Moving to Canada - my mortgage

Ryano2801

I have recently been granted a visa to move to Canada, which means I will probably be leaving the country April/May next year.


I am currently in my 2nd year of a 5 year fixed mortgage deal on my first home and just looking for help!


I have informed the mortgage company and they have advised I can get a "consent to let" which sounds great, the downside is that they need my property to be worth approx. £685 per month, it's worth about £625 per month at most so that's a very unrealistic and unlikely option.


Second option is I sell the house and pay a fee for leaving my mortgage agreement early (approx. £1600), this is probably the most likely but I REALLY don't want to have to sell my house, getting back on the property ladder after leaving the country isn't the easiest thing in the world.


Third option is that I re-mortgage as a Buy to let, but I need to have 25% deposit for this and I don't have the equity in the house for that, that would also mean a £1700 fee as I would be leaving my agreement early.


Can anyone help with ways and means around this, if there is any? Obviously I really want to go to Canada but I really don't want to sell the house and without selling the house, the other options aren't feasible.


Thanks in advance for any help!

kingstreet

By how much would you need to reduce your outstanding mortgage for the £625 monthly rent to fit?

Paying money off the mortgage makes more sense than paying fees/charges.

Ryano2801

Hi Kingstreet,


So in essence are you saying I should overpay on my mortgage for 6 months until it brings it under the threshold?
I'm unsure if I'm honest on the answer to your question, but I can enquire and see what they come back with!


Thanks

kingstreet

There isn't another way to deal with this, off the top of my head.

foxy-stoat

Ryano2801 wrote: »

I REALLY don't want to have to sell my house, getting back on the property ladder after leaving the country isn't the easiest thing in the world.

Why you think that?

How long are you planning on leaving the country for and do you really want to be a long distance landlord, and can you cover the mortgage for 3-6 months with no rental income?

Ryano2801

foxy-stoat wrote: »

Why you think that?

How long are you planning on leaving the country for and do you really want to be a long distance landlord, and can you cover the mortgage for 3-6 months with no rental income?

Hi, Thanks for the message.


It could be 6 months, it could be 2 years, it could be forever, it's still very early stages and up in the air but that's why I'm just seeing what options I have.


The idea was that I would rent my house out, which would cover my mortgage which is approx. £550 per month, I would then get approx. £625 per month which would then cover my mortgage and cover estate agent fees and them looking after the property.. I have family that also lives close to the area so they can keep an eye on things for me also.
But obviously them asking for £685 per month is where that idea falls apart!


Thanks.

Ryano2801

foxy-stoat wrote: »

Why you think that?

Sorry, I ignored your first question - due to credit checks, address history etc. I would have no UK "footprint" anymore so to speak.
I have a sister who lives in Dubai who has the same problem currently

Ryano2801

kingstreet wrote: »

There isn't another way to deal with this, off the top of my head.

My concern with this, is having money saved up for Canada if anything untoward was to happen as well as making overpayments on my mortgage - I'm not sure I am financially able to do both!


I know this obviously isn't the mortgage peoples problem and this may have to be something I look in to more seriously, somehow!

Thrugelmir

Ryano2801 wrote: »

The idea was that I would rent my house out, which would cover my mortgage which is approx. £550 per month, I would then get approx. £625 per month which would then cover my mortgage and cover estate agent fees and them looking after the property..

What provision have you made for maintenance, renewals, void periods etc. £75 is a very thin starting margin.

Ryano2801

Thrugelmir wrote: »

What provision have you made for maintenance, renewals, void periods etc. £75 is a very thin starting margin.

I haven't made any provisions at the moment, it's still early stages but it is a new build house so I would like to think maintenance would be at a minimum.
I would also make sure I have a small pot of money that could be dipped in to, should it be required. However, it's irrelevant as I would need £685 a month for the mortgage company to allow it to happen anyway unfortunately.

Edi81

What about the income tax due?
Only part of the interest component is tax deductible.