Getting buy to let mortgage

g_raju

Hi,

I currently live in my own house with almost 50% mortgage left to pay.

We are planning to move abroad and during that period I will not have any money coming in UK. I would like to rent out my home and I think the rental income would cover the mortgage payment.

Since I won't there any source of income in UK, I would like to find out if I can get buy-to-let mortgage? In other words, is the buy to let mortgage is only for individuals who have got other earnings in UK other than the rental?

I am still 7 months away from actual relocation and I would like to find out about this before I approach the banks for mortgage.


Thanks,

King.

luckyfool

Your current lender might consider a consent to let on your current deal. Equally if you are planning to definitely return to the UK within 5-10 yrs and go back to living in the property there is a lender that will consider doing it on a standard residential rate. Otherwise you would be looking for an ex pat buy to let deal which is definitely possible. If the rental stacks up fine then better to sort it while in the UK before going overseas. There are also offshore international banks that might do it on slightly cheaper buy to let terms once you are overseas, but typically they rely less on the rental income and they would typically look for you to be in a very good income position and able to afford any overseas living and accomodation costs plus the UK mortgage from your personal income excluding the rent.

You are best to speak to a good whole of market broker who can talk you through the different options.

dimbo61

You dont say how long you are moving abroad for ?
Now you may well be able to get consent to let from your lender and not have to change mortgage deal or lender at all ( saving you money ) some lenders allow up to 3 years on consent to let.
So ring them up in the first place ( you dont have to give your name ) and ask what is the policy with regard to consent to let.
Selling in the current climate may be difficult but renting may be an option.

g_raju

Thanks Luckyfool.

Dimbo61, We do not have a fixed plan as such. We want to live there for five years and depending upon other things we will take a decision.

I got my mortgage from FirstDirect. I will speak to them and take it from there.

Many thanks.

Thrugelmir

You need to factor in the cost of an agent maintaining the property and collecting rent, vetting new tenants etc. Let alone void periods.

Not easy to be a landlord when abroad.

g_raju

Hi Thrugelmir,

I thought about it and I am considering renting it out to a housing association, which will kind of guarantee rent every month for 3-5 years term. The rent paid by them would be lesser than the private rental market, but in a way it protects against unoccupied periods.

Any suggestions on this?

luckyfool

The danger as well is that tenants may not be vetted in the same way that would be possible with a quality letting agent. I would hazard a guess that there is a danger that the property would not be cared for or maintained as well as if you were letting to professionals etc.

Thrugelmir

g_raju wrote: »

Hi Thrugelmir,

I thought about it and I am considering renting it out to a housing association, which will kind of guarantee rent every month for 3-5 years term. The rent paid by them would be lesser than the private rental market, but in a way it protects against unoccupied periods.

Any suggestions on this?

As you are letting to the HA the rent is guaranteed. Irrespective if the property is let or not.

However many lenders will not allow you to do so. As they are unable to repossess the property due to the contractual arrangement between you and the HA. As you say on 3-5 year rental term.

While the HA is responsilble for day to day maintenance. Larger items such as boilers for example are still yours. So the HA will charge on these costs to you.

Your lender may well be your biggest hurdle to overcome.

g_raju

Thanks.

I spoke to my current lender and they are not for "content to let". Apparently I will have to try for expat mortgage and it is going to be difficult to get one if I decide to go with HA.

I want guaranteed rent and only HA can offer that but the issue is getting a mortgage. Very tricky!