Expat BTL or standard BTL?

by Readers Question

9:26 AM, 1st September 2016
About 2 years ago

Expat BTL or standard BTL?

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Expat BTL or standard BTL?

I have found this website very helpful and I am now in a situation where my BTL mortgage is approaching the end of fixed term very soon, I am looking to remortgage to another lender with a better rate. a or b

The tricky thing is that I now get an opportunity to work abroad and I would consider taking the opportunity in a few months time. I talked to my mortgage advisor and told him my situation. He said as long as I am currently reside in the UK I can remortgage to standard BTL. Even if I do decide to go abroad eventually, I am not obliged to tell the lender as long as the mortgage is paid.

This all sound very reasonable to me. However, I read from another thread, which seem to suggest that I have to get an expat BTL otherwise I may “involve Nondisclosure of information that would materially affect the lenders decision.” https://www.property118.com/emigrating-remortgaging-consent-let/67899/

Maybe I have misunderstood the thread above, but can some one advise :

1. Whether I should take expat BTL or standard BTL in my current situation?
2. If I take standard BTL now, and I do decide to go and work abroad for a while later, do I have to tell my lender at that time?

What implication it will be?

I am pretty confident that I will be able to afford the mortgage even if tenants move out and no rental income can be used to cover the mortgage.

Karen



Comments

Neil Patterson

9:36 AM, 1st September 2016
About 2 years ago

Hi Karen,

In the scenario you mention the mortgage was on a main residence and the debate was about consent to let. Eg, the reader may have been applying for a mortgage that they knew was not going to be appropriate for a rental property.

You can't really apply for an Expat mortgage at the moment as you are not Expat and have not yet made the decision to move abroad. If you did decide to or had moved abroad during the application process then yes you should tell the lender.

Currently lenders do not restrict where borrowers on BTL live after completion of the mortgage, but you do obviously need to make sure you are not deliberately misrepresenting an application.

Therefore your broker with all the current information and Fact Find to hand is best placed to make a decision on the application and as they will be regulated and insured you should take their qualified advice. However if you are unsure it is always best to ask the lender.

Mark Alexander

9:55 AM, 1st September 2016
About 2 years ago

Hi Karen

I concur with the advice your broker has provided and also what Neil Patterson has said

The other thread that's confusing you is a "red herring" as the situation is different. That borrower had a homeowner residential mortgage.

I moved abroad earlier this year and notified all of my mortgage lenders of my new address. There were no problems whatsoever.

I do recommend you to remortgage before you leave though as availability of mortgage products will reduce once you become an expat.

John Constant

10:39 AM, 1st September 2016
About 2 years ago

Karen, honesty is always the best policy. Tell your broker and lender via email upfront that you may be moving abroad for a period of time. Ensure your broker mentions this to the lender as well (belt and braces) when they are carrying out their research.
At least then you know that you have done everything in your power to ensure that you have the correct mortgage. Furthermore, remind the lender when you eventually go, and give them your forwarding address.
In all situations - never try to hide anything from the lender. Make sure that you have the right product to suit your circumstances.

Fox Davidson

21:25 PM, 3rd September 2016
About 2 years ago

If refinancing a main residence to a buy to let and moving abroad then you will find limited options. Most lenders will ensure you are buying another property and most will want that to be in the UK. As you are moving abroad you should declare that and standard lenders such as Santander, BM, TMW etc won't lend. You need an independent broker that works across the market and has first hand expat BTL experience.


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