mortgage & letting

a36_2

In short I bought my house 5 years ago (just before values tanked), then 2 years ago had an offer to work abroad & took it. My lender allowed me to let for 2 years on existing deal. (rent is £300/month lower than mortgage repayment, but I can deal with this). current mortgage is repayment. I am still abroad.

The 2 years is almost up and I am concerned they will force me into a buy to let deal with much higher costs, I could not afford to do this.

Tried selling the house with no luck and according to nationwide calculator there is a very small amount of equity in the property (<5%).

Ideally I would like to switch to interest only, until I can sell or keep everything as it is.

If they decide to try and get more out of me monthly then I will fall into arrears within 1 year

I don't want to contact them yet in case it triggers them into remembering they have given me permission to let (I am hoping they will forget and just let things stay as they are)

Any advice? Should I go to a financial advisor to represent/advise me? If so any recommendations?

Thanks

a36_2

Anyone?
*bump*

Wh05apk

Normally once your deal finishes they will allow you to stay on SVR, the exception being The cuddly friendly building society Nationwide who will increase your rate!

1984ReturnsForReal.

I would just keep quiet for now.

a36_2

Thanks for the replies.

This is N'wide so I am expecting a 1.5% bump (which I just learnt about), but I hope at the 3 year point, which gives me a year to sell. I will just keep my head down for now.

If there is no pick up in the market it will be very difficult to sell in a years time (which is what I suspect), I will have to figure out what to do then.

Wh05apk

Even with the 1.55 loading, it will still be cheaper than most btl mortgages.

property.advert

But the overlooked fact is that the lender is not facing a greater risk. If anything, their risk is reducing. Thus, to increase any rate is perverse and illogical.

a36_2

Yes it is frustrating. I had to move to keep working, so now lumbered as a BTL landlord as I was in neg equity, and now will soon facing higher mortgage repayments (yes they are cheaper than a typ BTL mortage).

Thing is these higher costs put a higher load on me which doesn't help. It's just unlucky (and bad judgment buying when I did). In fact they could put a 3% adder to the mortgage and there is nothing I could do - just more likely I won't be able to meet my repayments.

Oh well!:(

Wh05apk

property.advert wrote: »

But the overlooked fact is that the lender is not facing a greater risk. If anything, their risk is reducing. Thus, to increase any rate is perverse and illogical.

I am sure if the op used that argument, then Nationwide would probably change their policy.

The loading is partly because rental properties are more likely to go into arrears, but also because they view it as a semi-commercial transaction.