Guest kerryspro Posted August 17, 2011 Share Posted August 17, 2011 I've had a mortgage for several years, and have had consent to let to rent out my flat to tenants for the last 3 years. I'm now thinking about moving to Australia - do I have to tell my lender? I've heard rumours that they are not happy about lending to expats in Aus (though I obviously already have my mortgage in place). Also, I currently have tenants, but in a few months time my friends are going to move into my flat for a while. Do I have to tell my mortgage provider who is staying there? Surely it's up to me where I live, and who lives in my flat as long as I still pay the mortgage?! Especially since I have permission to lease. My concern is that telling them anything these days opens up an opportunity for them to increase my mortgage rate (it's not currently fixed). Thanks! Link to comment Share on other sites More sharing options...
paisleylass Posted August 17, 2011 Share Posted August 17, 2011 As your mortgage has been in place for quite some time you should be fine, it seems to be new mortgages that are a problem. I also don't think it's an issue who is living there - while you have consent to let I think the lender is more concerned that the mortgage is being paid than who's in the property. Lucky you getting consent for so long, some lenders are great - wish I had a mortgage with RBS or Santander, they both sound like good 'uns. Too late now (... Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 17, 2011 Share Posted August 17, 2011 You need consent from a mortgage lender before you let out your property? Oops..... Link to comment Share on other sites More sharing options...
claireg Posted August 17, 2011 Share Posted August 17, 2011 We have our mortgage with HSBC. I told them we were renting our house out and would we need to change the mortgage. They started doing quotes for buy to let mortgages with higher interest rates and a set up fee of over £1000. But when I asked them do we legally have to change our mortgage she could not give me a straight answer and started waffling saying you should really if a permanent move but most people leave it alone as they may want to return. She then said I am always doing enquiries about buy to let but have never set one up! Anyway, we are on a tracker mortgage and our rate is low so we are not changing. We have a tenant who has signed the lease for 24 months. Hope this helps Claire Link to comment Share on other sites More sharing options...
Guest Posted August 17, 2011 Share Posted August 17, 2011 We have our mortgage with HSBC. I told them we were renting our house out and would we need to change the mortgage. They started doing quotes for buy to let mortgages with higher interest rates and a set up fee of over £1000. But when I asked them do we legally have to change our mortgage she could not give me a straight answer and started waffling saying you should really if a permanent move but most people leave it alone as they may want to return. She then said I am always doing enquiries about buy to let but have never set one up! Anyway, we are on a tracker mortgage and our rate is low so we are not changing. We have a tenant who has signed the lease for 24 months. Hope this helps Claire I am just curious if you told them you would be outside the UK. Have read many posts that say when people have been honest they have not been given consent to let! Sarah Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 17, 2011 Share Posted August 17, 2011 I've been letting my house for 2 years without telling the mortgage provider. To be honest, it's not until I read this thread I even knew I was meant to tell them..... Link to comment Share on other sites More sharing options...
claireg Posted August 17, 2011 Share Posted August 17, 2011 I am just curious if you told them you would be outside the UK. Have read many posts that say when people have been honest they have not been given consent to let!Sarah Yes, I had a meeting with them and told them we were emigrating to Australia. I was honest with them. They have not chased us up since this meeting which was over two months ago now. Perhaps they are not bothered as long as the mortgage is paid. Link to comment Share on other sites More sharing options...
Slean Wolfhead Posted August 24, 2011 Share Posted August 24, 2011 Running into the same issue.... We have a 50% fixed rate repayment mortgage with 100K equity in the property. We cannot find a lender to switch to BTL if we're going to Australia for a 2 year career break. It's bemusing Link to comment Share on other sites More sharing options...
2and3 Posted August 24, 2011 Share Posted August 24, 2011 I think its an insurance thing ?? If your house was to burn down the insurance/mortgage lender may not stump up the re-build costs or whatever costs - any excuse to get out of paying up and the fact you may not have told them you were out of the country or if they find out, they could use this against you ?? I remember reading something along those lines -If I find it I shall post it. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted August 24, 2011 Share Posted August 24, 2011 I think its an insurance thing ?? If your house was to burn down the insurance/mortgage lender may not stump up the re-build costs or whatever costs - any excuse to get out of paying up and the fact you may not have told them you were out of the country or if they find out, they could use this against you ?? I remember reading something along those lines -If I find it I shall post it. Not sure about that - it's possible I suppose if your lender also provides the insurance. I have specialist landlord insurance on mine and I've noted the mortgage holders interest so don't think it would be an issue. Daniel Link to comment Share on other sites More sharing options...
2and3 Posted August 24, 2011 Share Posted August 24, 2011 Found a bit of info if thats any good ?? Although its not the one I was thinking of.. http://forums.moneysavingexpert.com/showthread.php?t=3158236&highlight=australia Link to comment Share on other sites More sharing options...
rockola57 Posted August 24, 2011 Share Posted August 24, 2011 My ones just last week told them,after 3 yrs of being in OZ,that we are renting our house out !We have about 7 yrs to go out of 25 yrs.Well.the guy on the phone in the UK(RBS)knew his job,and bollicked her big time,saying this was a serious breach of trust,contract or whatever you wish to call it!Anyway,he said the Bank are within their rights to foreclose,and demand remaining payment forthwith,BUT:v_SPIN:he decided to get the situation in order,send us out amendment forms,and not penalise us financially.This was a good outcome,however,i reckon,in retrospect,it is probably better to inform them,what if there were a major fire or similar disaster?insurance etc!:policeman: Link to comment Share on other sites More sharing options...
sarab Posted August 24, 2011 Share Posted August 24, 2011 Glad i found this thread - i was wondering what to do as well, as I am not planning to sell up until the market picks up and it also gives me the option to return to the UK in the future. I was more wondering about correspondence addresses as I wouldn't want things like the mortgage statement being sent to the tenenats and them "accidentally" opening it! I am with Santander so maybe I'll be ok. HSBC are a nightmare I used to bank with them, all they are interested in is selling you things you don't need!! Link to comment Share on other sites More sharing options...
