anooppunshi

Hi all

I need urgent help. I have recently got my property remortgaged with a new lender (Just paid first monthly instalment). I have got a job abroad so need to move abroad and rent out my UK property. I know under normal circumstances, one would either get consent to let or convert the residential mortgage into Buy to let. I am not sure if I have those options as I am concerned that my lender may not like the fact that I shall no longer be earning UK salary and shall not be a UK resident any more.
Can my mortgage be converted into an Expat mortgage considering my salary abroad? I don't think I have enough time to arrange that.
Any Help would be highly appreciated.

Shirtback

The first thing to do would be to read your lender's small print regarding consent to let &/or converting to buy to let. Then talk to the lender.

As you haven't mentioned which lender we're talking about, nor whether your move abroad will be permanent or temporary, it's impossible to guess/advise further...

Side notes: an "expat" mortgage is a very different beast, as is a remortgage, possibly...

anooppunshi

Hi Shirtback
I wanted to private message you the name of the lender but since I am new I am not allowed to private message.
I am moving with a permanent job but the view is I'll reconsider after couple of years whether I stay there forever or come back to the UK.
thanks

Shirtback

You can't pm before you've posted 3 times on the forum.

Having said that, PM-ing me the name of the lender wouldn't be much help: I'm not an expert, & I rarely reply to PMs unless specifically requested (it's a forum rule, actually) - you'd be much better off keeping your questions on the board.

That said, why do you think/worry that your lender won't give consent to let?

Pulaski

I am not sure that there is much for us to help with. Mortgage lenders can't act based on what they "like" - their actions are based on the laws, regulations, and any policies they have for mortgage lending which might be more restrictive than the applicable laws and regulations allow.

So, read the small print in your mortgage documentation and see what it says about renting out a property. It might lead to an interest rate surcharge, or there might be a prohibition within x months of a new mortgage or refi, or it might be outright prohibited, but it is all down to the mortgage contract, not what the mortgage lender "likes".

anooppunshi

The reason I think lender won't give consent is because my mortgage has started with them only one month ago. Do you think my concern is unnecessary (I wish!!)

anooppunshi

Also isn't there usually a clause in most residential mortgages that the borrower should be UK resident. Since I won't be a UK resident any more, asking consent to let means my lender will have to either rely on my salary abroad or ignore whether I can continue to afford the mortgage since I won't have any more UK income?

Pulaski

At the point of signing the mortgage contact, quite possibly, but having a mortgage does not prohibit you from leaving the UK to work overseas. I suppose you might be asked about the timing of this job offer, but unless you had already signed a contract to work overseas when you signed the mortgage documentation, I wouldn't worry too much about it. And quite frankly, so long as you abide by the rules, e.g. to notify the lender if you rent out the property, the mortgage lender isn't going to care much either so long as they get paid every month!

You appear not to be aware that mortgage lenders don't monitor on a month-to-month basis, or even on an occasional or sample basis, the source of the mortgagee's income. In deed, if the borrower banks with Bank A but the mortgage is with Bank B there is absolutely no way for such monitoring to take place, but it doesn't happen anyway - imagine, it would be huge task to monitor millions of mortgages every month looking for people who had changed jobs, retired, become self employed, got married and stopped working, been made redundant, and all the myriad of other reasons why someone's source of income to pay their monthly mortgage had changed.

Shirtback

I have no idea without reading the mortgage agreement, the lender's terms and conditions.

Until you do that, & possibly share/question the putative & particular clauses which might be giving you cause for concern, I doubt anyone else here can set your mind at rest or give you an answer.

anooppunshi

Just looked at standard terms and conditions of mortgages of this lender on their website. There is a clause as following:
"You must not lease, let, license or part with possession of the property or any part of it."
Having said that, their website has a full section on letting your property as following:

Can I let my property?
If you want to let your property, instead of living in the property, you’ll need to get permission from us first before letting

anooppunshi

I secured the job offer and accepted it after I had received the mortgage offer but before I had completed the mortgage.

Pulaski

So there's your answer.

Expect them to ask about the timing of your overseas job offer.

Shirtback

Then *do* ask (what is necessary for) permission.

And read your own (not just standard info on the website) mortgage agreement t&c.

Without knowing the particulars, I DO think you might be stressing unnecessarily.

I can see how, putatively, the reason(s) you remortgaged *might* putatively have a bearing, but honestly? We're going round in circles ATM.

spouse of scouse

All you can do is call your bank and have an honest discussion with them. Nothing else, no advice, suggestions or guesses, will cut it in these circumstances.

The bank will try to keep your business, how you and they work it out is the only question. Honestly, call them. You'll feel a lot better once it's sorted.

Shirtback

Yes, this.