getting UK buy-to-let mortgage from Aus (existing property, remortgage)

[PeterJa]

Hi there,

I moved to Aus a couple of years ago and rented out my UK flat, which was on a fixed term mortgage.

The fixed term has expired and the bank is now having a hissy fit that I rented it out.

I am looking to get an expat buy to let mortgage, but for some reason lots of places (HSBC etc) advertise them but won’t give me one when they find out it’s an existing property and I’m in Australia.

Does anyone know the reason for this please? And most importantly, does anyone know a way to get a UK expat buy-to-let mortgage from Aus?

Thanks for any help,

PJ.

[DukeNinja]

Have you tried approaching a UK mortgage adviser? I'm sure you could get some free advice before committing to their paid services if you choose to do. On another note, you're extremely lucky they didn't find out earlier and cancel your mortgage out as it doesn't sound like you got a consent-to-let..

[Tulip1]

Agree with above. The lender quite rightly had a 'hissy fit' as it sounds like you didn't adhere to the terms and conditions of your residential mortgage (given on a property you will reside in). You are not allowed to rent it out without consent.

[chall5]

agree about Consent To Let, not surprised they weren't happy. There aren't many options, best advice is to see what your current lender will offer you. My understanding is that a lot of players have dropped out of this market in the last few years seriously limiting options. I'd agree with the advice given about talking to a UK mortagage advisor

[PeterJa]

agree about Consent To Let, not surprised they weren't happy.

 

* Please don't think I'm passing a comment or being rude to you here, because I'm not, I'm grateful for the reply.

 

The property is more than half paid off, and at the same time as I was renovating it at night after work and raising a family in it, the idiot "experts" at the bank were getting many billions in bailouts for being incompetent. Then when I rent it out while we're away, for 4 x the mortgage payment so there really is no risk, some wet behind the ears nob at the bank goes into anaphylactic shock as "it's buy to let!'. That was their response to everything, even when I said there is a very real chance I will be transferred back to the uk soon - "it's buy to let!".

 

These are the same people who willingly gave out NINJA loans, self certified mortgages that we all knew were based on lies (why else would you self certify), and now they are using this as an excuse for a hissy fit. I would have told them, but had been warned their attitude sucks when people go abroad and they generally pull the loan.

[MTut]

* Please don't think I'm passing a comment or being rude to you here, because I'm not, I'm grateful for the reply.

 

The property is more than half paid off, and at the same time as I was renovating it at night after work and raising a family in it, the idiot "experts" at the bank were getting many billions in bailouts for being incompetent. Then when I rent it out while we're away, for 4 x the mortgage payment so there really is no risk, some wet behind the ears nob at the bank goes into anaphylactic shock as "it's buy to let!'. That was their response to everything, even when I said there is a very real chance I will be transferred back to the uk soon - "it's buy to let!".

 

These are the same people who willingly gave out NINJA loans, self certified mortgages that we all knew were based on lies (why else would you self certify), and now they are using this as an excuse for a hissy fit. I would have told them, but had been warned their attitude sucks when people go abroad and they generally pull the loan.

 

I'm inclined to agree with you. The Consent to let sting by lenders is awful.

[Fisher1]

* Please don't think I'm passing a comment or being rude to you here, because I'm not, I'm grateful for the reply.

 

The property is more than half paid off, and at the same time as I was renovating it at night after work and raising a family in it, the idiot "experts" at the bank were getting many billions in bailouts for being incompetent. Then when I rent it out while we're away, for 4 x the mortgage payment so there really is no risk, some wet behind the ears nob at the bank goes into anaphylactic shock as "it's buy to let!'. That was their response to everything, even when I said there is a very real chance I will be transferred back to the uk soon - "it's buy to let!".

 

These are the same people who willingly gave out NINJA loans, self certified mortgages that we all knew were based on lies (why else would you self certify), and now they are using this as an excuse for a hissy fit. I would have told them, but had been warned their attitude sucks when people go abroad and they generally pull the loan.

