What happens to mortgage if there's change to residency status?

static999

Anyone knows what happens if you have a BTL loan for say fixed 2 yrs. Then 1 yr later, moved to live in another country but opt to keep the property.

Ques are
1. are banks OK with changing of status ie from resident to non-resident? Would they make you pay extra fees or change your existing mortgage?
2. how easy is it for a non-resident (British citizen) to re-mortgage when the 2yr fixed term expires?

Any advice appreciated... thanks

56cheffy

If you have a BTL mortgage then YOU shouldn't be living in the property!

static999

Not living in the property! I'm looking to remortgage a BTL but want to know IF move to another country, what's to happen. Just trying to understand/and cover all possible scenarios.

herbiesjp

No problem at all really if you live in another country

There are plenty lenders that will look at this scenario for you - the lower the LTV the more options available.

Also, as ever, the rental income would need to be enough to cover the mortgage payment.

Doing one currently for a client in Bermuda! Some lenders will offer free legal fees and valuations, but it all depends on what you are looking for and if you meet the critiera of the lender at that point in time

static999

Thanks herbiesjp!

Is there any lender that don't like this type of customers? ie does non-resident have lots of choices to shop from?

Does lender mainly look at LTV? What abt your income?

When you earn pounds & buy in another country, you can basically get "higher loan" coz overseas lender convert your salary to the local currency. But, if you work overseas, when you convert it back to GBP, your income is going to look smaller. Would this affect/jeopardise your mortgage choices?

A_Nice_Englishman

The lender looks at the viability of your property rental business, not any other income you might have.. As herbiesjp says above, if the LTV and rental income vs mortgage are OK it should not be a problem.

static999

OK. I think I got it.

So, bottomline is always LTV & rental should always cover mortgage interest & you should OK in re-mortgaging irrespective of your status + income.

Thanks you herbie & Nice Englishman.

herbiesjp

static999 wrote: »

Thanks herbiesjp!

Is there any lender that don't like this type of customers? ie does non-resident have lots of choices to shop from?

Does lender mainly look at LTV? What abt your income?

When you earn pounds & buy in another country, you can basically get "higher loan" coz overseas lender convert your salary to the local currency. But, if you work overseas, when you convert it back to GBP, your income is going to look smaller. Would this affect/jeopardise your mortgage choices?

Being a more specialised request, the number of lenders able to help will be lower than a UK resident BTL, however there are still good optiosn out there currently.

They look at LTV and rental income and perosnal income - personal income just to make sure you meet their criteria on minimum income (currency conversion should still be ok as long as you meet the minimum income requirement)

A_Nice_Englishman

Didn't think they looked at other income, so thanks for pointing this out herbiesjp.

AndrewSmith

Although many BTL lenders do not 'use' personal income in the calculation for the mortgage many will insist that the applicant has a minimum level of personal income to ensure that the property could self sustain without the applicant having to rely on the income from the property to live.

There are however an increasing number of lenders who look at either rental, personal or a combination of the two incomes when underwriting the maximum lend limits.

chappers

herbiesjp wrote: »

Doing one currently for a client in Bermuda!

Not in St Albans is it ? My brother-in-Law is in Bermuda and in the process of remortgaging his flat in St Albans.