THE TURNER CLAN

Has anyone managed to do this? We are going to rent our property in the UK and would like to borrow some money against it to take to Australia. Can anyone recommend any companies they have been able to do this with?

mikelincs

I suspect that when the mortgage company find out why you want to borrow the money they will change the terms of your mortgage, ie increase the repayment % as you will be renting it out, and also refuse your request. You will be in another country, and it may be very difficult for them to enforce payment if there are any problems. Most people have great difficulty in getting a mortgage in the UK while living abroard, so, unless you lie to them, and that can't be condoned, then your scenario seems doomed to failure.

THE TURNER CLAN

Yes - pretty much what we suspected. Thanks for your reply mikelincs.

Bermudashorts

No reputable or high street lender would be lending to you in order to fund a move overseas.

THE TURNER CLAN

the house is owned outright was looking to keep it as a investment property and release funds to invest in oz don't need the money to fund the move just looking at options

Bermudashorts

Yes I understand perfectly what you mean. But it is still borrowing money to move overseas, it would be beyond the risk appetite of any reputable financial institution.

Scotty1

As has been mentioned, it would be very tricky.
A couple of possible options for you to explore.
See a mortgage broker who may know of a specialist lender who would be willing to consider it, but it would likely be a Buy to Let, be expensive and as you would only be able to rely on rent payments to meet the mortgage, so you will need to have some funds left to cover any arrears by the tenant.
If you are currently with HSBC, and have a lot of funds/assets, you may qualify for their premier account, which allows access to a uk buy to let mortgage and they are more relaxed on moves overseas.
However be prepared for hassle, and a mountain of paperwork.

john in oz

I am a finance broker and a adviser on this site - If you need help with looking at investment options or finance options when you get to OZ let me know and i will help where we can. In relation to the other side of your enquiry - our finance affiliate in the Uk has also said the same as i would too and that to borrow money to invest in oZ is a no go. Additionally as pointed out some banks either charge you a additional fee or or a higher interest rate for doing so. A post on this is in my sponsored partner forum.

I hope that helps Cheers

spouse of scouse

I'm a bit surprised that a bank wouldn't lend money in these circumstances. If a caveat was put on the property as security against a loan default, would the banks consider it then?

john in oz

Not Normally as security of funds is just one thing they look at when assessing the loan - The reason or purpose of the loan is to lend money for a person to exit the country and presumably not ever come back. The banks simply do not want to have the hassle of having to go through the courts to seize and force sale of property to get back a few thousand quid in loan funds.

Each bank would be different - but you will find that would be their general thoughts. You can always attempt to get a personal loan and remember they lend for many reasons including travel updating furniture and the like.

You can also obtain a credit card much easier than trying to borrow money for a visa. Just ensure you get a low rate card.

As always it is up to the banks.

spouse of scouse

Thanks John, great information as always. I like to learn as much as I can, even if the topic isn't relevant to me.

john in oz

No issues - I just wish I knew everything in life too :-)

spouse of scouse

Solomon in Oz does have a nice ring to it