rootsandwings Posted August 11, 2013 Report Share Posted August 11, 2013 We will be renting our house in UK while we are in Perth, and although we don't intend to return to the UK we do not want to find ourselves forced to sell, just in case we do want to come back here. We intend to be renting in Oz for a long time (we have no intention yet of buying a house in Perth), but are having trouble finding a suitable mortgage which will allow us to let our UK house: we have informed our current mortgage provider that we are emigrating and they will only allow us to let the house for two years, and after that we must make other arrangements. So either we sort out something now or wait two years and risk there being no expat mortgages on offer. Anyone with similar experience of this situation? Quote Link to comment Share on other sites More sharing options...
Perthpilotandnurse Posted August 11, 2013 Report Share Posted August 11, 2013 No experience of it, but........... change your mortgage provider. It has nothing to do with them about how long you rent your house out for, it's your house !! I would seriously look at changing provider to someone who will give you a buy to let mortgage, bearing in mind that it is likely that the BoE base rate will stay at 0.5% for the next 3 years after Mark Carneys press conference the other day. Quote Link to comment Share on other sites More sharing options...
jonandsarah Posted August 11, 2013 Report Share Posted August 11, 2013 you will need to change to a buy to let mortgage and also will need to change your buildings insurance to a let property prices will depend on what kind of tenants you have in the property best not to let DSS I was an insurance broker in the uk and premiums were much high if they would even insure best to go with professional tenants. Sarah Quote Link to comment Share on other sites More sharing options...
hawks Posted August 11, 2013 Report Share Posted August 11, 2013 I have a mortgage with Woolwich (ex standard life), when I moved out of the house to buy a second place, I applied for consent to let, which they granted. The second mortgage is with RBS. When I moved to Aus, I told both mortgage providers. Both gave me consent to let, and changed my contact address to Aus. I now rent our both of them and the banks are fully aware, and both are aware I live in Australia. I got the feeling that once you have secured the mortgage, as long as you keep paying the repayments, they don't mind whose living in the house or where you live. Quote Link to comment Share on other sites More sharing options...
rootsandwings Posted August 11, 2013 Author Report Share Posted August 11, 2013 Thanks for your responses, but this is the problem: every buy-to-let mortgage provider we have contacted stipulates that we must be UK residents. We cannot find a mortgage product that is suitable for Brits who will be living abroad but want to rent out their (only) house in the UK. Many mortgages also require that you go through a broker and we find it difficult to fully trust brokers and financial advisers when we have essentially been advised by them to just "not tell" the mortgage provider that we will not be resident in the UK, while suggesting mortgage deals that inevitably entail big fees and withholding of the truth, something that does not sit easy with us. I cannot believe there is no option out there? We have good credit, our LTV is acceptable... We have good professional tenants who will be signing a 2-year tenancy agreement and in all likelihood will want to stay on for many years.... Does NAB offer mortgages for Brits on their UK homes, once they have been resident in Oz for a certain length of time? Quote Link to comment Share on other sites More sharing options...
elfie Posted August 11, 2013 Report Share Posted August 11, 2013 You will need buy to let you will also need landlords insurance as let property will not protect you enough for what you require. You will have to submit your tenancy agreement to you mortgage lender - with your tenants names signature ect including clause 1 and 2 why they need this who knows. Possibly different lenders require different clauses. Totally disagree re DHSS Tenants - not all people should be tarred with the same brush! CIA give very good landlords cover and will allow DHSS tenants to obtain a lease. Find a good accountant who you can deal with via emails who can help you with your UK tax returns ensure you fill in your NRL 1 forms ect your letting agent will also need a copy of this for tax purposes. They can deduct tax from rental income if you wish but you will still need help to fill in your tax return annually. Are you coming here on a PR visa? If not using 457 your a temp resident and still classed as UK resident Quote Link to comment Share on other sites More sharing options...
rootsandwings Posted August 11, 2013 Author Report Share Posted August 11, 2013 If not using 457 your a temp resident and still classed as UK resident Hmmm... don't think so. If (for example) I work full time in Aus and spend fewer than 91 days in the tax year, then I am automatically non-UK resident. See attached, http://www.hmrc.gov.uk/international/rdr3.pdf You could be talking about citizenship. UK mortgage companies seem to be concerned about residency though. Anyone had experience of an Australian bank, such as NAB, offering a BTL mortgage on a UK property for 457 or PR visa holders? Quote Link to comment Share on other sites More sharing options...
travelchic Posted August 11, 2013 Report Share Posted August 11, 2013 No experience of it, but........... change your mortgage provider. It has nothing to do with them about how long you rent your house out for, it's your house !! I would seriously look at changing provider to someone who will give you a buy to let mortgage, bearing in mind that it is likely that the BoE base rate will stay at 0.5% for the next 3 years after Mark Carneys press conference the other day. Its not really your house until you've finished paying for it so I think they can stipulate their rules. Have you asked them what would happen if you found that after 2 years you weren't ready to return. What would the bank do. How would they deal with that situation and what are their expectations of you in that situation. You need to be prepared for future situations. Debs Quote Link to comment Share on other sites More sharing options...
rootsandwings Posted August 11, 2013 Author Report Share Posted August 11, 2013 Thanks Debs... it's exactly this situation in 2 years time we are trying to pre-empt and prepare for as best we can... our current lender (understandably) can't give any guarantees, but having spoken to them I think they would be reasonable and consider the circumstances at the time... the reason for the OP was to try to find out what options we might have if they weren't keen to carry on allowing us to rent out... Quote Link to comment Share on other sites More sharing options...
travelchic Posted August 11, 2013 Report Share Posted August 11, 2013 Because lenders have been cautious over the past few years because of the economy they have been quite strict. I think in a couple of years time when economy picks up there will be a lot more borrowing meaning more competition. They may allow you to carry on with your arrangement for fear of you taking your custom elsewhere. Just my opinion mind. Debs Quote Link to comment Share on other sites More sharing options...
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