Need advice about Buy To let -remorgage

ar73n3
ar73n3 Posts: 3 Newbie
First Post First Anniversary Combo Breaker
in Mortgages & endowments
I bought my house 10 yrs ago and currently the value is in circa £230k. My morgage provider is Nationwide and the outstanding morgage is currently in circa of £73k. Last year in April I moved to France and the house has been renting since. I informed the Bank and all was ok. The rule is 6 mths after the tenancy they will increas an additional 1% from fix deal of 4.09%. My deal runs out at the end of July this year. I tried to sign on a new deal however Nationwide said I am not allowed to.If my property is currently being let out, I am unable to change my deal or select a new one once it expires. Once my deal expires, I will be placed onto the Standard Mortgage Rate +1%. I then tried to find a new morgage lender however due to my non resident status, no lender is willing accept my application. So I am basically stuck. It does not seem fair. Can anyone help with my situation? Any advice will be greatly apprecaited. Many thanks in advance.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ar73n3 wrote: »
    It does not seem fair.

    There's nothing unfair. The rules haven't changed at all. Are you intending to return to the UK?
  • ar73n3
    ar73n3 Posts: 3 Newbie
    First Post First Anniversary Combo Breaker
    not at the moment. it seems unfair because i am paying an additional 1% on top of whatever rate they are charging. And I can't even sign for a new deal after my current deal expires nor can I sign with a new lender. That is unfair for me.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ar73n3 wrote: »
    it seems unfair because i am paying an additional 1% on top of whatever rate they are charging.

    That's a commercial interest loading that's been in place for some years.
  • martinlewisjunior
    martinlewisjunior Posts: 94 Forumite
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    "Moved to france" well... sell the house and let someone who lives and works in the UK have it. Unless you have intention to move back?
  • Mortgage_Adviser
    Mortgage_Adviser Posts: 374 Forumite
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    There are expat mortgages available in the market. However this is a specialist product and as so would have higher than usual rates.

    There are rates available on expat mortgage market which would be circa 1.5% lower than what you are currently paying.

    The inportant thing however is that you would only be saving circa £75 per month with such a small mortgage, however the costs for arranging the mortgage which inlcude broker fee. lender fee, valuation fee etc are going to be 2-3k so it could take you a good 3-4 years just to get your fees back.
  • ar73n3
    ar73n3 Posts: 3 Newbie
    First Post First Anniversary Combo Breaker
    Thank you for your response. The standard rate I will be on when my deal expires is 3.99% and plus 1%, I will be paying 4.99% instead of 5.09% the current rate. So it is slightly less however it!!!8217;s the uncertainty that concerns me. Perhaps I just try to pay toward my equity as much as possible from now on.
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