British nationals previously residing on Spain’s Costa del Sol & Costa Blanca face credit history issues on return to the UK through no fault of their own.
As thousands of British nationals flock back to the safer shores of the UK after Brexit takes hold with new regulations or due to other circumstances, according to many, they are facing a dilemma on return as they find their credit history has been wiped out.
Kelvin Kennedy was one of those after selling his 900.000 euro villa on the Costa Blanca.
After completing the sale of his Villa to a German family, Kennedy returned to his home town of Kidlington in Oxford.
When eventually back on British soil, he was shocked to find he couldn’t obtain any credit, despite having more than £500,000 in the bank.
He explained to Global247news his predicament as he said:
“Getting home was a relief, fortunately despite the pandemic, I obtained a quick sale, and at a good price, although Brexit was thrust upon us, Europeans from the likes of France and Germany viewed the property.
“I didn’t have to come home due to Brexit as I had lived in my Villa permanently for 7 years and had set myself up as ‘All Spanish’ – I had Spanish bank accounts and a Spanish mortgage, but I felt the time was right.
” Arriving back, I went to my local bank to open a simple current account as well as a deposit account to hold my funds from my house sale; I wanted to switch the funds from my Spanish bank account. I was denied as the bank told me I had no credit history.
“Shocked, I turned to Starling Bank, explained my circumstances and the funds I had available and thankfully they gave me an online current account; that was one relief, but matters were not over.
“I need to purchase a new home, a new car and many other items to set my new life up in the UK, and that’s where the real problems have risen.
” Despite having a large deposit available, obtaining a mortgage has been a complete nightmare, obtaining any finance has been the same, all because my credit history apparently only lasted 6 years in the UK – When I left, my credit score was 698, and now it was zero.
“Nobody will touch me in the finance department for large purchases despite having just over half a million in the bank.
“Thankfully, I did have what I did, I’ve now bought cash a far smaller home and cash for a small little runaround, but it’s not what I returned for,” he said.
Kelvin then explained what he now has to do; he said: ” I saw a financial advisor, and he said I had to start all over again as if I was a teenager. First, he advised me to open a small account with a clothing company at my new address; once I got on the electoral roll, I did; I was accepted with a £100 limit, hardly enough to purchase a decent shirt in the UK.
” It started my credit score off at least after a couple of on-time payments; next was to try and obtain a credit card, that he said would quickly in time rack up my score.
“All the normal suspects declined me, score too low, the more I applied and got rejected down came my score, until I was recommended a card operating as Vanquis.
“After speaking to them over the phone, they explained they are a card defined to assist you in building your credit score quickly; ok, the interest rate isn’t great, although I pay it off monthly anyway to boost my score and pay no interest.
“It’s useful too for the safety of online purchases, something I don’t get with my current account, but it’s doing the job well; I’m already up to a credit score of 320.”
Kelvin then went onto explain, “I had never really thought about it before, I never had any of this when I moved to Spain, I just walked in the bank and got what I needed, trust me its a lot tougher returning home.”
He then advised, “6 years sees your credit history wiped out however good it is, if like me you haven’t kept something going in the UK, I would advise doing so; it will save you a lot of hassle in the end. You will need a UK address, though, to receive the card.”