should I tell lender that I am moving abroad

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    should I tell lender that I am moving abroad

    I have a property on buy to let mortgage. I am considering moving abroad for a while. Do I have to tell my BTL lender? When I googled, all the answers are about getting permit to let for your residential home. How about BTL provider? Is it true that I don't have to tell the lender as long as I have no difficulty in paying the mortgage? When I read the T&C, I cannot see anything obvious other than something like "we can withdraw this offer at any time if any information you have provided changes and such change affects our decision to lend".

    Another question is that will it be possible to remortgage BTL whilst I am abroad?

    #2
    Surely you have to give your lender and up to date address? Banks will all have a slightly differing policy with this sort of thing - why not ask your lender?

    Why do you want to be devious - honesty is the best policy? I'm sure there are many BTL borrowers who live outside the UK but as long as you are paying tax in the UK on the rental income and you have informed HMRC that you live abroard all should be fine. You are declaring/paying tax on the rental income aren't you?



    Freedom at the point of zero............

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      #3
      Why do I tell them if I don't have to? It is just like someone lossing job during the term of the mortgage. We don't have to unless we see difficulties paying off the debt. Is that the common sense or am I trapped in some kind of pitfall?

      For sure, I will update the address, inform HMRC, insurance etc..

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        #4
        When they find out ( most lenders subscribed to a change-of-occupation service) if you hadn't told them they'll likely assume you're up to no good.

        Will tenants have a working valid address in UK for the service of notices?
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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          #5
          It is important that you notify the lender of the change in personal circumstances, are you proposing to use another UK address for correspondence , if yes then provide it. I am presuming that you are engaging a Managing Agent to manage your property whilst you are abroad, should this be the case then please advise the lender. The same applies to the Insurance Company if the tenure is Freehold, if leasehold then the Agents for the Freeholder.
          You will also need to notify HMRC as your Self Assessment will probably need to be completed as an individual who presently is "Offshore" .

          Do not make any presumptions regarding your affairs particularly relating to the BtL. Play it with a straight bat and you will not get any subsequent hassle when you return and wish to rationalise your. affairs.

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            #6
            Yes , you can re-mortgage whilst abroad but you have to prove your job income and your rental property income. Its easier to remortgage whilst still here because you have job and can pay for the valuation etc.

            You can google search for expat - mortgage for UK property . Some banks like Barclays or Santander with offshore branch in Spain or Guernsey may offer mortgages.

            You have to ask their head office because managers in the local high st branches don' t have the information.

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              #7
              Gordon is correct so far as having the ability to raise a BtL mortgage whilst abroad; presently there are several lenders who will consider BtL mortgages for those abroad but the underlying theme is that one must demonstrate that rental income has been declared, have a main stream income , some restrict earnings from multi national firms but others seek evidence of employment and income being paid to a bank account. Furthermore one should continue having a UK bank account to receive rental monies. The main problem occurs where individuals are self employed whilst abroad and given that the likes of Experian or Equifax do not operate in the same way as they do in the Uk , credit data is sketchy at best so lenders can be pedantic in their underwriting.

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