Mortgage renewal whilst on a working holiday visa overseas

kahwilts

I'd appreciate your help and thoughts. 

DD's mortgage (not buy to let, but permission to let) deal is coming to an end (next few days) and she's overseas on a working holiday visa (in Australia) and not due to come back until October this year. 

She has a tenant in the property, all done correctly, with deposit in DPS and a tenancy agreement in place. Tenants wish to stay and have a TA until April next year. 

We have options to move on to the SVR, which is approx £200 pm more or to move to another rate. 

Question - how do we find the right mortgage. DD is on a casual contract but has been in regular employment since arriving in Aus. She has tenants covering the mortgage. I'm helping her manage the property but she has an agent who she also pays to have the EPC, gas safety checks in place etc. 

What's the easier way to go about this and what do we need to consider?

Thanks 

Hoenir

When does the consent to let period come to an end ?  As it stands options seem somewhat limited. 

kahwilts

Consent to let Hoenir said:

When does the consent to let period come to an end ?  As it stands options seem somewhat limited. 

Consent to let runs with the mortgage deal, so ending soon. 

DD queried if we should just switch to a new mortgage, not BTL. 

lfc321

Sounds like she will need to speak to the lender. She needs to know whether or not  there is a possibility to extend the consent to let into a new mortgage deal. That determines the options. 

Hoenir

kahwilts said:

Consent to let Hoenir said:

When does the consent to let period come to an end ?  As it stands options seem somewhat limited. 

Consent to let runs with the mortgage deal, so ending soon. 

DD queried if we should just switch to a new mortgage, not BTL. 

The default may well be SVR. If the lender isn't agreeable to extending CTL.  

lfc321

Hoenir said:

kahwilts said:

Consent to let Hoenir said:

When does the consent to let period come to an end ?  As it stands options seem somewhat limited. 

Consent to let runs with the mortgage deal, so ending soon. 

DD queried if we should just switch to a new mortgage, not BTL. 

The default may well be SVR. If the lender isn't agreeable to extending CTL.  

If the lender isn’t willing to extend the CTL she’ll almost certainly need to move onto a BTL mortgage. Even on the SVR she would be in breach of the conditions if she was letting it without the lender’s consent. 

So first job is finding out whether the lender will extend the consent to let. 

Hoenir

lfc321 said:

Hoenir said:

kahwilts said:

Consent to let Hoenir said:

When does the consent to let period come to an end ?  As it stands options seem somewhat limited. 

Consent to let runs with the mortgage deal, so ending soon. 

DD queried if we should just switch to a new mortgage, not BTL. 

The default may well be SVR. If the lender isn't agreeable to extending CTL.  

If the lender isn’t willing to extend the CTL she’ll almost certainly need to move onto a BTL mortgage. 

The lender might not offer a BTL mortgage. There's also the issue of meeting the underwriting criteria for a new BTL mortgage. The SVR is likely to be a penal rate of interest. The lender also has the right to impose a loading on top of this.