flanagaj

Hi,

We are currently locked in to a 5 yr fixed rate mortgage and to get out of it will cost us 10k :-O I am thinking about possible options as we want to rent our property out rather than sell it.

Do we let the property and not tell mortgage provider so as to avoid rip off redemption penalty

Ask mortgage provider whether we can switch to a but to let. Worried about doing this as if they say no, then they know we are going to Aus

The other thing is what you do about getting a new mortgage when you are in Aus and your current one comes to an end?

Thanks

Craig Vaughan

Just checking, you must be talking about a UK Mortgage right?

mikelincs

Assuming you mean UK, then you MUST tell your mortgage provider otherwise you mat find out that you have invalidated the mortgage and any mortgage protection policy, you also need to tell the insurance companies, in fact you should have already told them you were moving to OZ as the property will/would have been left unoccupied.

spouse of scouse

This might be of some help to you Can I let my new house without telling my lender? | This is Money

Bermudashorts

Well I did not tell my mortgage provider and survived. I don't know why people assume not telling mortgage provider means not telling insurer or tax man. I got the right insurance, checked the details and paid full tax. If mortgage company is still getting their money every month, they have no reason to take any action.

To the question about remortgaging, well that isn't going to be possible without getting a very expensive expat mortgage, the 5 year term will default to a standard variable I will assume, it won't "end" because money is still owed.

Beoz

I concur with BS. Getting a good deal on a mortgage in the UK from abroad is tough. Phone around though. There are people who will do it, you will pay a premium being non resident, but it may work for you. Don't bother with the high street banks. There's no need negotiation there.

paulry

When I made a claim on my insurance for the kitchen fire in my former home turned rental, one of the first things the insurer wanted was proof that I'd got consent to rent from the building society I have my mortgage with.

paulry

It's a con but the mortgage company typically adds on a couple of percent if you switch from owner occupier to landlord.

Bermudashorts

Did you ask them why? I read my policy carefully and there was no mention of my mortgage situation.

paulry

I'm pretty sure it said in the small print that I needed to have consent from my mortgage provider. I'm with the same insurer and product so I'll dig up the policy and check.

Bermudashorts

Well if not says it, then that makes sense, but if it does not, I don't see how they can claim this was required after the fact.

paulry

I would think that most landlords' insurances would have that clause because it's a "wriggle out of commitment" opportunity that few insurers would be able to resist.

Consent to Let FAQs - Direct Line For Business

Bermudashorts

Mine didn't.

Also that link did not suggest that the insurer has a view on whether the mortgage provider is told. Only that they themselves are told (which is obvious).