4lex

G'day all,

Finally got my house in the UK fixed up after if was trashed by vietnamese weed growers earlier this year, and have a new tenant, thought all was going fine....

My UK mortgage provider has discovered somehow (suspect sacked letting agent) that the property is now rented out and seems to think they deserve an extra point of interest. I disagree.

Can anyone recommend a suitable mortgage product or IFA? I'm only looking at less than 50% LTV and the rent returns 60% more than the mortgage payment on a monthly basis.

Cheers,
Alex

Fardell

Hi

Can't recommend an alternative finance provider but I would suggest a word of caution - the reasons:

1) Your contract with the bank probably - somewhere in the fine print - might allow them to withdraw the mortgage. In theory, many mortgages require you get their permission before you rent .. don't know whether that's the situation in your case, and

2) It is excruciating organising a UK mortgage on a property from Australia - even if your rental income hugely exceeds your interest cost - because they don't like the fact you are now largely paid in AUD. I had a mortgage request denied from a well known bank - initials LTSB - even though the rental covered interest expense by 250%,and I had been a customer for 20 years and taken out and repaid 4 mortgages, because my income was now largely in AUD. Because the banks tend to do mortgages online/call centers now I dealt - usually in the dead of night - with no fewer than 13 people in the process with the bank above and there was no flexibility/continuity and it was all too hard for them. A broker might have done better, but I just gave up.

The moral of the story is, I think, don't walk/run away from your current bank unless you have something (firmly) tied up.

Cheers

4lex

Yep, absolutely - take your point. On the plus side my current lender hasn't outsourced their admin to a clueless call centre (yet), so I feel they may well be persuaded to maintain the current mortgage position if I show willing to take the business elsewhere, it is after all hardly one of their greater risk loans.

I've secured a decision in principal at 4.99 variable based on my AUD salary, but the lender wants nearly a grand in fees, which is clearly not realistic.

Cheers,
Alex

Fardell

I thought everyone had outsourced to "absolutely clueless call centres" - you are a lucky chap, sort of! Good luck with the "negotiations" :-)