UK mortgage for Aus temp resident
#1
someone's had 'Alex'...
Thread Starter
Joined: Jan 2005
Location: Vic Park, WA
Posts: 270
UK mortgage for Aus temp resident
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
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
#2
Forum Regular
Joined: Nov 2005
Posts: 158
Re: UK mortgage for Aus temp resident
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
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
#3
someone's had 'Alex'...
Thread Starter
Joined: Jan 2005
Location: Vic Park, WA
Posts: 270
Re: UK mortgage for Aus temp resident
Originally Posted by Fardell
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 ..
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
#4
Forum Regular
Joined: Nov 2005
Posts: 158
Re: UK mortgage for Aus temp resident
I thought everyone had outsourced to "absolutely clueless call centres" - you are a lucky chap, sort of! Good luck with the "negotiations" :-)