Situation re UK mortgage and moving abroad

[InMyPrime]

We're moving to the USA in the New Year but I am hanging onto our house here as it's not necessarily a permanent move (visa is for 3 years). The mortgage and deeds are in my name only and the current mortgage (variable tracker) runs until October 2012. My plan is to just keep the house vacant and not rent it out (yet - might change my mind on that depending) so I won't need a BTL mortgage as yet but will just be paying the mortgage monthly as normal out of my UK account.

My issue is: do I need to tell my mortgage provider that I'm moving abroad and does it change my credit status in any way? Also, I am no longer the primary earner as I gave up my job when we had DS last month. My original intention was to take a year off and go back to work but since we're now moving to the US, I won't be earning due to visa restrictions. DH will now be the main earner so should I put him on the deeds in order to allow him to apply for mortgages in the UK once our current mortgage runs out? Also, he is a UK citizen but I'm not - am EU and basically treated as British to all intents and purposes while living here but thinking that might change once I'm no longer UK-resident?

Not sure about your mortgage/credit rating etc.. But, if you are leaving the house untenanted, I'm pretty sure after maybe 6mths empty it affects your house insurance. You should definitely call your provider and run the scenario past them.

I know some expats that return to their home every 6mths (or whatever the limit is), to keep it as inhabited for their insurance.

No idea about credit ratings but our mortgage provider won't let us leave the house uninhabited for more than a year, and the insurance company has a 6 month limit. When dh worked overseas I had to come back and stay in the house every few months.

We moved temporarily overseas a few years ago, leaving a property in the UK which was rented out for periods. We informed our mortgage company, but only because we had to seek their permission to rent it out. Had we not been renting it out, I don't think I would have informed them, as long as the mortgage is being paid I would have thought what business is it of theirs? The best thing is to read your mortgage conditions leaflet (if you no longer have a copy, they should be able to send you a new one) and check whether or not the mortgage company has specified this and whether you have to inform them if property left empty for periods of time.

Re your husband on mortgage deeds - I'm not sure whether or not he would have to be on mortgage deeds in order to apply for UK mortgages? In our case, I was the property owner (my sole name on deeds) and then, like you, I stopped working and mortgage started to be paid out of husband's bank account (after changing direct debit arrangements with mortgage company). We enquired about other mortgages in husband's name with financial providers when we were thinking of buying/selling, and they never mentioned he would have to be on mortgage deeds. If he was a UK resident and earning income etc. he could have taken out a mortgage. But not 100% sure about this, as it's on your current property that you may want husband to take out mortgage - slightly different from our case - so I would seek some proper advice, maybe a financial adviser or citizens' advice?

Your husband will not need to be on the deeds to get a UK mortgage. He will need to go on the deeds if the house is re-mortgaged with him on the mortgage though.

Please call your insurance company. Some insurance companies do not allow a property to be empty longer than 60 days so you MUST check this before you decide what to do.

I assume your tracker ends in 2012, and not your mortgage. If that is the case then your mortgage will revert to svr (standard variable rate)

If I were you, I would rent it out. As others have pointed out, your insurance will become invalid if noone lives there for a certain period of time. Additionally, you will also have to pay some council tax.

Why not look for a reputable letting agency and earn some money whilst you are gone and have someone look after the house. We haven't lived in our house for years and year and have minimum hassle so far (lucky I guess, letting agents sort everything).

When it comes to re-mortgaging, I wouldnt think you would have to get a buy-to-let mortgage. You are only planning to let the house for a couple of years (tell mortgage company that it is only for a year, less likely to insist on BTL and just keep extending), that's what we are doing and have had no hassle from them.

Thanks for the responses - I was aware of the issues with the insurance company on having a vacant property so checking that with them is on my to-do list. If they had issues with it being vacant, i was planning to come back and visit regularly anyway so that might not be an issue, depending on their terms and conditions. Renting it out did cross my mind in terms of having people in it to take care of it, the garden etc. I do have reservations too though as I have had bad experiences with letting agents in the UK, who seem to largely be cowboys with little regard for anything other than making a fast buck. I wouldn't want to entrust my property to any letting agent I've encountered to date, even the higher end ones, so I'm very wary on that front. The house would work as a holiday let too actually because it's close to lots of tourist attractions, the Highlands of Scotland, Edinburgh etc so that might suit us better. We already have a property in Germany that we rent out long-term so I'm also kind of keen to avoid being absentee landlords in 2 different countries while living in a third...

It does seem a bit of a tricky situation though so it might be a good idea to go to CAB or a financial advisor on this. The company my DH will be working for offer free financial advice as part of the relocation deal so it might be worth speaking to them.