Emigrating, Remortgaging and Consent to Let

by Readers Question

4 years ago

Emigrating, Remortgaging and Consent to Let

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Emigrating, Remortgaging and Consent to Let

I am currently in the process of emigrating to Australia (2-3 months until D-day). Rather than sell up, I would like to rent my current property out, just in case things don’t work out and I decide to come back in a couple of years.

I have approximately 80% LTV and am currently paying the Mortgage Variable Rate (Residential) of my current mortgage provider of 5.49% and would like to reduce this as much as possible. I understand that I may apply for a Consent to Let which will increase the rate to 5.69%.

My questions are:

Would I be able to remortgage with another mortgage provider on a much lower interest rate then apply for Consent to Let once the remortgage is in place (i.e within a week or so)?

Would the new provider see this as me trying to dodge a Buy To Let mortgage, of which there is very little availability (and not very good rates) for 80% LTV, and hence refuse my application for Consent to Let?

Many Thanks in Advance,
Martinfraud

Comments

Neil Patterson

4 years ago

Hi Martin,

Many people who move to live and work abroad do apply for consent to let, which is the correct advice with regards to informing your existing lender even if they increase the rate a fraction. Please remember the consent is normally for a finite period and they may still insist you repay your mortgage at a later date if you do not move back in.

The other option would be to apply for an expat BTL mortgage and dependent on circumstances there are options even at 80% LTV.

However any application for another residential mortgage or standard BTL would involve Nondisclosure of information that would materially affect the lenders decision.

Therefore this would be seen as mortgage fraud and put you in a much worse position for a lot longer so please do not be tempted.

Howard Reuben

4 years ago

Neil, your (spot on) advice doesn't get much simpler than that.

Martin, FULL disclosure is the ONLY way to proceed albeit that you may have to pay a higher rate if consent to let is the only arrangement that you;re eligible for. That may be a short term pain, but if anyone was to be caught carrying out mortgage fraud then that is indeed a much longer painful period.

So, borrowers in your current situation have a few options.

1) sell. But you have said you would rather not do that.

2) consent to let - and as Neil says, this arrangement is a temporary and (possibly) renewable arrangement so annual contact with your lender would be required

or

3) remortgage to a BTL mortgage - and the market does indeed offer expat BTL mortgages with LTV's up to 80%LTV.

The 80% deals available (not everyone is eligible of course though) include;

3.94% 31/05/2016 Fixed GBP 80%
Mortgages Available: PURCHASE: Residential only. REMORTGAGE: Like for like and equity release on residential properties.
Repayment Options: Capital and Interest or Interest Only

4.44% 31/05/2019 Fixed GBP 80%
Mortgages Available: PURCHASE: Residential only. REMORTGAGE: Like for like and equity release on residential properties.
Repayment Options: Capital and Interest or Interest Only

Better rates and fees available for lower LTV's (as usual with any mortgage comparison of course).

However, as always, it all starts with a detailed Fact Find between you and a qualified and experienced Broker.

Hope this helps.

Howard

Martin Green

4 years ago

Thanks Neil and Howard, I appreciate your responses. Better to be safe than sorry!

Mark Alexander

4 years ago

Reply to the comment left by "Martin Green" at "20/08/2014 - 12:13":

Hi Martin

I just wanted to point out that Howard is a qualified and practising mortgage adviser and that if you want to contact him there is a contact form on his member profile page 🙂

I have referred several people over to Howard and had excellent feedback.
.

4 years ago

I have a residential mortgage and have had consent to let for four years, I have just had to sign something every year. The rate did increase but not a huge amount and was more than covered by the rent I received anyway.

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