moved abroad-cant get uk mortgage!

crvar

Hello, my husband and I are spanish but lived amd worked in the uk for many years. We bought a property 10 years ago and we lived in it until now.
We are trying to get a mortage to pay off a second charge on the property, to a housing association. It is not shared ownership as we own 100%, but we have to give them 25% off current property value,to pay off the second charge amd allowing us to rent the property out.
We have more or less paid off the other 75% in 10 years (the original term was 25). The property is in a good location and we would get 200% of monthly mortgage payment with the rental income.
My husband works for an international well known company.
We dont have any other debt.

So in paper we are a very safe bet!

However it is being impossible for us to find a lender that will give us 110k of a 330k property.

Some because we are residents abroad,some because we want it to pay off a second charge,some because we have non uk (but european passportz)

Our only option at the moment seems to be selling the property. But we are completely devastated as this was such a good investment and we have worked so hard to pay so much of the mortgage already.
We maintained the property empty for two years but we cant really continue to afford that.
So posting here in case somebody could give any ideas that we have not looked at.

Lungboy

I'm probably being thick, but if you need to pay off 25% of the value, why are you trying for a mortgage that's 33.3% of the value?

crvar

Because we still have some balance on the existing mortgage ( about 10% of the initial amount)

Icequeen99

If you are resident abroad, who is living in the property?

IQ

ACG

This can probably be done, depending on how long you have been out of the UK will dictate your options.

If you have been gone more than a month or so then I can only think of 2 lenders.

Speak to a broker as it is probably not going to be easy.

crvar

The property is vacant, we use it for holidays but would like to rent it out,and we cant because we cant get a mortgage to pay the second charge and buy to let.
we have been gone for 2 years,although coming back frequently and everything here on our name, utility bills,councl tax,open uo accounts credit cards etx

crvar

Have spoken to several brokers amd no one can help!
We are already wondering what are the implications of renting out without permission!but really dont wamt to go down that route...

silvercar

crvar wrote: »

Have spoken to several brokers amd no one can help!
We are already wondering what are the implications of renting out without permission!but really dont wamt to go down that route...

That would be breaking the terms of your mortgage and the housing association rules.

Most likely reaction if the lender found out would be increasing your mortgage rate by ~1% (though there will be people on here who will tell you that the sky will fall in).

The housing association is local I assume and more likely to find out? They could call in the second charge.

crvar

The thing is we want to rent it out in a transparent way but they are blocking us from doing so. They wont give consent,and they wont lend us money to pay off the second charge so we can rent it out.they are haply with the numbers but we dont pass the test because we are not british citizens or because we are not uk residents.

Thrugelmir

crvar wrote: »

but we dont pass the test because we are not british citizens or because we are not uk residents.

Seems reasonable in business terms. Chasing foreign debtors is both expensive and time consuming.

ACG

crvar wrote: »

Have spoken to several brokers amd no one can help!
We are already wondering what are the implications of renting out without permission!but really dont wamt to go down that route...

Keep trying, your options are very limited so most brokers are probably going to say no chance.

If you let it out and get found out you could find the lender calls in the loan and gives you 30 days notice.