Fixed deal ending soon but relocating later this year

mrjp84

The current fixed deal on my mortgage is expiring in August.

I have accepted an overseas job offer and plan on relocating sometime in Q3/4. My wife and I would like to keep the house as a buy to let while we are away — ideally with a view to holding it as a long-term bet on the U.K. property market.

Our mortgage advisor has recommended renewing to a 2-year fix with our existing lender and seeking consent to let, because:
=Our current lender is highly unlikely to agree to CTL for a 5-yr fix. 

=Any other lender would require us to live in the property for 6 months before agreeing to CTL. 
=This avoids us falling on to the standard variable rate. 

=We can cancel — at a price — if needed. 

CTL is not guaranteed and I am worried about facing the hassle of remortgaging again (from overseas) in 2 years. I would happily go straight into a BTL mortgage, but I understand we would have to move out immediately and I do not want to move before we are ready!

I would really appreciate any advice or thoughts on this situation, and the best possible way forward. 

blue_max_3

Why would you have to move out if you took a BTL mortgage? You'd be paying more for your mortgage, but not sure you couldn't live there?

mrjp84

I thought the same thing — surely if you’re living there yourself it decreases the risk for the lender anyway — but have been advised this isn’t possible!

dunstonh

If you are looking for certainty, I would be more inclined to let it go onto the SVR in August and then look to remortgage to a non-residential mortgage as you get closer to the point of leaving.

Thrugelmir

While you are concerned with the hassle of remortgaging from overseas. Are you not equally concerned with dealing with a difficult tenant in the same circumstances. 

davidmcn

blue_max_3 said:

Why would you have to move out if you took a BTL mortgage? You'd be paying more for your mortgage, but not sure you couldn't live there?

It's a pretty normal condition that you can't live there. Think the concern is of the lesser regulation for BTL than owner-occupier products.

mrjp84

dunstonh said:

If you are looking for certainty, I would be more inclined to let it go onto the SVR in August and then look to remortgage to a non-residential mortgage as you get closer to the point of leaving.

Yes, this seems sensible. The increased amount we’d pay under the SVR is still a fraction of the potential termination/early repayment penalty on a fixed deal. 

baisui

Just to say I'm in a similar situation:
https://forums.moneysavingexpert.com/discussion/comment/77321100#Comment_77321100

adrian84

I am in almost identical situation, I would like to buy a property residential and in 3 years time to move abroad and switch it to a buy to let, i would have enough equity to do that, the problem and biggest concern: is it a straight forward couple of clicks or my affordability will be tested? My income abroad will not be sufficient to be eligible for a buy to let product.
Is getting a fixed 3 year residential and after that 3 years changing to a fixed term as long as possible for example 10 years fixed buy to let while i will still have uk sufficient income the best option? And what do lenders ask for when i tell them i want to change it to a buy to let? Will i be "forced" to rent a property in uk so it will justify the need of a buy to let?
Hope someone with strong experience in this area can shed some light.
Thank you

adrian84

I forgot to mention the reason for buy to let 10 years fixed is  to avoid affordability checks at remortgage when the fixed period ends, if thr lender proposes new deal and it is easy to accept it without affordability checks would be better a smaller fixed period.

adrian84

Anybody would like to share experience ? Please?