Negative Equity and Moving Overseas

[orfu203]

Here is the situation. Our house is in negative equity, we are on a repayment mortgage with N-RAM. We have no difficulty meeting the mortgage payments, and had no intention to sell, so –ve equity was not a problem. BUT I have been offered a job in my home country, far better paid and more senior, and will mean our son can see his family and go to a much better school. There is no way I’m not taking this job. The problem is what to do about the mortgage. The issues are – negative equity, the market rent for the property is less than the current mortgage repayments, and although I can afford the mortgage payments and rental in the home country, that income is not earned in the UK and is presumably not counted. My partner will earn in the UK, as a contractor to her current employer, sufficient to fund the mortgage but as this work stream is un tested presumably that doesn’t count. From the mortgagee’s perspective what would they rather, a forced sale and unsecured lending for the shortfall on the mortgage, or buy to let where the owner is overseas and funding the mortgage from there?

 

[oldnick]

Except for the great weather here is there any reason to come back ? If not, why not just return the keys and say bye bye ?

 

[Mrs Vimes]

you appear to be referring to a UK property, not sure if you are aware that this is an Irish site?

 

[Greta]

From the mortgagee’s perspective what would they rather, a forced sale and unsecured lending for the shortfall on the mortgage, or buy to let where the owner is overseas and funding the mortgage from there?[/SIZE]

If you continue to pay the UK mortgage, I don't see how they can force you to sell. Check your terms and conditions for exact detail but in general, you'll probably have to obtain permission from your lender to rent and may have to pay a higher interest rate as the house will no longer be your main home. But the bank can't just force you to sell, unless you stop paying the mortgage.