Browncoat

I have just been offered a position in Dubai, and will be flying out within the next 2 months. No doubt I will be asking for a bit of help on here, and really appreciate any feedback.

I have a house in the UK which I am currently paying a mortgage on, and would prefer to keep this house and continue to pay the mortgage while living and working in Dubai.

Does anyone else do this, and is there anything I need to be aware of i.e additional bank charges, best method to pay.

Does having an address in the UK provide problems regarding tax etc.

hong_konger

Yes I am sure there are many people living overseas who still pay there UK mortgage. Why would that change just because you go to work overseas unless you want to sell it now at the top of the market and hope prices fall again by the time you repatriate.

Presumably you currently pay the mortgage by direct debit from a UK bank account ? Why would you change that and why should there be any additional charges ?

Also many people rent out their property whilst overseas for additional income, this is possibly something worth considering too.

Meow

If you plan to let the property you need the permission of the mortgage company and whether you let it or it will be vacant for some time you need to notify your insurance company.

If you receive rental income it will be liable to UK income tax, less permissible expenses and the actual amount you pay will depend on your residency status as you will likely be considered UK resident for tax purposes for the remainder of this tax year, dependent on how long you remain out. The Personal Allowance currently applies to expats but is likely to be withdrawn in the next couple of years. (More info on this & other tax issues on my website, link below).

You should always retain a UK bank account so can continue making payments from that.

OriginalSunshine

If you rent for more than 12 months, your bank may consider you a landlord, and you will need to re-apply (with expense) for a buy-to-let mortgage.