Overseas and need to switch from Resi to Buy to Let
In a nutshell, I left the UK to live overseas a few months back. I have a pot of money I’m living off and then in a couple of years I will sell 1 or 2 of my properties to pay off the others and live off that income (with house prices increasing, I wish to delay this).
My question is that I should have told my lender I had moved out my residential home when I left, but just did not get round to it. I now need to tell the lender I wish to switch to a buy to let to increase my cash flow and want to extend the mortgage term.
Do you think if I speak to the lender over the phone they will increase the mortgage term (which will reduce my monthly payments) while switching to the buy to let or am I opening a Can of worms telling the lender which yes I know legally I should have?
They may just switch me to a buy to let deal (at a cost) and wish to keep the mortgage term as currently is thereby increasing my monthly payments, which is the complete opposite of what I’m trying to achieve.
A consent to let is only 12 months so not really what I want as am not planning to return is honesty the best policy?
Or will it just cost me?
Paul
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Member Since August 2015 - Comments: 27
11:04 AM, 17th February 2016, About 10 years ago
Does anyone know how lenders would view the borrower already being abroad and not having told them of this move?
What is the usual situation with regards to B2L mortgages and the borrower having moved abroad but not having told the lender? Once the lender is informed of this move abroad, will they change mortgage criteria, rates, or even call in the loan?
Member Since March 2015 - Comments: 1969 - Articles: 1
11:11 AM, 17th February 2016, About 10 years ago
Reply to the comment left by “Man on Stilts” at “17/02/2016 – 11:04“:
I would tell them you want to switch to B2L and if they don’t ask, you have no reason to discuss (do check small print, though).
Member Since August 2015 - Comments: 27
11:17 AM, 17th February 2016, About 10 years ago
Reply to the comment left by “Luke P” at “17/02/2016 – 11:11“:
All the mortgages are already on B2L and have been for years with no missed payments ever.
Would the lender get nervous If they found out the borrower no longer resides in the UK?
Comments: 297 - Articles: 1
11:43 AM, 17th February 2016, About 10 years ago
I imagine Mark Alexander will have researched this in anticipation of his move to Malta.
Member Since March 2015 - Comments: 1969 - Articles: 1
11:46 AM, 17th February 2016, About 10 years ago
Reply to the comment left by “Man on Stilts” at “17/02/2016 – 11:17“:
I reckon if you’re paying they’d have no reason to question if they should be nervous.
Member Since August 2015 - Comments: 27
11:51 AM, 17th February 2016, About 10 years ago
Reply to the comment left by “Jerry Jones” at “17/02/2016 – 11:43“:
Mark, can you please comment on this scenario?
Member Since October 2013 - Comments: 31
8:50 AM, 18th February 2016, About 10 years ago
Not sure about now, but it use to be the case that if you applied for a mortgage as a non-resident it would have to be an ExPat mortgage and therefore on a higher rate, so if you told a lender that you was now living abroad i wonder if the above would apply.
Member Since May 2015 - Comments: 17
9:41 PM, 19th February 2016, About 10 years ago
Hi Paul
If your lender isn’t being helpful and won’t allow a simple switch please get in touch and we can help you refinance. We have a British expat specialist who will get you the best deal possible.
Click the link below and we can have a brief chat to determine how we can help.
https://www.property118.com/member/?id=7077