Need new mortgage for my UK property
 

Hi everyone,

I own a house in the UK and live in Australia. I need to have a new mortgage secured for my house within the next 6 months. This is because my current mortgage is residential with consent to let. The consent to let cannot be extended past May next year. I now need a buy to let mortgage as I am remaining in Australia.

Selling my house is not an option as it is not a good time financially to convert pounds into dollars.

Can you provide me with a mortgage company and/or broker or contact who can assist me gain a new mortgage?

Thank you very much
C

Re: Need new mortgage for my UK property
 

Don't think many people have ever pulled that off. It is nigh on impossible to secure a mortgage from overseas these days.

Is your current lender pushing you to remortgage - if so ask them for a recommendation, it would be in their interests if they want their loan repaying.

Otherwise google for some brokers..?

Re: Need new mortgage for my UK property
 

Thank you for your reply.

My current mortgage is residential with consent to let for 2 years. 2 years is the maximum length of term this bank will let an owner not live in the property but keep their residential mortgage.

Therefore I have to change it before the 2 years runs out.

My bank will not give me a new mortgage as they do not provide ex pat mortgages.

They will not let me keep my existing mortgage - as it is a residential mortgage and I have not lived there for 2 years - thus I am not resident there.

Re: Need new mortgage for my UK property
 

You might find this a real problem unfortunately. As BS mentions getting a buy to let mortgage whilst being non resident in the UK is virtually impossible. I know from experience.

You may be able to try a bank in Australia (assuming that's where you are). Even if successful fluctuating exchange rates can be a real headache.

You may want to sell up, and rather than transferring the money, buy a place with no mortgage. Student studio in Newcastle or something.

Re: Need new mortgage for my UK property
 

Yes but have they contacted you, specifically told you you must change? If so, have they given you any recommendations and what have they said they will do when you have replied "I cannot get another UK mortgage"? Because the reality is you are unlikely to be able to do so.

If they don't contact you I would (and did) keep quiet.

Re: Need new mortgage for my UK property
 

I agree with Bermudashorts, say nothing and keep paying the mortgage. If the repayments are coming in on time I doubt they will even know or care. if all the boxes were ticked when you were granted the mortgage, leave them ticked.

Re: Need new mortgage for my UK property
 

I also agree with BermudaShorts, as long as you keep paying it is unlikely the bank will do much, and legally they will find it very difficult to do anything as the loan is "performing".

Per Beoz's suggestion, there is absolutely no chance that an Australian bank would be able to help because to process a mortgage for a property in the UK, they need to register the lien over the property and that means understanding the UK process and having legal support to register mortgages in the UK and to act on the lien if the bank needs to repossess the property.

Re: Need new mortgage for my UK property
 

They sell it that way.

https://www.hsbc.com.au/1/2/personal/international/invest-os

First port of call would be to speak to an international bank that has local power to re-possess.

The bank selling the idea and actually approving it is two different stories.

But there is an avenue that I'm sure will be plagued with gotcha's.

I wouldn't do it. Even if they approve it, fluctuating exchange rates can be a killer.

Re: Need new mortgage for my UK property
 

HSBC isn't an "Australian bank", it is a British bank that happens to have retail branches in Australia. I suspect that if you were to succeed in getting a mortgage, it would be in pound sterling, so as long as the house is rented the borrower/landlord will be fairly well hedged against currency fluctuations.

I don't know of any other bank (other than HSBC) that offers mortgages in the UK and has retail branches in Australia. Without both of those factors being true, the idea of getting a mortgage from a bank branch in Australia for a house in the UK is a total non-starter.

Re: Need new mortgage for my UK property
 

I tried to do this a couple of years ago on an investment with my parents, and had absolutely no luck at all. The UK banks are exceptionally hostile to overseas borrowers.

You may have some luck with an EU based broker - but I suspect given the brexit clusterf**k they will be very reluctant as well.


S

Re: Need new mortgage for my UK property
 

Same problem - without an existing department and legal team already set up to register mortgage liens in the UK, and potentially reposess UK properties, no bank/broker (almost all brokers have a bank standing behind them, providing the finance) operating outside the UK will be in slightest bit interested in providing a mortgage loan secured on a property in the UK.

And it's not so much that British banks being "hostile", the reason is that after the meltdown of 2008-2009 the banks were told to "reduce their balance sheets" or in other words, get smaller by making few loans, and the easiest way to do that was to shut down and eliminate small fringe activities, such as lending to expats.

