UK Remortgage Advice Request from Overseas - Help!

adamsfo

Hi -

I'm currently living outwith the UK and want to remortgage as my fixed rate on my place in Edinburgh is up in July. I therefore need to do this remotely. I wondered if anyone could help.

I know rates are low at the moment and want to avoid getting hammered by bank charges for remortgaging. I'm with Standard Life Bank and want to change to another fixed rate. As I'm out of the country I have to do this remotely so staying with the same provider would make sense (b/c of red tape) - however they are not that competative!

Can anyone recc a provide or service that could help?

Cheers,
A

Conrad

Unlikely any other lender will take you on without up to date and active UK credit history. Furthermore they will question the fact the property is not lived by you, so its either empty thus posing security risks, or tenanted in which case only a B2L mortgage is suitable and even then that could be difficult given your residing abroad.

herbiesjp

adamsfo wrote: »

Hi -

I'm currently living outwith the UK and want to remortgage as my fixed rate on my place in Edinburgh is up in July. I therefore need to do this remotely. I wondered if anyone could help.

I know rates are low at the moment and want to avoid getting hammered by bank charges for remortgaging. I'm with Standard Life Bank and want to change to another fixed rate. As I'm out of the country I have to do this remotely so staying with the same provider would make sense (b/c of red tape) - however they are not that competative!

Can anyone recc a provide or service that could help?

Cheers,
A

Not strictly correct.

Whilst BoE is at 5% - actual lending rates offered by institutions have been increasing due to the credit crunch.

What deal has Standard Life offered? It could well be they are your best bet.

There used to be lenders happy to agree these deals no problems, however with the current climate they can get a little more picky about which cases they want to accept or not.

DO you let out the property? There are lenders happy to agree these, depends a lot on the figures in question though and what Standard Life have already offered.

Have you maintined ties in the UK?

adamsfo

herbiesjp wrote: »

Not strictly correct.

Whilst BoE is at 5% - actual lending rates offered by institutions have been increasing due to the credit crunch.

What deal has Standard Life offered? It could well be they are your best bet.

There used to be lenders happy to agree these deals no problems, however with the current climate they can get a little more picky about which cases they want to accept or not.

DO you let out the property? There are lenders happy to agree these, depends a lot on the figures in question though and what Standard Life have already offered.

Have you maintined ties in the UK?

Thanks for this reply.
Std life are around 5.85 currently. However, remort. rates are over 7% - which makes a big difference to my monthly payments.
I do let out the property through a management company. I absolutely maintain ties in the UK (all my family is there apart from me) - why do you ask?
My concern is that moving lenders will incur hassle BUT staying with Std life while an easier option doesn't make financial sense given the hike in rates. It would be my 3rd straight mortgage product with them on the same property but this doesn't seem to make a difference.
The other issue is that I'd like to take the mortgage over 15 or less years so I can get it paid off quicker.
Any thoughts?
Thanks,
A

herbiesjp

What is the property value?
What is the mortgage amount?
What is the rental income?

Keeping ties in the UK, means having a good credit score still in the UK which will mean a potential re-mortgage being easier

adamsfo

Hi - answers below:
:money:

What is the property value: 165000
What is the mortgage amount? 91000
What is the rental income? 475 pm

Keeping ties in the UK, means having a good credit score still in the UK which will mean a potential re-mortgage being easier

herbiesjp

You are very tight with the rental coverage with lenders at the moment.

A few might agree the mortgage for you, rates around mid 6%s so lower than the 7% rates offered

Geoff13_2

Are you looking to come back to the UK in the short/medium term? Lenders like Halifax will consider it if you're coming back within the next two years.

adamsfo

Thanks Geoff. Yes, I am looking to come back but a) how do i prove this and b) what happens if I don't come back for other circumstances (can't get a job, get a better offer in the US) etc.

adamsfo

Thanks. The actual income is 550 per month put a property mgm firm takes 10% from the income per month. So the figure is a little higher. It is tight however but I am fully prepared to augment the rental income with other money from my salary to make the payments each month.

herbiesjp

A lender will use the £550 figure on which to base a decision which will make it a little easier.

Again not all lenders will allow you to "top up" any rental shortfall with you own earned income

However, based on the higher rental figure, you should not need to do that

Are you based in the US? Have you thought about a mortgage in the currency that you are paid in?