-to-date, as any errors can cause problems with future credit applications, which can affect your credit rating.

You can request a copy of the statutory report for free, but the three largest companies, Equifax, Experian, and TransUnion, often charge a monthly fee for a more comprehensive service. The Check myfile website allows you to view all three at once and offers a 30-day free trial before you charge £ 14.99 per month.

UK residents who also have foreign income are obliged to disclose it to tax collectors

UK residents who also have foreign income are obliged to disclose it to tax collectors

If you have a problem with your credit report, like the default that shouldn’t be, you need to contact the lender.

When it comes to applying for a mortgage as an immigrant, there are a few things to keep in mind: RU Group Chartered Financial Planner Nick Onslow..

“Readers usually need to live in the UK for three years to qualify for a UK mortgage,” he said.

“Three years also allows lenders to build an address and credit history that can ensure informed decisions. Pay rent on time and have the form of monthly credit. Are all useful for any application.

“Readers have an indefinite vacation to stay in the UK, so many lenders look for 10 percent deposits instead of 25 percent if they didn’t have the right to stay.”

And, of course, because home prices are the highest ever, saving for deposits and having room somewhere is not an easy task. As a result, it is important to consider whether you can benefit from a scheme designed to assist first-time buyers in the real estate market.

Nick Onslow, RU Group Chartered Financial Planner

Nick Onslow, RU Group Chartered Financial Planner

Duty-free Isa is open to UK residents and will especially benefit from Isa for life. This account is open for people between the ages of 18 and 39 and can save up to £ 4,000 a year.

Both cash and stock and stock versions are available..

The most appetizing factor in it is the fact that the government replenishes deposits with 25%, up to £ 1,000 a year, “free” money. However, withdrawing money for any other purpose will result in a 25% penalty, at the expense of not only the bonus, but also some of your own savings.

Nick added: “Saving for deposits is so important that taking risks with that money on the stock market may not be very attractive, especially if you want to buy within five years.

“If you have a period of 5 years or more, you can consider Investing money in Isa A low-cost passive Vanguard Life Strategy Fund with a reassuring risk level.

If you plan to buy within the next five years, it’s best to keep it in cash so you don’t lose money due to stock market fluctuations.

In such situations, the best bet is to hunt The best savings account you can find, Even if prices remain close to record lows.

Nick added: “One option is to invest in premium bonds and expect big wins. They are 100% protected by the Treasury and can hold up to £ 50,000.

“You may not make a profit, but the current annual prize rate is 1%. All prizes are tax exempt and 24 people earn £ 1 million annually.

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Want to build a financial footprint in the UK after moving from Brazil

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