This doesn't seem entirely fair, but....

tdh739

Hi all, I wonder if you could lend me the benefit of your knowledge and wisdom...

I'm currently serving abroad with the RAF. Serving; as in not my choice, but that's another matter.

I'm trying to get on the ladder, found a house I'd like to live in and have had an offer accepted. However at this point in time of course I'm unable to live there. As such I think it'd only be sensible to let it out, so that I'm not paying to live in two places, one of which would be vacant.

Whilst I'm not trying to play the system or get something for nothing, my mortgage adviser insists that since I intend to let the property for the time being, I MUST get a BTL mortgage, rather than a residential.

I appreciate his stance, since to do otherwise would be fraud. However I can't shake the feeling in my gut that there is something unjust about forcing me to take a hit on mortgage deals whilst I'm serving the government abroad.

In your experience are there not lenders who accept the circumstances of armed forces personnel and mitigate the disadvantage faced? This is my first property, and whilst I am letting it out, I don't realistically have any choice, so should that be held against me?

I'm just gathering information at this stage such that I can enter any future discussion for an informed position, therefore any suggestions would sincerely appreciated.

Cheers :beer:

Leon_W

Your mortgage adviser is correct.

If you intend to let the property then you need a BTL mortgage as any application for a residential mortgage will immediately be weeded out on the basis that how the hell can you live there when you are working abroad. (Although by fighter jet the commute could be shorter than it currently takes me to get to the local shops !).

This also goes for applications on houses that are miles away from where you live on the mainland. Lenders may need confirmation of a new job in that area for example. Lenders are not daft.

Buy to let rates can be pretty competitive so don't dismiss it out of hand.

Of course, if the situation were the other way round, you had a residential, got stationed abroad and wanted to let temporarily, then most lenders are quite accomodating.

All the best.

HelpWhereIcan

I managed to get a case like this through with the Halifax. They did it on the basis that the customer was only going to abroad on a short term basis (2 years) and that he was paid in £ and had a UK employer.

Do not see how your situation would be any different - unless there is something I am not aware of - but would think that quite a lot will depend on your income, deposit and loan amount needed.

There were actually a few lenders who said that they would (in principle) agree the loan, but at the time the Halifax offered the best deal forthe client.

I would get a second opinion - hope this helps.

tdh739

Thanks for both of your inputs. Of course you can understand why I'm still in two minds about whether to go in guns blazing or accept the (potential) inevitable.

For info my deposit would be 15% and income would more than cover the repayments: Loan = 2.3xIncome

I hear what you're saying Leon, and agree if I'm honest, it just seems unfortunate that my options are:

a) BTL and suffer because public duties force me to live away from my home
b) Don't get on the property ladder

Anyone got a violin?

I will apologise for my grumbling tone, I really don't intend to be such a bore. I will also concede that expecting private enterprise to have compassion for public services is ridiculous, and as such am exploring BTL deals. I'm just exploring possibilities

The vote stands 1-1 for residential vs BTL. One more would put my mind at ease.

Thanks, your time is appreciated.

herbiesjp

I have had a couple of similar cases, and they were agreed on a residential basis.

A while ago now so cant remember the lenders, I can try and dig them out, but I'm sure they were high street names

They were agreed on a case by case situation, everything expalined 100% up front, and the lender was happy to agree the mortgage

HTH

PBA

Don't know about other lenders, but the Abbey would certainly lend on a residential basis for someone living in employer provided accommodation. The mortgage would be based on your income, so you couldn't take potential rental income into account, but it sounds like you'd be well within salary multiples anyway.

tdh739

That's actually a double bonus, because the rental income would be no more than 100% of the repayments, possibly less pending an interest rate increase (has anyone mentioned this yet? :P) making a BTL mortgage difficult enough.

UK007BullDog

The Woolwich will lend on it on a residential basis. Try your local Woolwich or Barclays to get all the info. Obviously you will have to prove that you are serving abroad, which should not be a problem for you.

silvercar

normally you would be liable to capital gains tax on the sale of a property that is not your principal private residence but, as a member of the armed forces, you get an exemption. So not all bad news.