Mortgage running out and living abroad. HELP!

dfons

Right, I'll try to explain the situation as well as I can. 2 years ago I bought an ex council house, with a 100% mortgage which runs out in a couple of months. My husband bought another house and we both moved to the other property, then my parents moved into my house.
A few months ago, my husband was presented with a very good job opportunity in the Middle East and we both moved there late August. So at the moment, my husband's house is rented and my parents are still living in my property and take care of the mortgage payments. Besides, I am not working anymore.
I really don't know how to approach the renewal of my mortgage. Will I get the mortgage renewed if I don't live in the country anymore and if I'm unemployed. Will the fact that my parents live in my property affect my mortgage agreement?
I'm really in a bit of a mess and don't know what to do.
Please, let me know if there is any further information you require in order to be able to help me on this.
Thank you very much in advance

Louise.

opinions4u

dfons wrote: »

Right, I'll try to explain the situation as well as I can. 2 years ago I bought an ex council house, with a 100% mortgage which runs out in a couple of months.

I assume you mean the deal you were on runs out in a couple of months. The mortgage will continue - presumably at whatever your lender's standard variable rate (SVR) is. You need to check your mortgage paperwork to confirm this. The lender may have other deals available, but these are often no better.

I really don't know how to approach the renewal of my mortgage. Will I get the mortgage renewed if I don't live in the country anymore and if I'm unemployed.

I refer you to the answer above.

Will the fact that my parents live in my property affect my mortgage agreement?

In truth, if you haven't already advised the lender that you are not living in the property, your mortgage agreement will require you to do so. They may (or may not) adjust their interest rate upwards to reflect this. In reality, as long as you continue to maintain the mortgage payments, I'd say nothing to them!!

I would, however, ensure that whoever insures your building is aware that you are not living there, but that the property is occupied by family members. I'd hate there to be a fire and the insurer turn round and tell you that you're not covered.

I'm really in a bit of a mess and don't know what to do.

Stop panicking. Your payments might change, but that's all!

Please, let me know if there is any further information you require in order to be able to help me on this.

Name the lender. Then a broker or employee or ex-employee of the company can give specific explanations as to how they work.

Confirm the term you took the mortgage out over (e.g. 25 years).

Confirm the loan amount outstanding and the value of the property in the current climate.

dfons

Opinions4u, thank you very much for your reply. The information is extremely helpful as I was under the impression that once the initial deal ran out, I would have to renegotiate the whole mortgage. According to your information, I won't have to do anything but the mortgage will change from a fixed rate to a variable (I need to check this out, but all my paperwork is in the UK). Do you think that, given the actual interest rate, my payments will go down?.
I was aware that I should let the lender know about my parents living there but I am pretty certain the amount will increase if I do so, hence I will keep it quiet and do as you suggest and change the insurance documents.
Again, I really appreciate your help on this matter. I am now much more relaxed thanks to you. I will check the points you mention and will post them in due course.
Have a nice day.

alphason

Dfons.

I am in a similar situation to you with my UK property let with the lenders permission. My fixed deal with Nationwide came to an end in July and it automatically switched to the SVR.

Also I recently contacted them about maybe switching to the fixed rate for some stability, but I have no income that I can declare other than the rental income. Nationwide say if you are just switching product with no change in loan or term then they will just change it with no further evidence or fuss. Of course it means staying with your existing lender but it seems quite painless.:T

dfons

thanks alphason. That's good news aswell. It will be interesting to see if my monthly payments go down after they switch to a SVR, but for peace of mind it makes sense trying to switch to a fixed rate again.
Take care