Obtaining a mortgage for a property to be let is no longer difficult as most lenders have suitable products. Often affordability will be based on the rental income, but the lender will also like to satisfy themselves that regular income is also derived from another source. This may be from employment, self-employment, or a private pension. Therefore, should the lender have prior knowledge that the applicant is leaving the country they will need to find out about their proposed employment.
The applicant would be subject to stringent underwriting based on expatriate criteria and could be subject to a higher interest rate. Lenders typically prefer applicants to be working for a multi-national company or in the armed forces so they can validate employment more easily.
It is worth remembering, the applicant’s status often changes after completion and lenders can only underwrite on the applicant’s circumstances at the time. The sensible time to tell a lender of a change in circumstances is when the applicant has made up their mind, otherwise they may pay a higher interest rate than necessary. When notified, the lenders are unlikely to prevent the property being let.
