Posted on 23 March 2010 by Nic
In 2005 I bought a property in the UK but now live in Singapore and the property is rented out. I put a 50k deposit down and took a mortgage of 120k. I estimate that the house is now work 20-30k more now than when I bought it.
My question is this. I'd like to pull about 35k from the property to pay off all outstanding UK debts. Can I do this while I don't live in the country? My salary is UK equivalent of around 60k PA.
I think you are going to find it difficult to achieve what you want at the moment. The maximum loan to value lender's will consider is typically 70%, with a few who will consider 75%. On a property worth £200,000 this would give you a mortgage of £150,000 tops and I think you would most likely end up looking at a mortgage of around £140,000. Neither of these figures will give you enough to clear the outstanding debts you have in full.
However, it would still be worth considering the options and I recommend that you speak to an independent mortgage broker with experience of arranging mortgages for UK residents based overseas.
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