Need advice about Buy To let -remorgage

ar73n3

I bought my house 10 yrs ago and currently the value is in circa £230k. My morgage provider is Nationwide and the outstanding morgage is currently in circa of £73k. Last year in April I moved to France and the house has been renting since. I informed the Bank and all was ok. The rule is 6 mths after the tenancy they will increas an additional 1% from fix deal of 4.09%. My deal runs out at the end of July this year. I tried to sign on a new deal however Nationwide said I am not allowed to.If my property is currently being let out, I am unable to change my deal or select a new one once it expires. Once my deal expires, I will be placed onto the Standard Mortgage Rate +1%. I then tried to find a new morgage lender however due to my non resident status, no lender is willing accept my application. So I am basically stuck. It does not seem fair. Can anyone help with my situation? Any advice will be greatly apprecaited. Many thanks in advance.

Thrugelmir

ar73n3 wrote: »

It does not seem fair.

There's nothing unfair. The rules haven't changed at all. Are you intending to return to the UK?

ar73n3

not at the moment. it seems unfair because i am paying an additional 1% on top of whatever rate they are charging. And I can't even sign for a new deal after my current deal expires nor can I sign with a new lender. That is unfair for me.

Thrugelmir

ar73n3 wrote: »

it seems unfair because i am paying an additional 1% on top of whatever rate they are charging.

That's a commercial interest loading that's been in place for some years.

martinlewisjunior

"Moved to france" well... sell the house and let someone who lives and works in the UK have it. Unless you have intention to move back?

Mortgage_Adviser

There are expat mortgages available in the market. However this is a specialist product and as so would have higher than usual rates.

There are rates available on expat mortgage market which would be circa 1.5% lower than what you are currently paying.

The inportant thing however is that you would only be saving circa £75 per month with such a small mortgage, however the costs for arranging the mortgage which inlcude broker fee. lender fee, valuation fee etc are going to be 2-3k so it could take you a good 3-4 years just to get your fees back.

ar73n3

Thank you for your response. The standard rate I will be on when my deal expires is 3.99% and plus 1%, I will be paying 4.99% instead of 5.09% the current rate. So it is slightly less however it!!!8217;s the uncertainty that concerns me. Perhaps I just try to pay toward my equity as much as possible from now on.