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Please help: Consent to let from mortgage company and earning money from the UK?

Please help: Consent to let from mortgage company and earning money from the UK?

Old Nov 28th 2015, 10:47 am
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Default Please help: Consent to let from mortgage company and earning money from the UK?

Firstly, I'm sorry if my question is stupid, or if it is posted in the wrong place.

I currently own (with mortgage) a property in the UK that I plan to let out when I move to the US on a K1 Visa. Obviously I cannot obtain a US work permit until I am married and have sent off my AOS forms. I believe it takes 2 months or so to then receive my work permit.

I will have no outgoings in the US initially, and my only outgoings will be my mortgage and other insurances etc relating to my UK property. Perhaps also my UK phone contract if I keep it on for a while.

However I now have an appointment booked with my mortgage company for 'consent to let'. As I will no longer have my employment in the US, all I will have is the future tenant and a measly bit of savings. (My parents would also act as guarantors if this is possible for mortgages and if they earn enough.)

I must also say that my parents also have their second home on the market. I do have financial interest in that property but it has not sold yet.

Basically I am wondering if my mortgage company are likely to agree to consent to let, and, if not, will any of the points above help me?

Another question I have is whether it is legal to sell my artwork products in the UK while living abroad? (Bearing in mind I do not have a US work permit at this point).
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Old Nov 28th 2015, 2:04 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Why are you telling your mortgage company that you are quitting your UK (I assume that "employment in the US was a typo in your question) job? Have they asked?

Unless the paperwork specifically asks if you are quitting your job, emigrating, or asks about any other prejudical changes of circumstance, then I would recommend that you do not tell the mortgage lender.

Last edited by Pulaski; Nov 28th 2015 at 2:07 pm.
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Old Nov 28th 2015, 2:48 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Thanks for your reply.

I told him that I was moving abroad, but not specifically that I was quitting my job. But I think he would have guessed that. Anyway, the interviewer won't be the same person.

I can keep quiet and hope they don't ask the question, and show them all of my documents up until now, but if they do then I won't have an answer.

I have been on time with all of my mortgage payments since I bought the house two and a half years ago.
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Old Nov 28th 2015, 3:00 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by Kat88 View Post
Thanks for your reply.

I told him that I was moving abroad, but not specifically that I was quitting my job. But I think he would have guessed that. Anyway, the interviewer won't be the same person.

I can keep quiet and hope they don't ask the question, and show them all of my documents up until now, but if they do then I won't have an answer.

I have been on time with all of my mortgage payments since I bought the house two and a half years ago.
Telling them you were moving abroad may have been a mistake, and if it has been written on your records may cause you a problem.

Treat any conversations with the mortgage lender's staff as you would a criminal interrogation, ... or conversation with an immigration officer - answer the question, briefly, no more no less. Do not volunteer additional information unless you have considered very carefully whether it is in your interest to so.

For example, if asked, say you are moving in with your boyfriend/ getting married. ..... Unless specifically asked, do no disclose that your boyfriend/fiancé is in the US.
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Old Nov 28th 2015, 4:05 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

I know, but I was only so relaxed because last time I spoke to them about it in principle they were just like "yes of course that won't be a problem, just let us know a couple of months before you move" without any mention of means testing.

Anyway, what I would like to know is whether, if questioned, income from the tenants would be enough. Or alternatively may they accept a guarantor for a mortgage?

And also, am I allowed to make money from either myself or a third party in the UK selling my artwork? Or is that considered 'working' in the US?

Thanks.
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Old Nov 28th 2015, 4:21 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

From memory of other threads there is a very short list (probably getting shorter) of mortgage companies willing to do buy to let type mortgages for US residents.

I can't remember which banks, you have to search for those threads.
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Old Nov 28th 2015, 4:33 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by sir_eccles View Post
From memory of other threads there is a very short list (probably getting shorter) of mortgage companies willing to do buy to let type mortgages for US residents. .....
In any case after a short time (I think now reduced to just 18 months) you will open yourself to a capital gains tax bill, so selling your home after leaving the UK is usually the most sensible, and tax efficient, decision.
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Old Nov 30th 2015, 5:36 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

We had a complete nightmare with our mortgage company.... they agreed to consent to let verbally over the phone... but we held off so I rang up about 4 weeks before we moved the states. They refused consent to let!

I could not believe it! I told them i was moving to the USA regardless and I couldn't stop it and the property would be sat empty for the next 5 years! (mortgage to be paid by me)

They then agreed in writing! Then revoked it in writing! all these letters were sent to me BTW! So I kept a copy of everyone! So I can Prove in court how incompetent they are if ever needed!

They agreed to do it for 12 months and if I need to extend it I would need to pay 10k off! They sent me paperwork to sign to agree to this! I did not sign it!

