Uk Mortgage Whilst Living In Thailand, Anyone Done This?

[slippery when wet]

Hi all.

I am looking at ways to return to Thailand with my family and was wondering if it would be possible to get a remortgage on my property in the UK whilst living in Thailand.

The reason for this being with the UK property market booming I was considering letting my house out and returning to Thailand, when I feel the need of some money release some of the equity that is currently tied up in the house as a form of additional income.

I was wondering with the salary so low in Thailand whether mortgage companies/ lenders in the Uk would consider lending you money solely based on the equity in your property as would not be able to support the normal annual income requirements.

Any advice would be appreciated.

Thanks slippery.......

[fat boy slim]

I have just arranged a mortgage on a property in England through a broker in Thailand. Its not straight forward but it is possible. I will email you seperately with my brokers details.

[loong]

By your post, I assume that you are in UK now and living at the property.

You can get a self certification mortgage through nearly every mortgage broker. I believe that Birmingham Midshires buiding society is amongst the easiest. Rates can be lower than MLR for 2 years then 1.5 % above. you can get interest only loans. Penalty for settlement in the first 2 years.

Self certification means that some people fib about their income and no broker should advise you to lie, but it does happen. If you arrange a mortgage thru a broker expect fees and valuation to total about 1000 pounds

Then some people emigrate and rent out the property but forget to inform the Lender, this is very naughty. Of course the lender doesn't really care as long as all the payments are made on time.

If you rent your property, do not forcast income based on12 months occupancy. Remember that you will maybe have to pay an agent. Remember that an agent, by law, if he is aware that the owner resides abroad, has to deduct tax and forward to the Inland Revenue.

Also don't forget that you have an emotional attachment to your property, whereas tenants will not! Be prepared for some not too pleasant surprises.

Good Luck

Loong

Edited December 30, 2006 by loong

[glenbat]

Hi Slippery

I'm due to renew my mortgage this year, and am hoping to get a decent fixed rate for 5 or even 10 years with a view to letting it out and hopefully making the leap across to LOS.

I guess you could remortgage as a Buy-To-Let and do it all properly, although I'm unsure of the tax/legal implications of living abroad...

I'm hoping to let it within the next 2 years long term and not have to worry about the mortgage on it too much until its up for renewal

[expatno1]

Hi Slippery,

We are a Bangkok based company run by Brits, we specialise in providing mortgages for expats with existing property holdings outside of Thailand, i will email you seperately further information.

cheers

expatno1

Hi all.

I am looking at ways to return to Thailand with my family and was wondering if it would be possible to get a remortgage on my property in the UK whilst living in Thailand.

The reason for this being with the UK property market booming I was considering letting my house out and returning to Thailand, when I feel the need of some money release some of the equity that is currently tied up in the house as a form of additional income.

I was wondering with the salary so low in Thailand whether mortgage companies/ lenders in the Uk would consider lending you money solely based on the equity in your property as would not be able to support the normal annual income requirements.

Any advice would be appreciated.

Thanks slippery.......

[fisherd3]

The big problem with having mortgages in a different currency to the security (i.e.house) is exchange rate, you could get into some serious trouble if they started moving significantly, this is the reason Brits have historically been disuaded from taking out U.S. $ mortgages where the interest rate has usually been much lower than the U.K..

[4u2mad]

<br />Hi all.<br />I am looking at ways to return to Thailand with my family and was wondering if it would be possible to get a remortgage on my property in the UK whilst living in Thailand.<br />The reason for this being with the UK property market booming I was considering letting my house out and returning to Thailand, when I feel the need of some money release some of the equity that is currently tied up in the house as a form of additional income.<br />I was wondering with the salary so low in Thailand whether mortgage companies/ lenders in the Uk would consider lending you money solely based on the equity in your property as would not be able to support the normal annual income requirements.<br />Any advice would be appreciated.<br />Thanks slippery.......<br />

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[4u2mad]

<br />

<br />Hi all.<br />I am looking at ways to return to Thailand with my family and was wondering if it would be possible to get a remortgage on my property in the UK whilst living in Thailand.<br />The reason for this being with the UK property market booming I was considering letting my house out and returning to Thailand, when I feel the need of some money release some of the equity that is currently tied up in the house as a form of additional income.<br />I was wondering with the salary so low in Thailand whether mortgage companies/ lenders in the Uk would consider lending you money solely based on the equity in your property as would not be able to support the normal annual income requirements.<br />Any advice would be appreciated.<br />Thanks slippery.......<br />

