PPR to Rental - Notify Mortgage Providers?

G

Grindle

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Hi

I found similar posts but none answering the question definitively. I have an attractive trakcer rate with NIB on the mortgage of my PPR. I have lived in the property for two years.

I am now considering moving in with my boyfriend and renting out my house. I do not want to lose my attractive mortgage rate. As far as I can see in my mortgage contract, the issue of notifiying the bank in the event of change of use is somewhat of a grey area.

When cancelling the TRS on my house, because this TRS is granted at source by the bank, will they then come knocking to see why? Will them presume that there has been a change of use and try to change my mortgage rate to a product rate less desirable?

If anyone has been through this or has any advise I appreciate it.
 
It will say it in your mortgage document/summary. I have the NIB ECB+0.5% mortgage myself and it is in the mortgage summary that it's conditional on the house remaining my PPR and includes an obligation to notify them if that changes. What does your mortgage contract say that makes it a "grey area" to your mind?

If there is an obligation to notify and the terms say that the rate is dependent on the house being your PPR, then the TRS thing will make no difference to that substantive question, but may serve to notify the bank if you don't do it yourself.

I had looked at buying a new house earlier in the year and changing my current house to an investment property and NIB was going to move this mortgage to an investment one, which is less attractive then the residential mortgage. I'd be surprised if there isn't a similar clause in your mortgage agreement...
 
WaterSprite said:
I had looked at buying a new house earlier in the year and changing my current house to an investment property and NIB was going to move this mortgage to an investment one, which is less attractive then the residential mortgage.
Click to expand...

How less attractive? Would it have still been a tracker?
 
I don't think it was a tracker, no. They offered me the tracker for the (new) residential property (this was back in July, before everything was pulled) and the investment property would have been moved to the then-current investment variable rate.
 
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