If we sell our overseas property and return to Britain, should we rent or buy?

Q My wife and I are considering leaving the EU to return to the UK. We currently own a property here that we are looking to sell and are wondering if we should rent for a few months when we get back or look to buy right away? I know lenders have dramatically reduced the mortgages they offer. So our thinking is that renting for a few months while we work on improving our credit ratings and the income flows through our UK bank accounts might be a more viable option. option.WC

A I think you and your wife should rent until you have sold your current property in Europe. You are right in thinking that it would be a good idea to build up your credit history - which includes registering to vote - and have proof of regular income in the UK before applying for a mortgage. But it's also unlikely - but not impossible - that you'll be considered for a mortgage if you're both starting new jobs.

Another reason to wait until your property in the EU is sold is that you will avoid paying the higher rate of stamp duty property tax when buying your home in the UK. Because it would be a second property, instead of paying 0% in SDLT on the first £250,000 of the purchase price, this means you would pay 3% on the first £250,000 and then 8% (instead of 5% ) on the amount between £250,000 and £925,000. Different taxes apply in Scotland and Wales. Assuming its value has increased, selling your current property will earn you money for the amount you will need to put down as a down payment, which should be at least 10% of the value of the property you plan to buy.