Mortgage - Urgent help/advice needed!
Discussion
I'm currently (last 15 years) working overseas, and have been letting my house in the UK.
Eveything above board - permission in writing obtained from lender (H******x) - house insured (also with the lender) as a rental property.
I received a letter today saying that the consent to rent the property has to be renewed, and asking me to call them.
When I called they said they'd have to move me onto a buy-to-let mortgage, as I'm not planning to return to the UK in the forseeable future. I didn't really have a problem (although I was expecting it to cost more). When they started going over the questions we hit a problem - my current tenants have a 2-year contract (they wanted the security of a longer contract, and it's good for me too - changing tenants costs and is a hassle).
The script-reading monkey couldn't go any further - they only allow for a maximum of 1-year rental contracts. His manager was called, but was unable to approve this either. They then said I had to contact the rental agency I use and arrange a new contract. They also said that if I couldn't arrange this by the end of January that I could be viewed as being in breach of my mortgage conditions. The call ended (politely) at that point as we couldn't go any further.
I've since contacted my letting agents, who can arrange a new contract (at a cost), but they also suggested shopping around for an alternative mortgage supplier. I do wonder however whether I'd get a mortgage as I have no income in the UK other than the rental from my house (although the rental income is currently nearly double my monthly mortgage repayments).
Anyone on here able to advise? Contact me via PM if you like.
My situation:
Mid 40's working overseas.
Company director (no goatee, and not particularly powerfully built!)
Current (repayment mortgage) has 9 years left to run, there's no penalty for early repayment.
Total amount owing is nearly £27000
House next door is currently for sale at an asking price of £189950
House is currently rented out at £575 PCM
I have never missed/made a late payment on my mortgage. As I have been out of the UK for 15 years I don't have any other UK credit history.
If we hadn't hit the problem with the term of the current rental contract I'd have renewed with the current lender. As it is, I'm strongly tempted to dump them. The question is, would another lender look at me? Also, is it easy to change? I want a straight repayment mortgage (when I took this out everone was doing endowments etc. but I don't want any risk, and I think it was probably for the best).
I could (just about) pay the balance and tell them to do one, but this would absolutely clean me out and I'd prefer not to do this.
Eveything above board - permission in writing obtained from lender (H******x) - house insured (also with the lender) as a rental property.
I received a letter today saying that the consent to rent the property has to be renewed, and asking me to call them.
When I called they said they'd have to move me onto a buy-to-let mortgage, as I'm not planning to return to the UK in the forseeable future. I didn't really have a problem (although I was expecting it to cost more). When they started going over the questions we hit a problem - my current tenants have a 2-year contract (they wanted the security of a longer contract, and it's good for me too - changing tenants costs and is a hassle).
The script-reading monkey couldn't go any further - they only allow for a maximum of 1-year rental contracts. His manager was called, but was unable to approve this either. They then said I had to contact the rental agency I use and arrange a new contract. They also said that if I couldn't arrange this by the end of January that I could be viewed as being in breach of my mortgage conditions. The call ended (politely) at that point as we couldn't go any further.
I've since contacted my letting agents, who can arrange a new contract (at a cost), but they also suggested shopping around for an alternative mortgage supplier. I do wonder however whether I'd get a mortgage as I have no income in the UK other than the rental from my house (although the rental income is currently nearly double my monthly mortgage repayments).
Anyone on here able to advise? Contact me via PM if you like.
My situation:
Mid 40's working overseas.
Company director (no goatee, and not particularly powerfully built!)
Current (repayment mortgage) has 9 years left to run, there's no penalty for early repayment.
Total amount owing is nearly £27000
House next door is currently for sale at an asking price of £189950
House is currently rented out at £575 PCM
I have never missed/made a late payment on my mortgage. As I have been out of the UK for 15 years I don't have any other UK credit history.
If we hadn't hit the problem with the term of the current rental contract I'd have renewed with the current lender. As it is, I'm strongly tempted to dump them. The question is, would another lender look at me? Also, is it easy to change? I want a straight repayment mortgage (when I took this out everone was doing endowments etc. but I don't want any risk, and I think it was probably for the best).
I could (just about) pay the balance and tell them to do one, but this would absolutely clean me out and I'd prefer not to do this.
As your not living at the property, it would have to be a BTL mortgage, therefore likely to be higher than your current rate.
Most lenders will want you to have a traceable UK address, employment and credit history.
Most lenders will want you to be paying UK income tax and to be paid in sterling, which I assume your not.
Based on the info you've provided I suggest that if the only cost to you is to get a new contract drawn up, then do that.
Most lenders will want you to have a traceable UK address, employment and credit history.