So in short be very careful what you say to them! If I could relive my time again I wouldn't of said a thing to them.... they never would of known! To be honest I think they have probably forgotten about it now!
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Old Dec 1st 2015, 1:16 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

We were given our original consent to let around twenty years ago.
To buy a property to rent out was a commercial loan with a higher interest rate, the term " buy to let " did not exist.
Living overseas was not an issue I was given mortgages while living in the Middle East and the USA with many other expats.
Nowadays it appears that the rules for living overseas and letting out a property vary from case to case and company to company. Our mortgage without our knowledge or consent was changed to a buy to let.
The main differences now between a homeowner mortgage and a buy to let are the down payment is more for a buy to let plus some written proof would be needed from a letting agent of the anticipated rental income.
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Old Dec 1st 2015, 3:07 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by ottotheboar View Post
We were given our original consent to let around twenty years ago.
To buy a property to rent out was a commercial loan with a higher interest rate, the term " buy to let " did not exist.
Living overseas was not an issue I was given mortgages while living in the Middle East and the USA with many other expats.
Nowadays it appears that the rules for living overseas and letting out a property vary from case to case and company to company. Our mortgage without our knowledge or consent was changed to a buy to let.
The main differences now between a homeowner mortgage and a buy to let are the down payment is more for a buy to let plus some written proof would be needed from a letting agent of the anticipated rental income.
Its become more popular and if you have some cash sitting in a bank it makes more sense to mortgage a property on a buy to let mortgage... you in essence are making money! The house in essence pays for its self!

Its all to do with interest rates!

The banks think if the landlords are making money then we want to make money so hence the rise of the "buy to let' mortgage. Its causing problems for people with genuine intentions though!
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Old Dec 1st 2015, 3:16 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by nick.simpson19 View Post
Its become more popular and if you have some cash sitting in a bank it makes more sense to mortgage a property on a buy to let mortgage... you in essence are making money! The house in essence pays for its self!

Its all to do with interest rates!

The banks think if the landlords are making money then we want to make money so hence the rise of the "buy to let' mortgage. Its causing problems for people with genuine intentions though!
The rental market in the UK has been "messed up" for many years, and I suspect that the government and Bank of England is fearful about how to deflate the current speculative bubble without causing a tidal wave of reposessions which can't be sold at anywhere close to the current market price, and thereby causing catastrophic losses to the banks. I suspect that the banks, pressured by the Bank of England, will make it ever-harder to finance buy-to-let homes, in part by increasing the required down-payment, and in the case of some banks, just withdrawing from the market entirely - and it will still take upto 25 years to entirely unwind their portfolio of buy-to-let mortgages.

When I bought my house in the UK (SW London) I could have rented an identical house in the same street for £200/mth less than it cost to buy with a 90% mortgage. Five years later I sold for a very tidy gain, but rentals on the same and neighbouring streets were still £200 less than it cost per month, to buy. While there are several possible explanations, I suspect that a lot of it is that people are buying with a view to making capital gains and merely renting to help cover their costs. Needless to say this is not a sustainable situation, but like any other bubble market, the longer it continues, the more people get swept up in the fervour and excitement of "making easy money", and the more painful the end of the bubble is when it comes.

Last edited by Pulaski; Dec 1st 2015 at 3:19 pm.
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Old Dec 1st 2015, 3:46 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

The specific problem with US resident expats is that many banks don't want to deal with FACTA and FBAR.
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Old Dec 1st 2015, 3:46 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by Pulaski View Post
In any case after a short time (I think now reduced to just 18 months) you will open yourself to a capital gains tax bill, so selling your home after leaving the UK is usually the most sensible, and tax efficient, decision.
You mean before leaving the UK?
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Old Dec 1st 2015, 3:51 pm
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Default Re: Please help: Consent to let from mortgage company and earning money from the UK?

Originally Posted by Pulaski View Post
The rental market in the UK has been "messed up" for many years, and I suspect that the government and Bank of England is fearful about how to deflate the current speculative bubble without causing a tidal wave of reposessions which can't be sold at anywhere close to the current market price, and thereby causing catastrophic losses to the banks. I suspect that the banks, pressured by the Bank of England, will make it ever-harder to finance buy-to-let homes, in part by increasing the required down-payment, and in the case of some banks, just withdrawing from the market entirely - and it will still take upto 25 years to entirely unwind their portfolio of buy-to-let mortgages.

When I bought my house in the UK (SW London) I could have rented an identical house in the same street for £200/mth less than it cost to buy with a 90% mortgage. Five years later I sold for a very tidy gain, but rentals on the same and neighbouring streets were still £200 less than it cost per month, to buy. While there are several possible explanations, I suspect that a lot of it is that people are buying with a view to making capital gains and merely renting to help cover their costs. Needless to say this is not a sustainable situation, but like any other bubble market, the longer it continues, the more people get swept up in the fervour and excitement of "making easy money", and the more painful the end of the bubble is when it comes.
Is it a bad thing? people are still buying houses?

Yes its making it harder for a first time buyers for sure, as once they start renting they cant afford to save for a deposit!

The bubble will burst with the interest rate's eventually and I hope I can ride out the tidal wave when it comes along if it comes along!
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