Hi there,
I have a tracker mortgage on my home which I may be renting out in the next year.
I was originally on a fixed rate when I took out the mortgage in 2006 and when I came off this went straight on to a tracker. There is actually nothing in the mortgage documentation that I can see to state this, it just states the 2 year fixed rate.
At the time I emailed the bank to see what rate I would be going on when the fixed rate ended and they gave me some options of fixed rates, but that if I didn't choose one of these, they said "Your mortgage will always be 0.80% above the ECB".
I can find nothing in the mortgage doc to say that the rate changes if I rent out my home. My concern is though, say ptsb find out I am renting out my house after about two year, and they have some sort loophole that means I have to go on to a different rate, could they make me pay all the interest I should have paid over the previous two years?
I really want to do everything above board but I know that the general consensus is to not notify the bank as they will definitely try to take the tracker off me and put me on an astronomical rate. I don't want to be in a position where I owe thousands though.
I have a tracker mortgage on my home which I may be renting out in the next year.
I was originally on a fixed rate when I took out the mortgage in 2006 and when I came off this went straight on to a tracker. There is actually nothing in the mortgage documentation that I can see to state this, it just states the 2 year fixed rate.
At the time I emailed the bank to see what rate I would be going on when the fixed rate ended and they gave me some options of fixed rates, but that if I didn't choose one of these, they said "Your mortgage will always be 0.80% above the ECB".
I can find nothing in the mortgage doc to say that the rate changes if I rent out my home. My concern is though, say ptsb find out I am renting out my house after about two year, and they have some sort loophole that means I have to go on to a different rate, could they make me pay all the interest I should have paid over the previous two years?
I really want to do everything above board but I know that the general consensus is to not notify the bank as they will definitely try to take the tracker off me and put me on an astronomical rate. I don't want to be in a position where I owe thousands though.
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