 

You're right, lenders are a pain about moving abroad. We tried to get a mortgage on a small flat on the south coast before we moved back to the UK from Belgium, from the bank we had been with for twenty years, and into which I had had a monthly salary paid the whole time we were away. We had a deposit of 80% and wanted to borrow 30% of my annual salary. They rejected us out of hand. I wrote a really rude letter to the bank, pointing out all the above details, and they reconsidered, offering to lend us the money at twice the then current interest rate. Needless to say, we got the money elsewhere and told them to shove it. It seems that things haven't improved since then. I understand your frustration - at the time we were trying to borrow what was a paltry amount in the grand scheme of things. banks were lending huge amounts to London buyers on 'self cert'. Its absolutely maddening, but difficult to get round. If I were you I'd contact a mortgage broker asap. Good luck.

[Peachy]

* Please don't think I'm passing a comment or being rude to you here, because I'm not, I'm grateful for the reply.

 

The property is more than half paid off, and at the same time as I was renovating it at night after work and raising a family in it, the idiot "experts" at the bank were getting many billions in bailouts for being incompetent. Then when I rent it out while we're away, for 4 x the mortgage payment so there really is no risk, some wet behind the ears nob at the bank goes into anaphylactic shock as "it's buy to let!'. That was their response to everything, even when I said there is a very real chance I will be transferred back to the uk soon - "it's buy to let!".

 

These are the same people who willingly gave out NINJA loans, self certified mortgages that we all knew were based on lies (why else would you self certify), and now they are using this as an excuse for a hissy fit. I would have told them, but had been warned their attitude sucks when people go abroad and they generally pull the loan.

 

It's not really a 'hissy fit' though is it? We were in the same situation as you with regard to the value of the property, the renovation while living it in etc. We checked the mortgage terms prior to departure, quick call to bank, filled in 1 form and heard within 7 days that approved the consent to let. The mortgagor has lent you a considerable sum of money and complying with the terms of the loan is your obligation. It isn't a 'hissy fit' - you have breached the terms of your mortgage.

 

If it is an issue try a UK mortgage broker as others have said because they have a much wider range of lenders that they can tap into.

[DukeNinja]

Here you go: http://www.kentrelianceforintermediaries.co.uk/buy-to-let/ex-pat

[PeterJa]

The mortgagor has lent you a considerable sum of money and complying with the terms of the loan is your obligation. It isn't a 'hissy fit' - you have breached the terms of your mortgage.

 

You're hilarious, I wish I was so well behaved, I really do. Does the bank live up to its obligation to pass on interest rate reductions to you, give you good FX rates when you transfer money, and give you good pension, annuity and credit card protection advice? Errrr, no.

 

But in real life, the bank has lent me a tiny sum of money, less than 0.00001% of what they received in bailouts, and the interest rate is almost 10 x the bank of england base rate. Also, it's not really the bank lending the money is it? That died a long time ago... mortgages are packaged and sold so many times no one knows who owns what. Hence the credit crunch. And if the bank wanted to shut the mortgage down, this isn't one of the 120% mortgages they were giving out, the loan to value ratio is tiny.

 

All in all, they're having a hissy fit. It's about the only thing they're good at.

[Tulip1]

Peterjay, what's the biggest line of defence? You are trying hard to justify why you made a deliberate choice not to adhere to the terms and conditions of a residential mortgage. We know it was a choice rather than an oversight/error as you've said you were going to tell them but someone told you they pull the mortgage so you didn't bother. You seem to find the lenders actions terrible and yet you were happy to do business with them when you needed them. You are throwing all kinds of rubbish out about them in order to justify you're wrongdoing. Whatever you think of lenders, you did do wrong. People in glass houses shouldn't throw stones and the words pot and kettle come to mind.

[Fisher1]

You're hilarious, I wish I was so well behaved, I really do. Does the bank live up to its obligation to pass on interest rate reductions to you, give you good FX rates when you transfer money, and give you good pension, annuity and credit card protection advice? Errrr, no.

 

But in real life, the bank has lent me a tiny sum of money, less than 0.00001% of what they received in bailouts, and the interest rate is almost 10 x the bank of england base rate. Also, it's not really the bank lending the money is it? That died a long time ago... mortgages are packaged and sold so many times no one knows who owns what. Hence the credit crunch. And if the bank wanted to shut the mortgage down, this isn't one of the 120% mortgages they were giving out, the loan to value ratio is tiny.

