Re-mortgaging-going overseas-help!!!

kaz

HI Guys
i need some crucial advise about releasing some equity from my house as i am emigrating.I am thinking of remortgaging my house and taking out some equity and change the mortgage to interest only for a lower monthly repayment.
Because i will be renting the property out while i am away,will i need to be a buy-to-let mortgage or a usual residential mortgage as it's my only property?

i am kind of a bit confused at the moment as i am trying to find the best way to take out from equity from the house and minimise my mortgage repayments as i will have to involve an agent to manage the rental.
i would much appreciate any advise that anyone may have
kaz

HelpWhereIcan

What is the extra money to be used for?

Where are you emigrating to?

How long will you be going abroad for?

If permanantly, you will be restricted to buy to let and to those lenders who will allow you one of their 'offshore' products.

If for a few years, you will have a good choice of lenders on buy to let and you may find that your current lender will allow consent to lease.

Speak with a whole of market broker, or post more here and someone will be able to point you in the right direction.

Hope this helps

kaz

Hi there
thanks for the quick reply
i am looking of any extra of £11000 .

Because i couldn't sell the house and time is running out.My intention is to rent the house out and put back on the market a few months before the end of the tenancy agreement.

HelpWhereIcan

I will really depend on what the £11000 is to be used for and the answer to the other questions I asked, but you will find that lenders are generally unwilling to provide short term finance and will normally have a problem if they discover that you will be selling the house within a short period.

kaz

Can they become funny about taking the money for travelling?Do you have any advise on consent-to-let?

missile

£11000 is not a lot but do not forget the set up and survey costs. Buy to let will be at a higher rate. As you are looking for a short term, you may find a personal loan secured on your home is a better option.

However you must advise your current lender and insurer of your plans.

kaz

i guess that it won't make much difference if a take a personal loans or not..well it will make a difference , the interest will be higher,
Or, i could take out the equity and tell them about the plans a couple of weeks after the equity is release;)

missile

There are some very attractive personal loan rates on offer. I think you may find they are similar to rates for buy to let and you would save mortgage arrangement and survey fees.

A quick troll on the nett, will give you quotations for both options.

Best to be honest. You may think it clever, to tell them after arrangement. Not so clever if they then withdraw mortgage as you have broken their T&Cs

kaz

i think that you have a very good point there

itsakidsworld

Why not call into a local IFA and tell that all the plans you have. They will look at your situation and would be able to point you in the right direction.

Make sure they are independant though, as they will then be able to gain access to hundreds of products, as opposed to be tied to one bank with one product.

It sounds straight forward what you want to do and sounds easy enough to set up. Buy to let rates are very competative at the moment so you may find a lender who is the same or even better than what you have now.

Your situation changes completely if you let the house first and then re-mortgage as at the moment its your main and only home so you can almost do as you please. However, when the property becomes a buy-to-let, any additional cash taken from the equity has to be re-invested into another buy-to-let or you get taxed on what you have taken out. So re-mortgage first.

missile

kaz wrote:

i think that you have a very good point there

That is what the button is for :EasterBun

Glad to be of some help :A