Help with my Northern Rock Mortgage

ben1007

Hi,

I am about to accept a job offer in australia on a 457 business long stay visa. I have a complicated mortgage with Northern Rock in that it is made up of a 67k mortgage and a 20k loan (I think I took some bad advise from a finance guy when buying my house) in total it is for 87k and the house is now probably worth 95-100k. The rate is high around 5 and a half percent and I think he said I was tied in for 3 years (I can provide full details).

I don't want to loose the foot I have in the housing market now and think it would be sensible to have something to come back to, so I am looking to rent it out.

Do I need to change my mortgage to a buy-to-let? If so would it have to be with the same lender? how much extra would I have to pay in interest fees?

is there any advise on how I go about doing all this? I don't have much time.

Any help gladly appericated.

Ben
???

payless

You could ask them for " constent to let" on current mtg

ben1007

what is consent to let?

grv2004

Hi Ben
I work for a mtg brokers (ones who dont mis sell !)

Basically, you can either ask for consent to let with Northern Rock which basically you ask permission to rent it out, or you can remortgage with a company like BM solutions (part of halifax) to a buy to let mortgage. If you do this, you must be able to acheive the rental figure for the desired loan amount i.e Natwest formula to see what your rent needs to be to get loan is below -
loan amount x 8% = amount
amount divided by 12 = req rental figure.
£63,000 X 8% = 5040
5040/12 = £420pcm!

In my experience you are better off moving away from N.R and that way you could probally release some equity in your home and have some spare cash!

Hope this helps
Gem

payless

Hi Ben
I work for a mtg brokers (ones who dont mis sell !)
.............................

probally release some equity in your home and have some spare cash!

ps did you see the total LTV
??

ben1007

Hi what was meant by the last message all I got was a "?" in the post?

Thanks for the other post but my mortgage is weird it consists of a loan of 20,000 plus 67,000? The current rate is 6.59%

payless

the   ??  was all there was meant to be -
after the extract  quote from the other poster.
Not sure why they felt the need to state " ones who dont mis sell !"

Plus then to mention releasing equity!!

---

£87K on val between £95-100K is higher than most lenders would consider on B2L

If they would also generally require a higher rent than mentioned   and usually incur swap fees  on top of any fees to leave current lender ( account closing fees- PLUS are you still tied in ??)

Wheather a new lender  rate would be much difference depends on what NR would charge you- you would need to ask!

Also not many lenders would take on a new B2L if they knew you were leaving the country (however I do know that the lender mentioned does consider this)

I'm not a great lover of your existing lender either, but sometimes its the best of 2 evils

( obviously not having all the facts , these are general comments and not a personal recommendation)

ben1007

Hi Sorry for the delay mortage consists of

Secured loan = 65,106.78
Unsecured loan = 21,535.23
Total = 86,642.01

I have been onto NR outstanding bal is £85,851.53

in order to settle I would have to pay admin charge of £225 and £500 to cover a kick back I had to cover costs.

Total settlment = £86,576.53

I have looked around and average price in my area for my type house is between 95k and 100k

payless

have you asked about a consent to let

ben1007

Hi, yes have asked - and they have sent some forms they say they would need to see that the renatl payments would cover the mortgage and to be honest I won't be able to get £596 in rental - probably between £500 and £550. :-[

payless

are you sure they aren't just asking for it to cover the interest on the secured part
ie say 6.5% of the £67K / 12