Posted on 11 May 2011 by Richard
I have a job offer in the far east and so want to rent out my house while I am away. My bank has offerered me a consent to lease, but for 1 year only so I would like an interest only buy to let. I have tried several of the larger banks but as soon as I say "I will be residing abroad" they tell me they cannot help. Is there a mortgage lender that will lend me on a buy to let if I live abroad.
There are banks who will lend to you on a Buy to Let basis whilst working abroad, especially if it your intention to return to the UK in the future. Each has their own criteria, such as you must work for an international company or it must be your intention to return within 10 years, but there are enough around that you should be able to find one willing to lend to you.
Your existing Lender has indicated that they will give their consent for 1 year, have you asked what happens at the end of this period? It might be that they will extend their consent for a further fee, want to transfer you on to a buy to let mortgage or insist your mortgage is repaid. It is certainly worth finding out because it would postpone or avoid any possible early repayment charges and could be a cheaper option than remortgaging. All new mortgage products come with an arrangement fee and these can be quite large on BTL products, in some cases 3.50% of the loan size. You may also have to pay solicitors and valuation fees depending on the product chosen, usually for a slightly higher interest rate you can get a deal with a free valuation and free legal service.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672, tell the consultant the date and title of your question and they will be able to advise you on your situation.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
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