UK buy to let market
#1
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 280
UK buy to let market
Hey all, I'm looking for a buy to let mortgage for a UK property while I live and work in Australia. I have been through a broker (not whole of market) who has been unable to find a lender. They said that Birmingham Midshires pulled out of the market a few months ago and they were the last lender they dealt with in the market for expats wanting to invest in UK property.
Just thought I'd ask on here in case anyone knows of any lenders that may be in the market / any advice? Cheers.
Just thought I'd ask on here in case anyone knows of any lenders that may be in the market / any advice? Cheers.
#2
Just Joined
Joined: Dec 2012
Posts: 5
Re: UK buy to let market
iI have been looking into the same thing. Brokers will only look at mortgages from lenders where they will get commission from selling the mortgages. Birmingham Midshires for example only do business though Brokers. I’ve rang up NatWest and they will do a BTL mortgage if you are a UK tax payer when you take the mortgage out.
#3
Re: UK buy to let market
Hey all, I'm looking for a buy to let mortgage for a UK property while I live and work in Australia. I have been through a broker (not whole of market) who has been unable to find a lender. They said that Birmingham Midshires pulled out of the market a few months ago and they were the last lender they dealt with in the market for expats wanting to invest in UK property.
Just thought I'd ask on here in case anyone knows of any lenders that may be in the market / any advice? Cheers.
Just thought I'd ask on here in case anyone knows of any lenders that may be in the market / any advice? Cheers.
#4
Just Joined
Joined: Dec 2012
Posts: 5
Re: UK buy to let market
Natwest was the only lender I spoke to and as long as you are a UK tax payer when taking the mortgage out and have at least 75% LTV that’s fine. You have to have a certain level of rental income too. For example if your mortgage is £500pcm a month you would have to have a rental figure of at least £630pcm. The only other thing they mentioned was that normally people with BTL mortgages have a residential mortgage. If you don’t they will want to know details about the property you are renting etc… You could always ask your current lender about a Consent to Let under your current mortgage. This will give you a year to find a BTL or sell your house. I have only been looking at BTL mortgages not Expat BTL mortgages.
#5
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: UK buy to let market
Hmmm. This sounds like a bit of a bugger for those who are earning a very valuable Aussie dollar and wish to buy a property with low interest rates, rent it out, pay off the mortgage using those valuable Aussie dollars, and to potentially settle in it one day. Something I certainly would like to look at doing.
#6
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Joined: Oct 2010
Posts: 280
Re: UK buy to let market
Hmmm. This sounds like a bit of a bugger for those who are earning a very valuable Aussie dollar and wish to buy a property with low interest rates, rent it out, pay off the mortgage using those valuable Aussie dollars, and to potentially settle in it one day. Something I certainly would like to look at doing.
#7
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: UK buy to let market
Something you could look at doing is getting an Aussie mortgage for an overseas property. Higher interest rates for sure, but also very risky as you're playing with currency exchange - I guess either way you're playing with currency exchange.
#8
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Joined: Apr 2012
Posts: 1,603
Re: UK buy to let market
You can also hedge by taking into account the cost of forward rated exchanges. Its not as hard as you would expect 12 contracts per year, so long as your committments are fixed in both currencies.
#9
Account Closed
Joined: Sep 2006
Posts: 4,374
Re: UK buy to let market
Houses where i come from at the moment are so cheap i also thought about a bank loan and buying with that, but as usual i am playing it safe and trying to save and then (perhaps?) buy there, but dont think ill be able to save enough before the house prices go up a bit, i keep a close eye on the town i come from and they have recovered (very slightly!).Its a kinda day dream of mine. If we did manage we would have no chance of renting it out, so we would have to let one of our cousins or summit live in it rent free and pay the bills and council tax only, to have someone in it would be worth this.
#11
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Joined: Jun 2008
Location: Abu Dhabi by body and Sydney by soul
Posts: 1,841
Re: UK buy to let market
We did this through HSBC in Hong Kong. We live in the UAE and have 2 BTL properties in the UK.
#12
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Joined: Oct 2010
Posts: 280
Re: UK buy to let market
Ridiculous really, I think they're just not in the market but want to say that they are, who would have 50k sat in an account while paying interest on 50k worth of mortgage? The interest on the money will be less than the mortgage interest paid, really annoying me this!!!
#14
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Joined: Sep 2003
Posts: 215
Re: UK buy to let market
Not 100% sure but I thought CBA offered/used to offer a mortgage denominated in GBP or AUD.
#15
Just Joined
Joined: Dec 2010
Posts: 20
Re: UK buy to let market
You can apply for permission to rent through your current mortgage provider, which means you re-apply every year and pay an admin fee, but the mortgage remains as though you were a current owner-occupier. It is open to people who have used the house as their primary residence at any time. PM me if you want more details.