Slean Wolfhead Posted August 24, 2011 Share Posted August 24, 2011 I think its an insurance thing ?? If your house was to burn down the insurance/mortgage lender may not stump up the re-build costs or whatever costs - any excuse to get out of paying up and the fact you may not have told them you were out of the country or if they find out, they could use this against you ?? I remember reading something along those lines -If I find it I shall post it. Nope, the insurance thing will be covered by landlords insurance. It seems to be strictly if we say we're definitely leaving the country, they won't mortgage you. The rental will more than cover the mortgage payment (by 30% +) and there's 100,000 worth of equity in the property to cover a 2 year temporary period.....so a house sale would pay off any potential default. Can understand them being cautious....but not so restrictive. There is hardly any risk for them....they all just seem frozen like rabbits in headlights. Link to comment Share on other sites More sharing options...
bensdad Posted August 24, 2011 Share Posted August 24, 2011 The main problem is the mortgage rules, if you have a residential mortgage (normal one to us) you have to live in that property and you are not allowed more than one residential mortgage per person. If you want to let your property out you need to have a buy to let , if this is what you intend to do when you first purchase ie rent it out , our if you already have your mortgage in place it needs to be changed to a let to purchase mortgage. This happened to me in 2007, I already owned a house which I wanted to let out , and also buy another house to move into, so I was made to change my existing mortgage to a let to purchase mortgage which then allowed me to get another normal residential mortgage. It is not to be confused with a buy to let, all a load of b*llox to me, another way to make money out of you. Apparantly it is illegal to have to residental (standard) mortgages. I may well be wrong but that was what I was told by my mortgage broker at the time. Link to comment Share on other sites More sharing options...
paisleylass Posted August 24, 2011 Share Posted August 24, 2011 Let to buy mortgages only seem to apply when you are simultaneously buying another house to move into, unfortunately. Not much out there for emigrants really! I did post elsewhere that Barclays' buy to let mortgage is actually promoted as being suitable if you are moving abroad, which is a first. Big fees though ( Link to comment Share on other sites More sharing options...
2and3 Posted September 7, 2011 Share Posted September 7, 2011 Just bumping this up a bit. We will be able to get 'consent to let' for I think it was 3 yrs. Cost of £299 for 1st yr and £199 for the next ones. Good stuff. Landlord insurance quotes sorted(ish) Now where do I go from here AND, do I do what people say we should not do and let a friend rent it out for us? He already has someone in mind !!!!!! He himself has 2 properties he lets out not far away. And he is huge and not to be messed with but.......?????? Not sure what our next step is, not done this before. Link to comment Share on other sites More sharing options...
belaroy Posted September 7, 2011 Share Posted September 7, 2011 Here is a link I think people letting out their property should read. http://www.estateagents123.com/letting_your_property.php it seems to have a lot of useful info that landlords must abide by. I know people are a bit ' she'll be right mate' about not telling their mortgage co about letting it out, but I have said in posts before - you won't be covered by insurance if something major happened to your house or the people inside it. I personally don't let out a property but a very good friend of mine lets out a good dozen houses he owns - the hurdles he jumps through are amazing - but should anything happen he is fully covered. For the sake of a couple of thousand pounds is it worth the risk of having a plot of land with nothing on it and a big law suit on your hands because you didn't have the boiler checked as you must have by law ??? I am not trying to put people off but you have made massive sacrifices making the move to OZ for that little extra work to dot the I's and cross the T's has to be worth it surely .... Link to comment Share on other sites More sharing options...
paisleylass Posted September 7, 2011 Share Posted September 7, 2011 For those with trouble getting consent to let, I've spoken to Barclays and it's fine to take out their BTL mortgage if you are moving abroad, and furthermore you can even apply for their BTL from abroad, through Barclays International. Hurray! However, you do need 60% loan to value ratio ( e existing mortgage with. Link to comment Share on other sites More sharing options...
Guest Nakrob Posted September 8, 2011 Share Posted September 8, 2011 I also have an HSBC tracker mortgage. Have been out of the UK for 8 years and have been renting the property since. On a recent trip I enquired about remortgaging to release some equity to purchase in Aus. I was then asked if a. I'd advised them I was letting my property and b. I'd advised them that I was oversees. I had done neither. I was told "I should have done" but that they would turn a blind eye if I walked out. I think this is a case of its all OK until something goes wrong. I wouldn't loose too much sleep over it. I now have enough liquid assets in the UK to pay off the mortgage if needed (I don't want to as its the lowest cost loan I have!) so if push comes to shove for whatever reason I pay out and walk away. Link to comment Share on other sites More sharing options...
MikeW Posted September 8, 2011 Share Posted September 8, 2011 We had to rent our uk house as unable to sell quickly. When we rented it through agency, the agency demanded we tell the bank. This annoyed me as I thought the bank would raise the interest rate. We wrote to them, and got a one off charge of £1500. Luckily they did not raise the int rate. Good luck! Link to comment Share on other sites More sharing options...
Cal2 Posted September 8, 2011 Share Posted September 8, 2011 may leave ours empty for a while as it's up for sale, reckon I'll tell them anyway Cx Link to comment Share on other sites More sharing options...
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