Moving to Aus, residence to BTL timing issue

[AliG]

Hi,

Hopefully I'm missing an obvious solution but I'm trying to figure out best route converting my current UK residential mortgage into a buy to let at the point I move to Aus, releasing some equity to help finance a future purchase in Aus:

BTL mortgage application while in the UK - This would be my preference but from what I can see from lending criteria they want to see proof of income (which I will have for as long as I keep my UK job but won't have anything lined up in Aus) but also I'll need proof of me living at a different address (for a Buy to let application) of proof of where i am moving to (let to Buy application). I can perhaps stay at a relatives house temporarily but certainly wouldn't have a lease or own residential mortgage anywhere (which seems to be typical criteria as they dont want people taking BTL mortgage and then living in the same property).

BTL mortgage application having arrived in Aus - If I wait until I am abroad and then approach say HSBC for a UK BTL then they need to see proof of income (which I won't have for a while). Meanwhile I can't let uk property under a residential mortgage but have to keep paying. Also - will i need proof of owning another property (in Aus) to facilitate a UK BTL mortgage - As I need the UK BTL mortgage to release some equity from the UK property to facilitate purchase of a property in Aus: Chicken, meet egg!

Consent to Let - This is viable initially (as long as current mortgage company doesn't insist of seeing proof of a job lined up abroad, which I won't have): I'd obtain consent to let initially and then reapply for a BTL from Aus once I have a job and income history. but I could still come a cropper with the aforementioned chicken and egg issue... Consent to let lasts 2 years with HSBC and then I could be in trouble...

Ideally I'd move out of current UK home in the month before travel (and stay with relatives), get a 5 year BTL mortgage (while still in the UK) and let the property before flying off to Aus.

Hmm - apologies for rambling post - maybe i should just chat to a broker!

[Marisawright]

Your first option should be to approach your existing lender and see if they will convert your existing loan.  If they agree, you'll pay a small fee and then you just live with that loan for the long term.

Otherwise you may be stuck, because most banks won't give a Buy to Let mortgage to someone who lives overseas.  Those that do, will charge you much higher fees and interest than usual which will likely make it uneconomic.   

[AliG]

Just now, Marisawright said:

Your first option should be to approach your existing lender and see if they will convert your existing loan.  If they agree, you'll pay a small fee and then you just live with that loan for the long term.

Otherwise you may be stuck, because most banks won't give a Buy to Let mortgage to someone who lives overseas.  Those that do, will charge you much higher fees and interest than usual which will likely make it uneconomic.   

HSBC looks like a viable option for overseas applications https://www.hsbc.co.uk/mortgages/non-uk-residents/ and rates are v. similar to regular UK BTL (but I'm at early stages of research...).

HSBC are my current lender... so as you say, i should probably give them a buzz!

[Jon the Hat]

I think your challenge is going to be you are looking to release some equity as well.  They might convert your current mortgage, but they are unlikely to extend it.