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UK buy to let market

UK buy to let market

Old Dec 16th 2012, 8:27 am
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Default 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.
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Old Dec 17th 2012, 3:02 pm
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Default 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.
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Old Dec 17th 2012, 3:25 pm
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Default Re: UK buy to let market

Originally Posted by DanSolihull
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.
With all the problems with getting mortgages in the UK for people just wanting to buy their own place, then I suspect that, unless you are in employment in the UK, it's probably not going to be easy. B to L Mortgages are, typically a much higher rate than an ordinary one, and they may well be concerned about your job security in Aus.
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Old Dec 17th 2012, 3:44 pm
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Default 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.
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Old Dec 18th 2012, 5:48 am
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Default 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.
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Old Dec 18th 2012, 8:39 am
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Default Re: UK buy to let market

Originally Posted by Beoz
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.
Exactly what I want to do but can't seem to find a lender at the moment hopefully there is one sitting around somewhere waiting for my phone call / email
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Old Dec 18th 2012, 9:45 am
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Default Re: UK buy to let market

Originally Posted by DanSolihull
Exactly what I want to do but can't seem to find a lender at the moment hopefully there is one sitting around somewhere waiting for my phone call / email
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.
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Old Dec 18th 2012, 11:09 am
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Default Re: UK buy to let market

Originally Posted by Beoz
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.
With rental income in UK and local Australian income you could hedge the risk if income is sufficient.

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.
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Old Dec 18th 2012, 8:37 pm
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Default Re: UK buy to let market

Originally Posted by Beoz
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.
Dunno how relevant, but i made an appoint and asked this a while ago at our local westpac branch, sure it was gonna be no problem as long as i had a mortgage in australia also.

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.
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Old Dec 18th 2012, 9:07 pm
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Default Re: UK buy to let market

Barclays?
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Old Dec 19th 2012, 7:14 am
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Default 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.
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Old Dec 19th 2012, 6:21 pm
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Default Re: UK buy to let market

Originally Posted by louie
Thanks for the suggestion, I rang them up earlier and as well as a 25% deposit they also wanted £50,000.00 to be left in an account with them (not to be used as a deposit).

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!!!
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Old Dec 19th 2012, 6:22 pm
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Default Re: UK buy to let market

Originally Posted by al dente
We did this through HSBC in Hong Kong. We live in the UAE and have 2 BTL properties in the UK.
Thanks, will look into HSBC. How long ago was you're last finance secured? I'm told a few lenders have left the market recently.
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Old Dec 20th 2012, 10:46 am
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Default Re: UK buy to let market

Not 100% sure but I thought CBA offered/used to offer a mortgage denominated in GBP or AUD.
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Old Dec 23rd 2012, 11:55 am
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Default 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.
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