Forum Replies Created
Refixing (remortgaging), is not easy but some brokers specialise in mortgages for expats. The only back-door way to remortgage is to do a ‘product transfer’ at the end of the fixed period. This can only be with the same lender and only switches you to the lenders variable rate which is much higher (as far as I’m aware). I understand that few questions are asked and little proof is required to make this happen. Everyone I’ve spoken to here has little interest in overseas income to support loan applications in the UK and, in my experience, it appears to raise more negative questions about serviceability than to bolster your credit rating.
I’m in the UK now, having moved back from Sydney last year.
And, yes, I’m looking for deals to invest in the near future.
Mortgages are harder to obtain here. All sorts of objections have been given by lenders, EG:
Must have been UK resident for the last 3 years
Employed, being paid GBP, not self employed.
Must own your residential property before lending for a Buy To Let property.
Max LTV based on rental income, not asset value. This is approx 50% LTV max, in the areas I want to buy.
All the above can be overcome but at a far higher interest rate and only, in my experience, on a fixed 2-5 year rate. After which, the rate balloons, forcing you to remortgage.
But, if you can tick all the boxes, a Buy To Let loan can come in around 2.1% Try getting that rate anywhere in Australia!!
Final warning: remortgage/ refinancing any investment property in the UK is near impossible, if you are not living in the country. Therefore, if you plan to hold on to the properties and live overseas, you will struggle to access equity to fund further investments.Dear All,
Thank you. I have read all the above posts with great interest and feel much better informed as a result.
Interestingly, no one has replied saying that they have discovered holes in their insurance policies as a result of my Heads-Up.
The chatter in the above recent posts just goes to show what a minefield this can be and that there must be so many landlords out there for whom their cover will be insufficient through one get-out clause or another (buried deep within the PDS).
At my property, the clean up is under way but I will be out off pocket: electrical rectification $3,600, redecoration $3,500, Door repairs $3,000, carpets $4,100 etc etc..Thanks Benny,
This is the first claim I have had to make in 16 years as a landlord. Unfortunately, it is a doozy.
Easy to get complacent with insurance, thinking I had good cover, when in fact, it was sorely lacking.
I hope that some landlords have had a good look at their PDS document as a result of this post.Thank you Ethan, I will finalise the claim process with QBE and then we can talk about a new policy.
I hope my experience has been a good warning to others to read all the fine print and make sure that that they are adequately covered, irrespective of what it might say on the cover note..Thanks Benny, That is a great help.
Thanks Benny,
I will pursue the insurance broker option.The problem was discovered on the first quarterly inspection by the letting agent.
Re: QBE Insurance. Yes, I failed to read the entire PDS all the way to page 45 to find out about the malicious damage get-out clause. I only have myself to blame for this.
The reason for my post is to warn others based on my experience since I suspect that there many others out there that do not fully read the PDS cover-to-cover. They might think they are covered for malicious acts when, in fact, they are running a huge risk.I’m disappointed with QBE for hiding the malicious damage clause way back in a very wordy PDS document rather than being upfront in the insurance schedule.
When I took out the cover, I asked about malicious damage, wanted to pay the premium for the cover (thank goodness) and was simply told that I was covered for malicious damage. The QBE rep mentioned nothing of the get-out clause.Now, I’m wiser and will be far more careful with the next policy.
I’m still looking for a suitable insurer for landlords that gives a more reasonable level of malicious damage cover.Thanks Hydramax,
I’m impressed at your diligence.
Unfortunately, I have had to learn the hard way with QBE.
Any suggestions for where I should turn for a Landlords insurance policy that is fair when it comes to malicious damage?
There must be hundreds of subscribers that are in a similar ‘at risk’ state.
Thanks,Thanks Jason,
So, I’m on the look out for an insurer for landlords that does not have the sneaky limiting clause for ‘malicious’ damage.
I consider myself lucky since, if the tenant had caused a fire by their ‘malicious’ action, the building cover would have been a crippling $10,000. Not the $640,000 that I thought I was insured for.
Anyone know of such an insurance provider?Yes, I wish more people knew about this insurance racket.
Maybe a good idea for Propertyinvesting.com members to have a list of insurers that do not have this clause that severely limits payouts for anything deemed a ‘deliberate act’ by the tenant.Hi Benny,
Plastic everywhere including on all walls.
Water damage to floors. All carpets to be replaced and dried.
Holes in walls for ducting. Walls need rectification and fully redecorated.
Electrical wiring tapered with. Electrical surveys and repair.
Wiring strung from ceilings. Lights disabled. Smoke alarms disconnected.
Huge amount of debris removal (pots, plastic, pipes, wiring, ducting)
Police broke down two external doors to gain entry etc etc.But the sneaky get-out clause by GIO on page 45 of the PDS could apply to any damage that is deemed intentional by the tenant. Therefore, could apply to a lot of other problems including if the house had been burnt down.
Note: I used a full lettings management agent who checked the tenants when there applied: Passports, references etc.. all deemed fake by the Police.
It could happen to you..