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dont quit job b4 remortgaging. use this income for remortgage. most lenders dont mind if u let, but ask. you could extend term for lower repayments, use some of rent for payments and suppliment income in thai. if ur over 50, could u take early retirement + portion of rent to ease the way. oh dont forget insurance on buildings is higher if you rent, shop around. buy to let mortgage costs more from what i see. you can apply to inland revenue for tax exemption number, in which case you are paid gross, remember u can claim back for all repairs + maintenance, possibly alterations to make rentable , if required. dont forget gas + electric safety certs. my local uni does a unilet scheme, although a bit below market rental, its gaurenteed for the 10mth rental term. they also have an insurance in the deal and routine maintenance. as its a student let, there's no council tax due, and utilities, except water+ sewerage are on them. i also get the house back for july/august,do tx return, repairs etc.

i did this emigration thing to the us many years ago, and compared to thai it was a breeze, older, but not wiser!

[london]

Hi Slippery,

You seem to have been given above the correct advise....and one or two good contacts.

Please do take note of what Fisherd3 has said.

I have taken out mortagages in the UK to buy in Thailand, but using only the UK property as security (as the UK banks are not at all enthusiastic about using overseas security). I have geared very conservatively, so as to not encounter any issues with currency fluctuations, and also made sure that the rental on the properties in the UK covers the re-payments.

If you can do this you will be fine.

Go for it !! and Good Luck !!

[torrenova]

There was a fly by night guy advertising on Pattaya Telly last year trying to get people to do this. No office, only a mobile number but Howard of Pattaya City News fame interviewed him in somewhere like a hotel foyer. Guy has a shit suit, looked like an ex car salesman, right shady character. I emailed Howard but he was getting paid so screw the public.

Most of these people know little more than they read on the net and are the same as the "great"endowment salesmen from the late 1980's early 90's. Big commissions, then sod off.

[GuestHouse]

If you plan to do ANY finance deal based on your UK property, then my advice is NEVER EVER DO THE FINANCE DEAL WITH ANYONE OR ANY BANK IN THAILAND.

As for your particular plan, I think it would be a very good idea to talk to a 'fee paid' finacial advisor in the UK to get an idea on exactly what is best for you now and long term.

Unless you have other long term savings/pensions etc, then taking money out of your main savings has long term risks.

A) You may be jepourdizing your future retirement.

You are financing your living off money that you will be repaying at UK interest rates.

C) The rate you pay back at may vary wildly with exchange rates.

Money to enjoy life in Thailand now may seem important, but saved/investment return money in retirement is a necessity. Don't draw down on the equity of your house and your long term financial security without very careful consideration of good professional advice.

'fee paid' finacial advisor = Someone you are paying for finacial advice (is not trying to make money out of selling you a deal - usually a professional accountant.

[Hamster]

I am in the same boat as Slippery,

I left the UK in May 2003 to work/live in Thailand for nearly 2 ½ years and I now have some equity in my UK property. I wish to use some of this equity to fund further investments. I now live and work in Australia and foresee that I may find it slightly difficult to remortgage my UK property due to the fact that I no longer live in the UK.

Are there any specialist lenders who would cater to my position, i.e. owner no long living in the UK but wishes to take out some equity for investment or other purposes? Foreseeing this potential problem I have actually tried to maintain the appearance that I have continued to live in the UK (as far as banking arrangements are concerned).

I believe that my credit rating is still good and wish to keep it that way. Would I be better off remortgaging through a broker or contact my current lender and see if I can do a deal with them?, although I fear they will ask me too many questions and realise that I am no longer working in the UK and this may damage my ability to obtain future credit In the UK.

Any help much appreciated,

thanks,

Hamster.

[solo siam]

Sounds like the wrong way to do it to me, the UK interest rates are rising whilst Thai rates are dropping - Why not sell the house, buy an apartment or smaller house, keep the equity % the same and pocket the difference.

[Hamster]

Sounds like the wrong way to do it to me, the UK interest rates are rising whilst Thai rates are dropping - Why not sell the house, buy an apartment or smaller house, keep the equity % the same and pocket the difference.

I take your point about interest rates but they dont worry me too much at the moment, i have plenty of breathing space. Mortgage rates here in Australia are above 7% and rising. The idea is to keep the house and use the equity to raise extra capital for further inestments. I don't think its doing much good just sitting in my UK house when i can use it to leverage other investments.

Anyway thats my point, i want to make it as easy as possible to get the equity, downsizing involves completely sellng and trying to get another mortgage when i'm not even working in the UK anymore. Think that might be a tad more difficult than remortgaging.

Anybody have any other "creative suggestions" on how to do this as smoothly as possible.

Thanks for the input Ben,

Cheers,

Hamster.