# BTL Mortgage on a UK property...



## Balla Boy (Jan 3, 2015)

Hi all, 

I've run a quick search, but can't find anything relevant. Hoping someone can offer some pointers. 

We relocated here 7 months ago, having secured a 12 month permission to let from our mortgage provider in the UK and rented out the family home. 

This is up at the end of the year, and I'm starting to look at options. 

The 1st would seem to be to transfer onto a BTL product in the UK, but I'm not sure how easy that will be given that I'm no longer employed in the UK, and things like bank statements, utility bills etc are rapidly aging. 

I understand that there are expat mortgages available from providers here, but again have no idea regarding eligibility criteria etc, and don't really know where to start in terms of looking at prices. I've yet to ID a decent market comparison site for UAE lenders. 

Can anyone offer any pointers that might save me some time in either of those directions?


Thanks


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## webmongaz (Feb 2, 2011)

I've been here 5 years and never changed my uk mortgage and have been renting out the property ever since via an agency. I have landlords insurance too. Never had any problems. As long as your mortgage is paid on time every month who's going to say anything? I'm sure others on here have done the same as me?


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## Yussif (Jul 27, 2015)

webmongaz said:


> I've been here 5 years and never changed my uk mortgage and have been renting out the property ever since via an agency. I have landlords insurance too. Never had any problems. As long as your mortgage is paid on time every month who's going to say anything? I'm sure others on here have done the same as me?


Yea my missus does the same with her house in London, no issues.

But if you were looking to change to another company all together, you would probably need some up to date docs, haven't you kept your UK bank account(s) alive? i can't see them needing anything more than the last 3 months bank statements with your address on it, you are still making repayments on the mortgage and pay the utility bills right? so you will be able to provide proof of those as well.

At the end of the day, people from all over the world invest in property in the UK so whether you live there or not shouldn't be an issue, if they can do it, why can't you?


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## Balla Boy (Jan 3, 2015)

webmongaz said:


> I've been here 5 years and never changed my uk mortgage and have been renting out the property ever since via an agency. I have landlords insurance too. Never had any problems. As long as your mortgage is paid on time every month who's going to say anything? I'm sure others on here have done the same as me?



Is that on a BTL? My understanding is that it's illegal to sub-let on the majority of UK mortgage products. 

It will only really become an issue in December when the term of my fix comes up. I don't really want to be paying SVR, so will be looking for a new product, at which point I'm anticipating a need for some level of disclosure. 

Have you changed mortgage product in those five years?


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## webmongaz (Feb 2, 2011)

Renewed mortgage but same product so just a simple resign no questions asked.


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## Balla Boy (Jan 3, 2015)

webmongaz said:


> Renewed mortgage but same product so just a simple resign no questions asked.



I may have shot myself in the foot by getting the permission in the first place then. I'll give them a ring and see how I go!

Thanks for the info.


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## WelshgirlinDubai (Apr 21, 2015)

Hi

We also advised the mortgage company as you need to declare yourself an overseas landlord to the HMRC to get tax relief on the rent - plus as you say you invalidate your mortgage if you don't tell them.

All that happens is that when your current deal runs out they offer you the BTL rates that are currently on offer. Your actual mortgage deal doesn't change and when / if you move back you just go straight back onto the homeowner mortgage rates.

We have changed since being here from being on a home owner fixed rate product to the best BTL fixed rate that they offered, which is probably a bit more than the best home owner rate, but not dramatically so - we are paying an extra twenty quid a month. We did all the initial discussions over the phone and the paper work was sent & returned via Shop & Ship- no need for any other documentation.

Of course if you want to shop around that might be more tricky - we took the decision that getting the best deal was less important than an easy life!


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## Stevesolar (Dec 21, 2012)

Balla Boy said:


> Is that on a BTL? My understanding is that it's illegal to sub-let on the majority of UK mortgage products.
> 
> It will only really become an issue in December when the term of my fix comes up. I don't really want to be paying SVR, so will be looking for a new product, at which point I'm anticipating a need for some level of disclosure.
> 
> Have you changed mortgage product in those five years?


Hi,
Illegal?
That's a strong word - are you sure? Or is it simply against mortgage company's lending rules?
Cheers
Steve


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## WelshgirlinDubai (Apr 21, 2015)

It counts as mortgage fraud apparently as you have broken the conditions of your mortgage contract. You could theoretically end up in court but it's more likely to put a big black mark on your credit rating


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## Stevesolar (Dec 21, 2012)

WelshgirlinDubai said:


> It counts as mortgage fraud apparently as you have broken the conditions of your mortgage contract. You could theoretically end up in court but it's more likely to put a big black mark on your credit rating


Rubbish!


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## WelshgirlinDubai (Apr 21, 2015)

Firstly, you will be committing mortgage fraud by deliberately staying on a residential mortgage while letting your property and not telling your lender. It's a lower level of mortgage fraud than the kind that usually sees people end up in court, but it means your lender could call in your mortgage - that is demand you pay it up in full and leave - at short notice and that you would have to tell any future lenders that this happened.


Source: Can I let my new house without telling my lender? | This is Money


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## Stevesolar (Dec 21, 2012)

Hi,
Yes but that is not "illegal" - it is simply against your contractural terms for the mortgage - big difference.
Mortgage companies are nervous if people rent out their properties without informing them for two reasons.
Firstly - they want to be able to repossess a house if the lender defaults - they find this much harder if it has a sitting tenant!
Secondly - greed - they want a financial slice of the action - hence requiring people to switch to a BTL mortgage at a higher interest rate.
Cheers
Steve


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## WelshgirlinDubai (Apr 21, 2015)

Not to be too contentious, but it is fraud as per the legal definition

: A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by* concealment of what should have been disclosed
*
Whether or not you would be taken to court is another debate - it appears unlikely.

And yes your reasons why are spot on.


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