Mortgage renewal

Erbee

My son took out a mortgage on a property 7 years ago. the LTV is 25% approximately.  He moved to Vietnam 5 years ago. In October 22 he booked 2 years fixed and thereafter variable. the covenants from his bank simply state that he must maintain repayments which he has done. In fact never missed a payment. also £10k was repaid last year. The bank has suddenly switched him to their wealth management team for international and said that as his income is insufficient, they can't renew the mortgage.
He is a part time teacher and has set up a start up business. The tenor of the mortgage is 30 years. Can a bank really having committed to provide a mortgage change the goalposts like this when there has been no change to his circumstances. Payment of the mortgage comes from the renal income he earns

marcia_

 'Cant renew the mortgage'
is he currently trying to remortgage? 

DE_612183

is he on a buy-to-let mortgage?

Keep_pedalling

Almost certainly can as your son also seems to have moved the goal posts (assuming this was a residential mortgage). is anyone living there?

kingstreet

Consent to let terms can be varied at any time and aren't an entitlement. Many lenders charge a fee, a higher rate or both. Some won't permit a rate switch, a new product while a property isn't owner occupied.

I'm sure an expat BTL option can be found.

Hoenir

Erbee said:

Can a bank really having committed to provide a mortgage change the goalposts like this when there has been no change to his circumstances. 

When did inform the lender he was longer a UK resident nor living in the property?  Complete change of circumstances. Not all mortgage lenders offer BTL. 

Flugelhorn

was the mortgage BTL?? if not then not surprised they have pulled the plug

Erbee

Thank you for your comments so far. This has  been a residential mortgage from the outset. Since moving abroad the property has been occupied by the same tenants. The bank is well aware that he lives overseas. 2 Years ago he received consent to let, The bank said that after the two years it would need to be buy to let. The mortgage agreement or amendment when he took the two year fixed does not mention this. Simply that it is two year fixed and then variable rate thereafter

ACG

Erbee said:

Can a bank really having committed to provide a mortgage change the goalposts like this when there has been no change to his circumstances. 

Erbee said:

2 Years ago he received consent to let, The bank said that after the two years it would need to be buy to let. 

The bank gave your son 2 years. The 2 years are up. 
It can hardly have come as a surprise. 

They "committed" to giving him 2 years on consent to let. They are now saying move back in or move the mortgage from a residential mortgage with them to a BTL with them or move it elsewhere. There are better lenders out there for CTL but they are not being unreasonable in my opinion. 

His circumstances hace changed. He no longer lives in the property or in the UK. 

Hoenir

Erbee said:

2 Years ago he received consent to let, The bank said that after the two years it would need to be buy to let. 

Consent to let is granted entirely at the discretion of the lender.  The time is up. Why hasn't your son taken action earlier? 

Erbee

Basically because the agreement signed in 2022 does not stipulate anything other than 2 year fixed and then variable for the following tears. There is no conditionality included in the agreement