Re-mortgage, but going travelling, need help!!

Matt_F

Hi

Basically i need some advice before talking to the lender

I am currently on the standard rate which i have been for a while and have owned my house for 9 years. I am going travelling in november this year for a minimum of 12 months. Now to make it simpler I can stay with my current lender and get a new fixed deal for 2 years and then get a consent to let. Now if this is for a maximum of 12 months, and then during when i'm travelling I ring up to see if i can extend the consent to let for an extra few months, how often more than not would they agree to it?

Also what are the risks etc if i didnt say anything about extending it and just leaving it until i do come back. would they be on my case about returning home

Any advice would be great as i can go into the phone call with a bit more info of what is best to do and where i stand with it all

thanks

Matt

kingstreet

Depends totally on the lender concerned.

You would need to ask them.

Matt_F

ok, thanks for that. just wondered if anybody knew before i asked them, that way i have some info to go into the call with.

just wondered what the potential consequences are if i decided stay for an extra few months and not say anything (as obviously cant ask them that in person)

kingstreet

Matt_F wrote: »

ok, thanks for that. just wondered if anybody knew before i asked them, that way i have some info to go into the call with.

just wondered what the potential consequences are if i decided stay for an extra few months and not say anything (as obviously cant ask them that in person)

Do you actually know this lender usually grants consent to let?

Which lender is it, please?

Matt_F

its with halifax and i have spoken to them briefly about a consent to let letter and they said its fine, but not when taking out a new deal

I will be speaking to them, just would have helped if i knew some more before the call

i do have a family member who is a solicitor and a mortgage adviser so i think its best to speak to him before halifax

Thrugelmir

Matt_F wrote: »

its with halifax and i have spoken to them briefly about a consent to let letter and they said its fine, but not when taking out a new deal

Fully understandable why. The best advice is to be honest with them. Are they aware you intend to go travelling?

Are you dependent on the rental income to service the mortgage?

Your tenant needs also to be aware of your plans. Many people won't be interested in a short term let. Also extending for a few months at short notice may not be easy as you envisage.

Matt_F

yes i will be dependant on the rental as the income as all the money i will save will keep me travelling for as long as possible

ideally i would like to have a tenant for 18 months, but if the maximum is 12 months on the mortgage deal then may cause an issue, but i guess that will be discussed with halifax

MortgageMamma

You don't say how much equity you have in the property - if its more than say 20% you could consider a buy to let mortgage but most have fees added to them - it would however leave to travel as long as you wanted (providing you have a good tenant). Also bear in mind that if your mortgage is on capital repayment then your rent may not be enough to pay it every month. You need to leave wiggle room for property repairs and maintenance, and you will need specific landlords insurance and a letting agency to manage it for you whilst you are away. All adds up.








I suspect you may find it difficult to get a tenant for such a short term if you are upfront about the length of time you wish to rent. Not being upfront is morally questionable as your tenant will need to find deposit, rent in advance, moving costs and all the little extra costs of moving house. If they are not wealthy enough to buy it could come as a blow to them when they get asked to move out 18 months down the line. You don't say what type of property you have but if you live near a Uni maybe short term student lets could be an idea?

Matt_F

have just over 25% in equity and its a 2 bedroom semi detached

i can get a mortgage for around £400 pm, and i could potentially rent it out for £575pm. I can also leave the fridge/freezer, cooker and washing machine in to help as they are only 1 year old. Its an option should they not want to spend lots on furniture

i have enough people who can look after the house and do repairs etc if necessary. My dad will be able to help out on repair costs if that arrises

Like i said i would want to rent it out for 18 months minimum really, 2 years would be great. I will just have to speak to Halifax and see what options i have

I live right near a hospital so was going to see about maybe putting an add up there for junior doctors etc who may want to rent

MortgageMamma

The junior doctors is a good idea, and lets face it they won't need housing benefit and won't actually be home a lot, and are probably used to moving around - you could probably get more for it if you rented to more than one person but kept it under the local HMO limits. Don't forget you will need landlord insurance, and landlords home emergency cover is a good idea as well if you are abroad then any floods/burst pipes/electrical emergencies are dealt with in your absence. Its worth comparing this to the cost of using friends and contacts, as if the property is uninhabitable because of an emergency YOU have to pay for alternative accommodation for your tenants. Landlords cover can insure you against this.

Matt_F

thanks for the help and info, i will take all into consoderation