Si T Posted December 23, 2011 Author Share Posted December 23, 2011 Same here for me in the end spoke to the mortgage company and basically told them if they didn't give me an interest only mortgage and permission to rent I would give them the keys back. I bought my house for 186k and it's now worth 149k so I'd lost my deposit and was in neg eq of 15k. After about a week they changed the mortgage to buy to purchase and let me remortgage to interest only and it cost me £299 in total. Personaly I don't think the bank would want your house back so be firm with them whats the worst can happen? Loving Fremantle! Thanks for letting me know. Puts my mind a bit more at ease to know somebodyhas gone through it and come out the other side with a reasonable result. Also, I read your reccommendation for Wangara Car Hire and booked our car for the 15th March this morning. Si Link to comment Share on other sites More sharing options...
bensdad Posted December 23, 2011 Share Posted December 23, 2011 You'll be fine with Steve, be firm with the mortgage company you have nothing to lose. Loving Fremantle! Link to comment Share on other sites More sharing options...
Rupert Posted December 23, 2011 Share Posted December 23, 2011 I haven't told my mortgage provider, I sounded them out but they told me I would have to move provider as they don't do a BTL product, so I just went quiet and rented it out anyway. I have got the proper insurance however and am hoping to pay off a lot of the mortgage whilst the AUD is so strong. Link to comment Share on other sites More sharing options...
millers Posted December 23, 2011 Share Posted December 23, 2011 were off to Queensland in 6 weeks and have not told our mortgage company were going and that is what we have been told to do by our independent mortgage advisor !!! lol.....and we are renting out our house..!!! so i agree with Paul. Were keeping stum......if the mortgage gets paid each month thay will be none the wiser. Link to comment Share on other sites More sharing options...
pintpot Posted December 23, 2011 Share Posted December 23, 2011 that is what we have been told to do by our independent mortgage advisor !!! If he's an IFA then he's taking a big personal risk recommending that course of action. If the lender find out (they might not, of course) then the risk you run is of mortgage cancellation or repossession. The risk he is running is of being struck off by the FSA It's always your choice. But it's a massive risk not telling your lender for reasons that have already been explained Link to comment Share on other sites More sharing options...
Guest marchatfield Posted December 23, 2011 Share Posted December 23, 2011 Wow I can't believe so many people are having problems I feel I should at least give the other side as not all banks are monsters, I am with the halifax they have given me a 3 month payment holiday starting when I leave for aus and they have give me permission to rent my house for 3 years with no extra fees or charges. they did all this in my first phone call. I guess I have been quite lucky compared to you guys. keep going though I'm sure it will all work out. Link to comment Share on other sites More sharing options...
pswebb38 Posted December 26, 2011 Share Posted December 26, 2011 I am with C&G and just phoned them to ask their advice about letting the house out. They said fine no problem and sent me a form out. Then we got a letter saying our decision to let the house had been approved. No fees, no hike in interest. Our mortgage is more than our rent, we have about a 200 pound shortfall every month. But we can afford it and see the house as an investment. We're going to work hard over the next year or so to pay it down so that the rent covers the mortgage, then save up to buy another property to let out in the UK. So, I guess your decision about what to do will depend on how much you'll be earning in Oz, how much you're willing to make up the shortfall on your mortgage payments if you do rent it out. From what you've said, it sounds like you're in negative equity (if you would have to pay a further 12k if you sold it). So I would think the best option would be to rent out until the house is back in the black. Then re-appraise and either sell or continue letting. We've got a mortgage with C&G aswell. Did you tell them you were moving to oz when you spoke to them? How long have they given you permission to rent it out for? Link to comment Share on other sites More sharing options...
Si T Posted December 27, 2011 Author Share Posted December 27, 2011 Wow I can't believe so many people are having problems I feel I should at least give the other side as not all banks are monsters, I am with the halifax they have given me a 3 month payment holiday starting when I leave for aus and they have give me permission to rent my house for 3 years with no extra fees or charges.they did all this in my first phone call. I guess I have been quite lucky compared to you guys. keep going though I'm sure it will all work out. Ironically its The Halifax I am with Link to comment Share on other sites More sharing options...
LittleLakeGirl Posted March 4, 2012 Share Posted March 4, 2012 Wow I can't believe so many people are having problems I feel I should at least give the other side as not all banks are monsters, I am with the halifax they have given me a 3 month payment holiday starting when I leave for aus and they have give me permission to rent my house for 3 years with no extra fees or charges.they did all this in my first phone call. I guess I have been quite lucky compared to you guys. keep going though I'm sure it will all work out. I hope that you don't mine me being nosey but, do you mind saying how much you had left on your mortgage, how much equity in the property & what deal you're on? The reason I ask is because I've just posted a similar thread to this, & I'm with the Halifax & that wasn't my experience when I called them. I was told I'd probably end up paying the higher level admin charge and be at the higher end of their scale for interest charges, all this and they've just announced that they're upping their SVR. Urgh. Link to comment Share on other sites More sharing options...
cki2011 Posted March 4, 2012 Share Posted March 4, 2012 Hello Si Just a thought can the ombudsman not help or at least liase with your bank they have a fair bit of power so it may be worth a try. Good luck Thanks Dave & Carmel Link to comment Share on other sites More sharing options...
fourcorners Posted March 4, 2012 Share Posted March 4, 2012 We've got a mortgage with C&G aswell. Did you tell them you were moving to oz when you spoke to them?How long have they given you permission to rent it out for? Yes I told them we would be renting it out. Had a look through our permission letter yesterday. It says we are allowed to rent out the property for the term of the mortgage (23 years left) as long as the term fo the rental agreement does not exceed 12 months. Our tenancy agreement is 12 months long so that's all fine. Up until this month our mortgage has been about £890 per month (4.5% interest) but next month it goes down to £715 (2.5% interest). The rent is £750 minus the fees (10%), so that's £675 per month. So now we will have to pay only £40 per month to make up the mortgage. The only other fees involved have been a £225 fee to apply for permission to rent out. The house was empty for 2 months before our agent found a tenant. We could have asked for a payment holiday but since we could afford the payments that was all ok. So it's all looking good at the moment. And I'm hoping to get a nice tax refund in a few months from the Inland Revenue! All in all the process has been very easy for us. The only hard part was a month of graft to get the house up to scratch to rent it out. We had to sort out some damp issues, repaint inside and outside and tidy up the garden. But it is a 100yr old cottage so I expect more stuff will need to be done now and again. Link to comment Share on other sites More sharing options...
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