Most lenders will want you to be paying UK income tax and to be paid in sterling, which I assume your not.
Based on the info you've provided I suggest that if the only cost to you is to get a new contract drawn up, then do that.
Sarnie - I would have gone for it there and then and renewed if we hadn't hit the 2-year contract barrier. I don't mind paying a bit more if it's necessary. It was just after I got off the phone and called the rental agency to find out about getting a new rental contract, that they suggested shopping around.
Scotal - What is the problem with a 2-year rental contract?
FWIW I have now looked in my house file and the existing contract runs out in November 2012 (less than 1 year). Will that make a difference?
Scotal - What is the problem with a 2-year rental contract?
FWIW I have now looked in my house file and the existing contract runs out in November 2012 (less than 1 year). Will that make a difference?
sunbeam alpine said:
Scotal - What is the problem with a 2-year rental contract?
It gives them a problem with repossession. However unlikely that maybe to happen they have to take the worst case into account.sunbeam alpine said:
FWIW I have now looked in my house file and the existing contract runs out in November 2012 (less than 1 year). Will that make a difference?
I would certainly go back to them and explain when it expires and that you are happy to forward them a copy, they might then be able to sign off your new loan.You might also have to say you wont sign a contract of over 1 year in the future.
Hopefully they will be snesible.
Scotal - thanks for your quick reply. I did say that I wouldn't make any contracts longer than a year in the future, but unfortunately I didn't have the file to hand when I rang (I called from the office and the file was at home).
My main reason for thinking about moving was the attitude of the manager I spoke to, not the first guy I had on the phone. While not actually threatening he was implying a threat - "if you can't arrange this you will be in breach of the mortgage agreement and you don't want to do that" - were his words.
I have no intention of that - as I said in my first post, everything was above board - I did everything via the lender - even the rental of the house used to be with them. I'm now renting via another agency because the person responsible for visiting my house (3-monthly visits) hadn't been doing it and the tenant did a runner, leaving a trashed house and large unpaid gas and electricity bills which I had to sort out for myself.
You seem to know quite a bit so if you say I'm wasting my time looking for an alternative lender, I believe you. I just don't like being threatened, and the telephone call laft me feeling that way. It was also quite galling to have spent 21 minutes on the phone (International call) to get nowhere, and knowing that I'll have to start all over again when the other contract is in place.
P.S. A couple of other questions if I may:
At present I'm paying 3.5% (their Standard Variable Rate). What are they likely to ask as a BTL?
Will it be a completely new mortgage or an amendment to my existing mortgage?
Anything I should watch out for?
My main reason for thinking about moving was the attitude of the manager I spoke to, not the first guy I had on the phone. While not actually threatening he was implying a threat - "if you can't arrange this you will be in breach of the mortgage agreement and you don't want to do that" - were his words.
I have no intention of that - as I said in my first post, everything was above board - I did everything via the lender - even the rental of the house used to be with them. I'm now renting via another agency because the person responsible for visiting my house (3-monthly visits) hadn't been doing it and the tenant did a runner, leaving a trashed house and large unpaid gas and electricity bills which I had to sort out for myself.
You seem to know quite a bit so if you say I'm wasting my time looking for an alternative lender, I believe you. I just don't like being threatened, and the telephone call laft me feeling that way. It was also quite galling to have spent 21 minutes on the phone (International call) to get nowhere, and knowing that I'll have to start all over again when the other contract is in place.
P.S. A couple of other questions if I may:
At present I'm paying 3.5% (their Standard Variable Rate). What are they likely to ask as a BTL?
Will it be a completely new mortgage or an amendment to my existing mortgage?
Anything I should watch out for?
I can understand you being pissed off at the manager, hopefully it was just his phrasing, and not his actual stance. (He might have been alerting you to a potential problem rather than implying a threat)
Unfortunately you'll have to double check with them what the BTL deal they'll offer you is.
And what fees they'll charge.
Their current BTL 2 year fixed for remortgages is at 4.99% with a £995 fee, the tracker is 4.29% with the same fee.
Both have tie ins until the end of the incentive.However they may have "special" deals for cases such as yours that I can't see. After all they are forcing you to remortgage, might be nice if they did you a deal.
Unfortunately you'll have to double check with them what the BTL deal they'll offer you is.
And what fees they'll charge.
Their current BTL 2 year fixed for remortgages is at 4.99% with a £995 fee, the tracker is 4.29% with the same fee.
Both have tie ins until the end of the incentive.However they may have "special" deals for cases such as yours that I can't see. After all they are forcing you to remortgage, might be nice if they did you a deal.
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