which campany will allow consent to let without btl mort?

hotwheels

we're moving to australia next year, however we may only be there for 2 years. currently we pay a nice low 2.75% with lloydstsb and they wont simply give us consent to let for 2 years, they want to move us to their btl mort at 4.99%
we have been told when we move back to blighty we will loose the old 2.75%
Our morgage is for only 52k and house is worth 150k+
I was wondering-as we also have a small amount of savings if any of the 'one' accounts allow btl. I noticed Virgin One Account allows consent for a 'short' time, but how 'short' it short?

If we do end up staying in Oz, is there a way you can apply for a btl mortgage without having to come back to this country?

kingstreet

Consent to let is for those who become accidental landlords with existing residential mortgages whose circumstances change.

As you are looking to remortgage with the intention of letting you are looking for a formal BTL product.

hotwheels

Sorry i gave the impression that we want to re mortgage, however we will become 'accidental' landlords, not intentional-as a money making scheme ,as it is our home that we will be reluctantly letting out for a year or two to cover the mortgage, so we know that the repayments will be met. we will possibly be coming back to the uk after 2 years.

Thrugelmir

You would need to be with a new lender for at least 6 moths before applying for consent to let.

Do you have family or friends to manage the property in your absence?

holly_hobby

CTL is always for a temporary period - 3 yrs is circa the term when the lender will look for to you to return to the property as your primary residence, sell it, or if still let - change to a BTL (either with themselves of an alternative lender).

CTL is by express permission of the lender, there really isn't a minimum term before which it isn't considered, but unless there is an exceptional unforseen circumstance that could be presented to the lender if you've only been resident a short period - 6 mths plus, is really the minimum when the lender wouldnt consider your resi app to have had the intention of a back door BTL.

If your CTL request was refused, then yes you would need to tsf to a BTL mge to let, as to rent without the permission of the lender, would be in breach ofyour mortgage terms & conditions, which can result in their requirement of immediate repayment upon their discovery of the breach.

If you try and source an alternative BTL lender, whilst you are perm resident OZ, you will struggle, as you won't be classed as an ex-pat unless you have a determined date of UK repatriation with your employer, and are out there with your role with a UK or Multi National company.

So, if you think you're going to be out there a while, then I would source a BTLwhilst you are still perm in the UK (ie before you go out there).

You'll have to also put in place arrangements in your role as an absent landlord, together with consideration of your tax status and residency, and payment of taxation on net (of permitted allowances, reliefs and deductions) rental income.

Hope this helps

Holly

hotwheels

holly_hobby wrote: »

CTL is always for a temporary period - 3 yrs is circa the term when the lender will look for to you to return to the property as your primary residence, sell it, or if still let - change to a BTL (either with themselves of an alternative lender).

CTL is by express permission of the lender, there really isn't a minimum term before which it isn't considered, but unless there is an exceptional unforseen circumstance that could be presented to the lender if you've only been resident a short period - 6 mths plus, is really the minimum when the lender wouldnt consider your resi app to have had the intention of a back door BTL.

If your CTL request was refused, then yes you would need to tsf to a BTL mge to let, as to rent without the permission of the lender, would be in breach ofyour mortgage terms & conditions, which can result in their requirement of immediate repayment upon their discovery of the breach.

If you try and source an alternative BTL lender, whilst you are perm resident OZ, you will struggle, as you won't be classed as an ex-pat unless you have a determined date of UK repatriation with your employer, and are out there with your role with a UK or Multi National company.

So, if you think you're going to be out there a while, then I would source a BTLwhilst you are still perm in the UK (ie before you go out there).

You'll have to also put in place arrangements in your role as an absent landlord, together with consideration of your tax status and residency, and payment of taxation on net (of permitted allowances, reliefs and deductions) rental income.

Hope this helps

Holly

thanks holly , food for thought re not being an employed person in the uk.
we would let it through an agency, as being so far away would be a logistical nightmare for something as simple as a leaky tap to fix.
Not looking forward to renting my home out, all i hear is bad stories of people not having any respect. hope we find a decent couple!

brit1234

What about selling, then splitting the money between 2 high interest bank accounts. That way you can buy if you come back, if you stay you have money for a house in Oz.

michaels

brit1234 wrote: »

What about selling, then splitting the money between 2 high interest bank accounts. That way you can buy if you come back, if you stay you have money for a house in Oz.

transaction costs are hardly negligible

Thrugelmir

michaels wrote: »

transaction costs are hardly negligible

Nor is managing a property from Oz.

Poor letting agent or a bad tenant may prove costly.

As huge reliance on both.

harpoboy

brit1234 wrote: »

What about selling, then splitting the money between 2 high interest bank accounts. That way you can buy if you come back, if you stay you have money for a house in Oz.

With the housing market picking up, and the government's Help to Buy scheme about to kick in, stepping off the housing ladder now may not be the best thing to do.

Repost your question with a more meaningful title, such as "CTL for Virgin Money?" and you may receive more cogent responses.

As for renting out while you are away, go for it! Find a decent agent, and stay in touch with them and your neighbours and it should be fine. Do your due diligence first on both the EA and the prospective tenants.

Live is never without risk - enjoy your time Down Under and relax in the thoughts of someone else paying your UK mortgage for you while you are enjoying the sun!

holly_hobby

harpoboy wrote: »

"Repost your question with a more meaningful title, such as CTL for Virgin Money?" and you may receive more cogent responses.

Hardly relevevant, given they neither have a Virgin Money Mge, nor are gte'd to be accepted for one.

harpoboy wrote: »

Live is never without risk - enjoy your time Down Under and relax in the thoughts of someone else paying your UK mortgage for you while you are enjoying the sun!

Probs are if they don't source a BTL mge before they go, they will be scuppered when CTL is withdrawn and for a new mge app,as they are neither classed as ex pats, armed forces or UK resident - which may result in a forced sale.

Careful consideration is reqd before they go, which has been the basis of previous posters responsible comments.

Holly