Key Financial Considerations For Moving To The UK
04/03/2021
The UK is a vibrant and diverse island nation with a strong arts, culture and sports scene. It’s no surprise that roughly 600,000 people immigrate to the UK every year. If you’re looking to make a move to the UK, it’s important to research the financial aspects to prepare yourself fully before you make the leap.
Affordable house hunting
House prices in the UK aren’t cheap, and the market moves extremely quickly. Fortunately, however, choice is plentiful — whether you’re looking for a modern flat, a cottage, a classic Victorian terraced house, a detached or semi-detached property, a single-story bungalow, or a warehouse space, you’re bound to find the perfect UK property for you. The average property in the UK is valued at £245,443 with northeast and northwest regions being more affordable. For example, Shildon in County Durham is the cheapest town in the UK, with a £60,000 average property price.
Getting a mortgage
To purchase a home, you’ll likely need to apply for a mortgage: a long-term and low-interest loan secured on the property. The interest rate depends on the amount of your initial deposit, the time frame of the mortgage agreement, and the type of mortgage: interest only, fixed or variable. A fixed mortgage has a fixed interest rate for a set number of years before it changes to a variable rate. A variable interest rate fluctuates depending on inflation — an unpredictable option, but it can pay off if rates drop. And, with an interest only mortgage, you have to repay the interest in one lump sum at the end of the agreement. However, if you have a low or no credit rating, bad credit mortgages are also available, although they can be more complex than regular mortgages. An adverse credit mortgage broker can help you find a suitable lender that meets your specific needs.
UK immigration and visas
In the UK, there’s several visa schemes managed by the Home Office that allow access to the country. A general visitor visa, for example, is for those from outside of the EEA who want to live in the UK for leisure (a holiday or family visit, for example). There’s an £85 application fee. Alternatively, a business visitor visa is for people outside the EEA coming to the UK for work purposes. It lets you stay for up for six months and costs £84 per person. An immigration lawyer can advise you on how best to proceed for your situation.
Relocating to the UK is a large feat. It’s important to research the financial elements beforehand to make sure it’s the right decision for you.
