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Btlers Can't Mew

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I am currently working abroad and have let my house in the UK. Playing by the rules, I informed my building society of this.

I have just received a letter of acknowledgement from them. In this letter, they say

"The Society is now unable to consider any further lending for home improvements or otherwise whilst the property is not occupied as your main residence. We will also not be able to allow the account to transfer to any new preferential interest rate schemes whilst the property is let".

This doesn't affect me as I have no intention of MEWing and have a very good tracker mortgage for the duration. But it did surprise me as I had the impression from what I've read on here, that BTLers bought a property, waited for their equity to increase, then MEWed and bought another etc. It seems it is not that easy, unless this is something new.

BTW, they also charged me £100 "admin fee" for telling them about the change.

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Not sure about your experience but I'm sure lot's of BTLers MEW (not that I ever have in the strictest sense). More likely, at the end of a good deal they look for another one, then apply for the biggest mortgage they possibly can - which is likely to be higher than the previous one with the previous lender. Money can then sit in the bank waiting for the next opportunity to arise, with the cost being interest out - interest in until the money is re-invested.

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Not sure about your experience but I'm sure lot's of BTLers MEW (not that I ever have in the strictest sense). More likely, at the end of a good deal they look for another one, then apply for the biggest mortgage they possibly can - which is likely to be higher than the previous one with the previous lender. Money can then sit in the bank waiting for the next opportunity to arise, with the cost being interest out - interest in until the money is re-invested.

There is also the cost of the remortgage - usually a few hundred pounds after adding in valuation fees, "arrangement fees" and various admin fees (e.g. a fee for the handover of the title deeds).

But I suspect you're right - that's probably how they do it. Unless other building societies are more lenient than my own? (Norwich and Peterborough).

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I am currently working abroad and have let my house in the UK. Playing by the rules, I informed my building society of this.

I have just received a letter of acknowledgement from them. In this letter, they say

"The Society is now unable to consider any further lending for home improvements or otherwise whilst the property is not occupied as your main residence. We will also not be able to allow the account to transfer to any new preferential interest rate schemes whilst the property is let".

This doesn't affect me as I have no intention of MEWing and have a very good tracker mortgage for the duration. But it did surprise me as I had the impression from what I've read on here, that BTLers bought a property, waited for their equity to increase, then MEWed and bought another etc. It seems it is not that easy, unless this is something new.

BTW, they also charged me £100 "admin fee" for telling them about the change.

good tracker mortgage ey? how much abouve the base ?

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I am currently working abroad and have let my house in the UK. Playing by the rules, I informed my building society of this.

I have just received a letter of acknowledgement from them. In this letter, they say

"The Society is now unable to consider any further lending for home improvements or otherwise whilst the property is not occupied as your main residence. We will also not be able to allow the account to transfer to any new preferential interest rate schemes whilst the property is let".

This doesn't affect me as I have no intention of MEWing and have a very good tracker mortgage for the duration. But it did surprise me as I had the impression from what I've read on here, that BTLers bought a property, waited for their equity to increase, then MEWed and bought another etc. It seems it is not that easy, unless this is something new.

BTW, they also charged me £100 "admin fee" for telling them about the change.

Like many bears, you are confused & wrong. You have an OO mortgage. Your lender tells you they won't lend you more while you're not in occupation. Simple.

You haven't got a BTL mortgage now that you sent a letter off to your lender. Did you really think it was that simple?

Get yourself a real BTL mortgage if you need to get any more funds drawn against the property.

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Like many bears, you are confused & wrong. You have an OO mortgage. Your lender tells you they won't lend you more while you're not in occupation. Simple.

You haven't got a BTL mortgage now that you sent a letter off to your lender. Did you really think it was that simple?

Get yourself a real BTL mortgage if you need to get any more funds drawn against the property.

OK, thanks TTRTR, you have cleared that up. No need to be rude about it though.

It doesn't matter to me but I bet it has come as a nasty surprise to some. No doubt the proper BTL mortgage is much more expensive.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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