BTL mortgage before moving overseas

hoyw65

Long time reader, but never used the forum before.

I expect having to move abroad by the end of this year and would like to rent my house. I understand it's worth making mortage arrangements before moving out of the country, as mortgages for people living abroad can get a little more cumbersome. My LTV is less than 50% so should be able to get a decent BTL mortgage. However, since I own only this property and also reside in it, I fear my bank would guess I'm moving abroad - as I wouldn't be able to give them my "new" residence address in case they ask.

Anybody come across this issue recently?

Thanks!

eddddy

As you say, some BTL mortgage lenders require you to be resident in the UK. But others seem to allow it.

But if you're planning to lie to your mortgage lender about your residency status in order to get a BTL mortgage - that would be both a breach of contract and fraud (which is a criminal offence).

hoyw65

Thanks for the clarity eddddy, this is exactly what I need.

However, given your response, I'm not sure I explained myself properly. I currently live in the UK, and intend to remortgage to a BTL this year. How's that a fraud If, in 2019, I move overseas?

davidmcn

hoyw65 wrote: »

Thanks for the clarity eddddy, this is exactly what I need.

However, given your response, I'm not sure I explained myself properly. I currently live in the UK, and intend to remortgage to a BTL this year. How's that a fraud If, in 2019, I move overseas?

Ok, in that case you'll also have the initial problem that BTL mortgages generally prohibit you from living in the property. Or are you planning to have a temporary address in the UK before you emigrate?

eddddy

hoyw65 wrote: »

However, given your response, I'm not sure I explained myself properly. I currently live in the UK, and intend to remortgage to a BTL this year. How's that a fraud If, in 2019, I move overseas?

Assuming the mortgage terms specify that you must be resident in the UK during the term of the mortgage...

If you take out that mortgage and agree to those terms, but in reality, you intend not to be resident in the UK in 2019, that is fraud.


If you take out the mortgage intending to be resident in the UK, but genuinely later changed your mind about being resident in the UK - that might not be fraud, but it would still be breach of contract.

hoyw65

Assuming the mortgage terms specify that you must be resident in the UK during the term of the mortgage...

If you take out that mortgage and agree to those terms, but in reality, you intend not to be resident in the UK in 2019, that is fraud.


If you take out the mortgage intending to be resident in the UK, but genuinely later changed your mind about being resident in the UK - that might not be fraud, but it would still be breach of contract.

Gotcha, thanks

hoyw65

Or are you planning to have a temporary address in the UK before you emigrate

Exactly right. The idea would be to get a short let for about 6 weeks, during which we can arrange the move, get all paperwork sorted and let the property

hoyw65

If you take out the mortgage intending to be resident in the UK, but genuinely later changed your mind about being resident in the UK - that might not be fraud, but it would still be breach of contract.

Oh, wait, now that I'm thinking - so what happens if that was the case? Would the lender prefer to terminate your mortgage even though you might be paying on time every month?

G_M

Why are you not applying to your current mortgage lender for Consent To Let?






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hoyw65

Why are you not applying to your current mortgage lender for Consent To Let?

Because that would only last for a year or less, and then (as per OP) I might have issues applying for a BTL from abroad