consent to lease mortgage in UK
 

Hi,

I moved to the US 2.5 years ago and rented out my house in the UK. I had to change my mortgage to consent to lease and my lender gave my a 3 year deal.

My deal will run out later this year, and I will try to renew but the lender may refuse and tell me I need to switch to a buy-to-let. I notice that a lot of buy-to-let mortgages are only open to UK residents.

I was wondering if anyone else had a similar scenario and what they did?

Thanks in advance

rk164

Re: consent to lease mortgage in UK
 

Hi

We are only just going through the process of getting everything ready to move to the US, but have not have not had any problems getting our current mortgage changed to a buy to let having already indicated we were moving abroad - that was with the Chelsea, so i guess there are some who are willing to do that. As is always the case, its worth shopping around to see what the best deal is - Unfortunately they are not at their best at the moment so you may find what ever you are offered isnt as good as what it was 2-3 years ago due to the current economics but good luck.
Hope this helps

Re: consent to lease mortgage in UK
 

I am with the One Account run by RBS. All I had to do was inform them and pay a £100 fee.

My guess is that you loan-to-value % will make a huge difference to your results.

Re: consent to lease mortgage in UK
 

I got one through these guys when I was living in the US: http://www.themoneycentre.net/ - not cheap, and rates are currently not great, but sometimes you have limited choice. Also, the LTV has risen a heck of a lot in the past couple of year.

I would also pursue this with your current lender. It's in their best interest that you continue to be financed (i.e., if you default/house is repossessed, they may not make back what you owe).

Good luck. Not an easy time to get a mortgage.

Re: consent to lease mortgage in UK
 

I was with the RBS I told them I couldn't sell the house and my only other option would be to give up the house. They carried on with my usual mortgage. Depends on your LTV

Re: consent to lease mortgage in UK
 

im with the birminghman midshires. they know we are in the us - and seem happy to let us continue our 'buy to let' mortgage. We are currently on a discounted rate deal that i think expires ion september 2009. Its pretty ridiculous however - as its an interest only mortgage (only way at the time to get it under the rental amount). However - the payments were originally well over 1200 quid a month and due to the dropping rates and discounted rate we currently pay NIL a month - towards the mortgage. Think they made a mistake and never set a minimum payment on these types of mortgage and didnt forsee bank rates dropping so low. We are waiting to see with interest what the rate will go back to when the deal expires. We asked for a quote to move it to a repayment mortgage for the remainder of this deal and it was about 900 quid so we will leave it for now and see what happens in the autumn.

if we decide to stay here (ie green card arrives) and the uk housing market improves sometime we may well just try and sell it anyway. so at the moment a holding position is just fine (especially at nil repayment!!!)