How to remortgage whilst travelling around the world?

BigSmiles_2

Hi there, it would be wonderful if anyone could pass on experiences/suggestions about a future situation I will have

I plan to leave the UK in October 08 to spend up to 23 months in New Zealand, followed by some time travelling around Australia and Asia :j

My Mortgage is currently 5.49 fixed until February 09 with Northern Rock. I plan to rent the property out whilst away and contacted NR to ask for advice on how to do this/get their permission. I have since paid a £250 fee to them and they changed my mortgage so that I am permitted to rent my property out whilst I am away - but its not a buy to let mortgage, still just my own residentail one. I am tied in to my mortgage package and the penalty would be £1500 if I left the deal early.

The query is, how easy is it to change to a new mortgage product and/or provider at the end of my fixed period whilst I am out of the country? I will definately not be back in the UK for 2 years so would need to arrange it whilst I am away if I want a competitive deal. Plus i must enter NZ by Nov 08 as a condition of the working holiday visa that i have been granted so there is no way I can delay going to sort out a new mortgage deal. I received a letter from NR yesterday explaining that their mortgage products may not be competitive and encouraged me to look at other providers when my deal comes to an end.If I change providers though does this make the situation more complex to sort out from the other side of the world? Also it is likely that i will be travelling more than working so will not have payslips to provide, will this be problematic?

Any advice greatly appreciated :beer:

homer_j_3

You would have to remortgage onto a Buy To Let mortgage and you would need to find an adviser that would take care of things for you and could deal with you via email and post etc.

Whether you will qualify for a btl will depend on the criteria at the time.

What is your property worth
What is the size of your mortgage
What rental income will you get from it?

BigSmiles_2

Thanks for advice homer_j!!! Do BTLs tend to have much higher interest rates than a standard residential mortgage? Currently i have a £35000 mortgage, my property is worth £100 000, and i should get £450 month rental (before property management fees are deducted). I think i should hopefully be elegible for a BTL? Im just wondering though if it would work out as a similar payment to leave it on the NR mortgage after the fixed deal has expired? I think my NR mortgage documentation says that I will be on a loyalty rate - 0.25% less than standard variable rate?

Would it be best if i find a mortgage advisor before I leave, then when the deal expires ask them to seek out the best deal at the time? Would it then be a case of them posting out all documentation for me to sign? Im just a bit worried that once im away i will have very little with me in terms of paperwork, proof of ID ie utilitity bills etc.

Thanks so much for ya help!!!

homer_j_3

It could be an idea to find a broker before you go who will work with you as it will at least give you a chance to understand who you are dealing with and not be pressured into choosing just anybody.

With it being BTL, the figures should work on what you have said and the only paperwork you may need is proof of ID and residency for anti-money laundering purposes and possibly confirmation of the tenancy agreement but that can be easily sorted.

BTL rates will normally be priced slightly higher and it will be a case of seeing what rates are like at the time. With the value of the mortgage being quite low, you will be wanting to avoid as many fees as possible. NR do BTL deals so it could be as worthwhile just transferring there - but your advisor will check that out for you.

dekh

You may wish to consider getting certified ID to a solicitor/conveyancer before you go abroad.

homer_j_3

The ID is simple to sort. If the mortgage adviser sees the original passport before they leave, it can be used. The residency is a different matter as that has to be dated within the 3 months prior to the application. This can be overcome by providing a contact detail for the person who is receiving your redirected mail.

The applications will need signing and the person will need to be in contact with the adviser throughout the process. A fact find could be carried out before they left and then it would be a case of a quick confirmation to say - nothings changed, lets source.

The paperwork could be emailed in most situations and then returned by post so the inconvenience is kept to an absolute minimum.

It shouldn't be an issue whatsoever if the broker is flexible enough.

ZCC72

It may also be worth granting a trusted family member/friend a Power of Attorney to sign the documents on your behalf whilst you are away - unless you are going to be in one place long enough to sign the Mortgage Deed? The Attorney can then liaise with the lender & conveyancers on your behalf....

Hope this helps.

dekh

homer_j wrote: »

The ID is simple to sort. If the mortgage adviser sees the original passport before they leave, it can be used.

Hmm, I read a recent ruling on the Money Laundering rules don't think mortgage advisors or IFAs are allowed to certify documents.

Clergy, Doctors, Priests, Solicitors, Notary Whatsits, Police Officers if there are any left but not MAs and not IFAs.