The fact that the price of houses in the UK is insane and that by the time the bank needs to repossess the property the value might have crashed, only made the decision to get out of the expat mortgage business even easier.

Re: Need new mortgage for my UK property
 

Be careful with this, I tried it. The only reason the bank cottoned on was they had statements returned to them. I only figured this out when I tried to check my balance online, could not login. Called the bank up and found this out. I had to come clean and they were very good, allowed me to change to a buy to let very easily. And did not get hit with a big interest rate.

If you can stop paper statements and any mail and have everything emailed to you, that would probably work in your favour.

Re: Need new mortgage for my UK property
 

Depending on your position in Oz it is very easy.If you have assets here then remortgage and pay off the loan in the UK,a natural currency swap with yourself.Possibly at a very good time.


Risk is taken out of it as you repay the loan in A$.While I never keep up with forex $100k is around 60k (quid).For $100k then $100 a week pays it off at present rates.


If you do not have backing here,good luck,banks are really being screwed on false information and popular opinion.


Geordie downunder

Re: Need new mortgage for my UK property
 

Another thought just crossed my mind.If you do not have enough here to pay the mortgage off then same currency swap.




Get as much as you can here,convert it to GBP,place it on deposit with your UK bank to give them extra security,and have all rent paid into the same account.If they have offset facilities same as here all the better.Contact the bank first to see if they will do it,always be honest with them.


The idea of banking is to lend out as much as you can as safely as you can.


Geordie downunder

Re: Need new mortgage for my UK property
 

No shit

That said, their local branches are quite Australian, and really distance themselves from their UK counterparts which for the case of this poster and the case of international business, is a right pain in the arse.

Perhaps Citibank

Totally agree

Re: Need new mortgage for my UK property
 

Please check the T&C's of your Landlord Insurance as it is likley a requirement that you have obtained permission from your lender to let your property. You could run the very real risk of any insurance claim being rejected if you decide to keep quiet and continue to let without permission.

When we let our UK home a couple of years ago we had to supply proof from our building society that we had their permission to let our property and sign a declaration.

We were also in a similar situation whereby we had permission to let for a maximum of 3 years only and would then have to obtain a buy-to-let mortgage which our lender no longer offered. Worse case scenario would have seen us selling and buying somewhere else outright (as a PP has suggested), but fortunately we were happy to return to the UK at the end of my husband's two year contract.

Re: Need new mortgage for my UK property
 

I wondered how long it would be before this came up. :o

Actually it is not particularly likely that the insurer will give a damn how the property is financed, it has got nothing to do with insurance. Mr BS and I read the policy with a fine tooth comb and with thirty years of insurance industry experience between us and there was zero about financing arrangements, I think it is one of those myths that prevails. I would say you are the exception rather than the rule if it were the case for you.

Hence I stick to my earlier advice, keep quiet.

Re: Need new mortgage for my UK property
 

But you'd need to let your home insurer know that you rented your property out? That's a clause in Aviva's home building insurance, anyway.

Re: Need new mortgage for my UK property
 

We have been renting out UK properties for about 20 years, and now we only have building insurance. Touch wood have never had a problem.
We have very good agents in place, 3 monthly property reports, and take between 4/6 weeks rent deposit depending on where the property is. Not returned until final inspection is approved.
We rent furnished and unfurnished out, but we only have small places so wouldn't cost a fortune to replace any furniture.
You do hear of horror stories, so good agents are important, but as we know plenty of expats like ourselves who also rented out their houses, luckily no horror stories.

Re: Need new mortgage for my UK property
 

Might be different now as there was no problem getting a buy to let mortgage then as expats. Just asked my husband if he told the lenders who the building insurers are answer no, perhaps should, but never been an issue.

Re: Need new mortgage for my UK property
 

Absolutely. That is essential. Zero chance of a claim being paid out otherwise.

Totally different to telling them about financing arrangements.

Re: Need new mortgage for my UK property
 

What is your LTV % please?

Best regards.

Re: Need new mortgage for my UK property
 

We own 3 houses in US currently on rent.You can take cash out from your current Australian mortgage and pay off UK mortgage.AUD is weak currency with poor exchange rates.

Re: Need new mortgage for my UK property
 

=> Not compared with the GBP presently!

Best regards.

