change of mortgage circumstance

andrewif

hi everyone

I am just in the final stages of buying a house. I have a good deposit and have fixed for 2 yrs. I would really like to move to Australia for a few years in the not too distant future, ideally 1 yr.

I have a few questions I would really appreciate anyone's advice on:
1) If I go within two yrs, I am presuming I should inform my mortgage company. How likely is it they will inforce a higher rate?
2) When the term is over, what are my options? It will be my only house in the UK. I really want to avoid a buy to let if at all possible.
3) If I have to B2L, if I return to the UK within the term of that mortgage, can I revert?

Apologies if the questions are a bit mickey mouse. This is my first time buy and the thought of having to change life plans to please a bank worries me!

thanks in advance

Andrew

Thrugelmir

I would deal with the matter in the future when your plans are more concrete. The terms under which they will allow you to let the property will be those at the time, not necessarily those applicable now.

beecher2

I take it you're planning on renting the house out when you're away? No-one knows what your bank's criteria will be in a year's time but you will have to ask them for permission to let. Obviously it is no-one else's business why you're buying now, but buying a house is a major responsbility and not something I'd be doing if I was going to the other side of the world for years.

CloudCuckooLand

25% deposit? If not, don't start to plan on the basis you will rent it out. One day down the road, you will need 25% equity for CTL/BTL.

1) No, if you want to leave it empty. Yes, if you want to rent it out. Your insurer needs to know if empty. LL insurance if not.
2) To avoid BTL, don't let it out. Keep it empty.
3) Maybe. Depends on lender. Depends on tenant and tenancy terms how soon you can get them out.

Why buy right now, just to leave "for a few years"..? What if it turns into forever..?

Bottom line appears to be you want an investment to chug along while in Oz? So, a BTL is not a bad thing, because having no UK income would mean you were unable to remortgage at the end of two years, anyway, if you don't come back. It would be either sell or BTL.

You have a trusted agent in mind to let the place while in Oz?

Wh05apk

CloudCuckooLand wrote: »

25% deposit? If not, don't start to plan on the basis you will rent it out. One day down the road, you will need 25% equity for CTL/BTL.

QUOTE]


Not sure what that means, most lenders will allow permission to let without having to have 25%.

Most lenders will allow you to keep your existing deal, and when it finishes allow you to go on their SVR.

When you return, simply advise them you are no longer renting, and they should allo you back on a deal, or if you have proovable income, you can remortgage.

CloudCuckooLand

In light of the OPs "for a few years" comment, I'm looking ahead to the time after he's got CTL mid-way thru the first deal, to then not be returning to the UK, and being told by his lender that CTL cannot be extended anymore (that might be 2 or 3 years ahead), so BTL would apply, except there is insufficient equity...

Wh05apk

CloudCuckooLand wrote: »

In light of the OPs "for a few years" comment, I'm looking ahead to the time after he's got CTL mid-way thru the first deal, to then not be returning to the UK, and being told by his lender that CTL cannot be extended anymore (that might be 2 or 3 years ahead), so BTL would apply, except there is insufficient equity...

But most lenders will allow it to sit on SVR, so not an issue, unless they specifically want to move it to a BTL, which as they will then effectively be an expat would be very difficult anyway.

CloudCuckooLand

Indefinite CTL once on SVR...that's useful to know - you are supposed to learn something new every day!

Of course, how many people will be happy on SVRs in 2 or 3 years time, is another kettle of fish.

andrewif

all

thanks for your advice. You are right to question my motivations but, as pointed out, these are largely based on my recognition to have an investment or track on the UK property market.

The big lessons I took are largely to settle on what you know and can get now and address any changes in the future where markets are likely to be different. I can also just convert to SVR but am very nervous about this in the current climate!

thanks again

Andrew

Wh05apk

andrewif wrote: »

all

thanks for your advice. You are right to question my motivations but, as pointed out, these are largely based on my recognition to have an investment or track on the UK property market.

The big lessons I took are largely to settle on what you know and can get now and address any changes in the future where markets are likely to be different. I can also just convert to SVR but am very nervous about this in the current climate!

thanks again

Andrew

In that case, go for a longer term deal now?