Remortgaging to Take Money Abroad

Don_Logan1

Hi, I've just moved abroad and still own a house in the UK. I am considering buying a place here but the only way i'd be able to afford the deposit would be to borrow some money on my house in the UK.

Is my mortgage provider in the UK likely to lend more money in order to put a deposit down on a property overseas? We have around £150k equity in the house and would like to take 50k out.

I'm really wondering if it might be better to tell them that the money is for something else such as paying off debt/ home improvements/ new family cars, etc.

The house is currently rented out privately as I wasn't initially sure whether I wanted to stay out here, so wasn't prepared at that point to go onto a buy to let mortgage. If they are prepared to lend the money, then i'm happy to tell the provider that the house will be permanently rented out in future and will go onto a buy to let if necessary. I don't really want to be in the position however where they say that I can't have the money 'and by the way, you're now going on a buy to let and your repayments are jumping up a couple of per cent'.

Please, I don't want to hear about the rights and wrongs of not declaring that the house is rented out whilst not being on a buy to let, etc. I'd rather do everything above board, but would appreciate some advice on how best to go about talking to the mortgage company.

Thanks in advance.

Caz3121

many lenders will give consent to let on a residential mortgage for a time period that would not require you to go onto a BTL rate however only your lender would be able to confirm if they do and would authorise any additional borrowing
If you were looking for a new lender you would likely be unable to hide the fact you were no longer resident as your income I assume will not be UK income

davidmcn

Don_Logan1 wrote: »

Is my mortgage provider in the UK likely to lend more money in order to put a deposit down on a property overseas?

Is your overseas lender likely to be happy with your deposit coming from a loan rather than your own resources?

Don_Logan1

Caz3121 wrote: »

many lenders will give consent to let on a residential mortgage for a time period that would not require you to go onto a BTL rate however only your lender would be able to confirm if they do and would authorise any additional borrowing
If you were looking for a new lender you would likely be unable to hide the fact you were no longer resident as your income I assume will not be UK income

Thanks. I won't be hiding the fact that i've recently moved abroad. I'm sure they will want to see payslips, etc. before lending any more money so will see my foreign address and the currency shown, etc.

If they ask what's happening with the house at present I will possibly tell them that a relative is looking after it and making some home improvements on it while I decide on whether i'm coming back to the UK or staying out here. I'll obviously mention that it will be rented out soon if I decide to stay overseas and if they lend me any more money.

Don_Logan1

davidmcn wrote: »

Is your overseas lender likely to be happy with your deposit coming from a loan rather than your own resources?

Thanks. I hadn't thought of that but I can't see them caring that the money is from a loan on an existing property in the UK. The rental income will cover the mortgage (and the increased repayments once i've borrowed more money on the house) so I can't see this being a problem.

davidmcn

Don_Logan1 wrote: »

Thanks. I hadn't thought of that but I can't see them caring that the money is from a loan on an existing property in the UK. The rental income will cover the mortgage (and the increased repayments once i've borrowed more money on the house) so I can't see this being a problem.

It might not be an insurmountable problem, but they'll almost certainly be interested in where your money has come from and what other financial commitments you have. What happens if the rental payments dry up?

MortgageMamma

You would be wise to do to affordability assessment


1 assuming you rent out your UK property and capital raise for the deposit for your foreign property. Then the mortgage and upkeep on your second property needs to be taken into account.


2. Assuming the above, but also if the property was not rented out. You need to be certain you can cover both mortgage payments comfortably and meet the expense of the commitment of being a landlord. A good landlords insurance policy will help with tenant emergencies such as burst pipes and boilers etc but the general maintenance you will still have to pay for.


The real pivotal factor here is your income, as your level of income is crucial as to whether you can afford to capital raise, afford to have a second mortgage (even though the property will be rented most buy to let lenders insist a landlord has a minimum income now), and afford the repairs and responsibilities of being a landlord.


Don't be afraid to ask your lender for temporary consent to let, not many of them refuse such requests - they need the mortgage paid at the end of the day. Some lenders will increase the rate others will keep it the same.


I'd suggest you get some professional advice before making any decisions.


Best regards

MM

Thrugelmir

Don_Logan1 wrote: »

I'm really wondering if it might be better to tell them that the money is for something else such as paying off debt/ home improvements/ new family cars, etc.

You live and work abroad though..........

Don_Logan1

Thrugelmir wrote: »

You live and work abroad though..........

Yes, I am aware of that.