Re: Need new mortgage for my UK property
 

Well if that were true, it would not be helpful to try to pay off the UK mortgage with AUD. However as the AUD is currently very strong against the pound, it would indeed be good to use AUD to pay off a UK mortgage. That assumes the OP has an Australian mortgage or spare AUD though, which they have not said.

Re: Need new mortgage for my UK property
 

Hi. There are a few UK lenders who still consider BTL mortgages for expats. Due to some legalistic thing, Australia makes in harder, but it is still possible <snip>
I wouldn't add FOREX risk into the mix and borrow in AUD for a £ debt if I were in your shoes.
National Counties and KR a good place to start.
Good luck!
Rory <snip>

Re: Need new mortgage for my UK property
 

And who might they be?

Last time I went on that merry go round, they say one thing, then when you dig a little deeper, they want a 50% deposit and a 10% interest rate.

Standard BTL:
Kent Reliance
NCBS
Skipton International (not Australia)

Larger loans:
EFG
NatWest International
Kleinwort Benson
SG Hambros (client dependent)

and a few more

I may be accused of self-interest here, but find a UK broker who has experience of these - generally they will charge a fee, but it should be modest, should only be payable when it goes through and will save you an awful lot of hassle.
A good specialist will have good relationships with key lenders, and if they are only being paid when they come through for you, they will make sure that they do.
Do check the fee and the T & C's though!

....though it will still be a fairly draining experience, as you rightly say Beoz! However, if yours and the broker's goals are aligned, they should do some of the heavy lifting.

Re: Need new mortgage for my UK property
 

If indeed you are a broker, yes it might be self interest but it might be worth posting your contact details.

This questions comes up a lot here and is useful to know a contact point.

That said, I won't be paying a fee to be told its a 50% deposit and a 10% interest rate.

Re: Need new mortgage for my UK property
 

Yep, I am a broker for my sins.

Not sure admin rules allow me to post contact details? Can anyone advise....

Thanks all, Rory

Re: Need new mortgage for my UK property
 

Broker Guide:

Do NOT pay any broker a fee until you have a mortgage offer

Make sure that they are whole of market/independent (harder than it sounds)

Ideally find an expat or HNW (high net worth) specialist - they will be used to placing cases out of the ordinary - or prepare yourself for a long wait followed by broken promises (excuse the cynicism)

Check them out on the UK FCA register - make sure they are legitimate

Have a look at their website - are their 'testimonials/feedback' from other 'non-standard' clients?

Re: Need new mortgage for my UK property
 

Well thanks to your unimaginative user name and with help from Google, who is my friend :), it isn't hard to find you! :lol:

For those need help, add "broker" to Rory Joseph in a Google search. :nod:

Re: Need new mortgage for my UK property
 

Good work Pulaski!

Re: Need new mortgage for my UK property
 

Good stuff

Re: Need new mortgage for my UK property
 

Tell me one thing. Can you find an expat mortgage that doesn't require a 50% deposit and has a 10% interest rate?

Re: Need new mortgage for my UK property
 

HSBC can provide non resident buy to let mortgages for ex-pats.Might be worth giving them a call or going to a local branch in Oz. 75% LTV , 3.24 % rate

https://www.expat.hsbc.com/1/2/hsbc-.../am-i-eligible

Better than 50% loan to value ...probably!
A better interest rate - definitely, unless you are very peculiar... :eek:

Yes, HSBC are great and you are best off talking to them direct - we are still going through due diligence to get acess, as they are rather limited distribution.
Do be careful though - I have heard many stories of meeting 1 seeming like it was a done deal, then meeting 2 ending with a no.

Re: Need new mortgage for my UK property
 

See how far you get with that offer.

As a HSBC premier account holder, both UK and Oz, that offer is continually met by "gotcha's"

Its a gimmick at best.

I think I'm about to leave HSBC. The instant transfer back and forth is nice but I don't often do it.

Re: Need new mortgage for my UK property
 

No, they don't - it's essentially just 'touting for business'. You can advise, and that's great, but you cannot direct anybody to your services at all.

HTH.

Re: Need new mortgage for my UK property
 

Say nothing, pay your mortgage......I did.

If you are committed to australia sell your uk house as soon as you can. If you want to play the currency game then put it in a uk donomination bank account and wait for a better time to transfer. Bear in mind that its not a zero sum game, while you wait you are paying more interest (or rent).

Who knows where the currency will go. The Uk could be a banana republic in a few years time; what price the currency then?