Refinancing my UK mortgage from the US

Hi,

My employer is offering me the opportunity to move to their New York (USA) office. They would like me to start mid/late October.

I am excited about the move but one item is causing me a lot of stress, my mortgage!

After a decade of hard graft I managed to make it onto the London property ladder last year. I am on a 2 Year Fixed Mortgage with the fixed rate 2.2% ending 28 February 2017.

Speaking to my mortgage broker he said if I move in October to the US then I am in big trouble, he said my current lender would not refix my mortgage and I would go onto their variable rate of 5.79% plus a loading fee of 1% because I am letting the property (they would give me consent to let) so a whopping and painful 6.79%. He said he wouldn't be able to get me a mortgage with another UK Lender because I wouldn't be in the UK but he could with Natwest Offshore ( 2 Year Fix Buy to Let 3.90%).

I was really shocked with this news that UK lenders would not lend to me, as I am not going to be a US citizen and I do plan to come back to the UK in the future e.g. 2 to 3 years time.

Any advice is really appreciated! This is causing me lots of stress as in New York manager's mind this is all stuff I can sort out when I am there but I think it's a lot more complicated than he thinks.:mad:

Thanks,
pjbltd

Comments

  • cahillg81
    cahillg81 Posts: 239 Forumite
    I think the broker is mostly correct if you are not resident in the UK you are unlikely to be bale to take advantage of any rates whilst out the country. What's the issue with NW if you are going to be letting it? As long as the rental income covers the mortgage are you going to be bothered about the rate you are paying?
    I am a Mortgage & Protection Broker

    MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.
  • pjbltd
    pjbltd Posts: 214 Forumite
    Yes the rental income would cover the mortgage payments (mostly). On that note do you know if the tax on my rental income would be paid to HMRC or the US tax man??

    I have worked out the opportunity cost of staying in London, then refixing (assuming UK Mortgage: HSBC 2 Year Fixed Standard LTV 70% 1.49%) vs moving renting a flat in New York and I lose quite a bit of money if I move to NYK.
  • Jonbvn
    Jonbvn Posts: 5,562
    First Post First Anniversary
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    OP,

    The offshore arms of high street lenders will lend to you at far better rates than that. Do a quick google of "expat mortgages" for lots of lenders and brokers.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
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