We are emigrating soon and have to rent out our house which we bought 9 years ago, can't sell due to the downturn in the housing market. Our mortgage is very small about 1 tenth of the current market price.
We wrote to our mortgage provider letting them know our intent to rent (possibly to my brother but didn't tell them that) and we received a letter back outlining 'matters that require attention'.
A lot of them we are organising such as contacting the revenue commissioner about the removal of tax relief at source which is fine. But they said that they require our permission in writing to increase our interest rate from 3.63% to 5.13% saying that the loan has to be converted to a commercial base rate index as we are renting.
This rate, I thought, is for people buying a second home specifically to rent out, but we will not be buying when we emigrate and this will still be our primary residence, especially when/if we come back after 2 years. Can they change our interest rate? Sorry if its unclear.
We wrote to our mortgage provider letting them know our intent to rent (possibly to my brother but didn't tell them that) and we received a letter back outlining 'matters that require attention'.
A lot of them we are organising such as contacting the revenue commissioner about the removal of tax relief at source which is fine. But they said that they require our permission in writing to increase our interest rate from 3.63% to 5.13% saying that the loan has to be converted to a commercial base rate index as we are renting.
This rate, I thought, is for people buying a second home specifically to rent out, but we will not be buying when we emigrate and this will still be our primary residence, especially when/if we come back after 2 years. Can they change our interest rate? Sorry if its unclear.