 

All in all, they're having a hissy fit. It's about the only thing they're good at.

 

 

As I pointed out earlier, in real life, that's the way it is. It's a pain and I understand your frustration, but if you don't play by their rules, they pull the money. Unfortunately it's their money (even tiny bits of it) and they can do what they like with it. Outrageous behaviour of one kind and another by your lender doesn't alter the fact that they are still your lender and you are still the borrower. Which means they are allowed to get cross if you breach the terms of your agreement with them, however silly that may appear to you, the borrower. Go see a mortgage broker ... sooner rather than later.

 

P.S. I'm sure you meant no offence but calling someone who didn't land up in your situation 'hilarious' because they checked the terms of their contract and stuck to them could be seen as a bit rude.

Edited February 8, 2017 by Fisher1

[PeterJa]

Peterjay, what's the biggest line of defence? You are trying hard to justify why you made a deliberate choice not to adhere to the terms and conditions of a residential mortgage. We know it was a choice rather than an oversight/error as you've said you were going to tell them but someone told you they pull the mortgage so you didn't bother. You seem to find the lenders actions terrible and yet you were happy to do business with them when you needed them. You are throwing all kinds of rubbish out about them in order to justify you're wrongdoing. Whatever you think of lenders, you did do wrong. People in glass houses shouldn't throw stones and the words pot and kettle come to mind.

 

Lol, I think you’re the most obedient person I’ve ever known!

 

What I did was write a post asking why *expat banks* will give UK mortgages but not re-mortgages to people living in Australia (answer: it turns out there’s an ATO rule which makes it too difficult), and instead of thinking “oh I don’t know the answer” or “he’s written his reasons” you decided to be all twee and british and tell us how good you are.

 

But seeing as I’m a pot calling a kettle black and I’m living in a glass house, what are the “all kinds of rubbish out about them” that I’m throwing? Did I get it wrong about the billion pound bailouts, holding back on interest rate changes, cruddy annuity rates? The difference is, my actions affect only me and I’m quite happy with both the actions and the consequences - I'm living by the beach and someone is paying 4 x my mortgage to stay in my old flat! Banks and shrill brits complaining is just a really amusing bonus.

[PeterJa]

As I pointed out earlier, in real life, that's the way it is. It's a pain and I understand your frustration, but if you don't play by their rules, they pull the money. Unfortunately it's their money (even tiny bits of it) and they can do what they like with it. Outrageous behaviour of one kind and another by your lender doesn't alter the fact that they are still your lender and you are still the borrower. Which means they are allowed to get cross if you breach the terms of your agreement with them, however silly that may appear to you, the borrower. Go see a mortgage broker ... sooner rather than later.

 

P.S. I'm sure you meant no offence but calling someone who didn't land up in your situation 'hilarious' because they checked the terms of their contract and stuck to them could be seen as a bit rude.

 

To be honest, I wasn't trying to be polite. Just like the poster wasn't trying to answer my question.

 

No problem.. the re-mortgage is progressing well.

[Fisher1]

To be honest, I wasn't trying to be polite. Just like the poster wasn't trying to answer my question.

 

No problem.. the re-mortgage is progressing well.

 

All's well in the end then. curious ... Did you go with a mortgage broker in the end?

[Slean Wolfhead]

It's not really a 'hissy fit' though is it? We were in the same situation as you with regard to the value of the property, the renovation while living it in etc. We checked the mortgage terms prior to departure, quick call to bank, filled in 1 form and heard within 7 days that approved the consent to let.

 

Some mortgagors were really good and just ticked a box, totally unconcerned.

Others like Nationwide, who were a building society that became a bank and then got into trouble with their building society business, wanted around £3000 to change a mortgage and allow property rental.

Pure chancery for doing bugger all, but this was when they were trying to reduce mortgages because they'd given them out like confetti, so i'd take issue if anybody at that time was taking loan terms seriously, most of all the people who were giving them out..

 

We re-mortgaged with a building society that were quite happy for us to go abroad and live, but lots were not interested in BTL mortgages and we needed a broker to find one.

However it was well known even back in 2011 that subletting a residential mortgage could be a big risk for insurance validity, because the mortgagor has an ownership interest in the property and you may have invalidated the building insurance, putting their money at risk.