Accidental landlord looking To sell

Discussion in 'Mortgages and buying and selling homes' started by CatherineK, Mar 20, 2017.

  1. CatherineK

    CatherineK New Member

    Posts:
    5
    Hi all,

    A few years ago we had to move county for work and have rented out our house since then as we were unable to sell at the time due to negative equity. We are ourselves are also renting.

    We have been paying tax on our rental income but never told bank as there was no way we were ever going to be able to afford any increase in monthly payments with our tracker mortgage or loss of it. Our mortgage is with UB which started in 2005 and there has never been any missed payments.

    So now we want to sell it...my question is has anyone else had any issue with bank in a similar situation? Got caught out? As a seller do I have to notify the bank of my intention to sell etc?

    We would want to sell first then look to buy. We are happy where we are renting so no rush to buy.

    I would appreciate any advice or assistance.

    Thanks in advance!

    Catherine
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    30,973
    A slightly tricky situation.

    Ulster Bank allows people with tracker mortgages to take out a special mortgage for two years at ECB +2%. more information

    So it's important that you apply for this mortgage first. It does not apply to investment properties.

    So I think you should apply for Approval in Principle first and see how you get on. You can tell them that you have rented it out temporarily while trying a new job. I doubt that they would mind very much.

    It is not the practice of any bank, other than Danske, to increase the rate if a person rents out their former home.

    Brendan
     
  3. CatherineK

    CatherineK New Member

    Posts:
    5
    Thanks for your response Brendan.

    I'm wondering if I should make use of a broker to act on my behalf.

    Is it possible to use equity from house as deposit or do you also have to demonstrate savings as well. We are looking to downsize so mortgage would reduce by about 70/ 80 grand. We reckon we have 60 grand equity on house now.

    Any advice welcome!
     
  4. Bronte

    Bronte Frequent Poster

    Posts:
    11,917
    Your equity will be less legal and auctioneering costs. You also need to physically have the deposit. You also have legal costs on purchase.

    If you're selling I presume it will be vacant possession - you can move back in, in the meantime. The bank will spot you are in different counties I imagine. Like if the property is in Donegal and you're working in Kerry. You might have to explain this. For example my brother works in Dublin Mon - Fri and stays there naturally. Perfectly explainable.
     
  5. Learner2015

    Learner2015 Frequent Poster

    Posts:
    126
    AIB had no issue when I sold property last year that was rented for years and availed of their tracker retention product for new family home. I asked them outright and they said it's noted as your PDH and that's all that matters.

    Like you I never told them we rented it until I applied for mortgage for new home, they even sent mortgage paperwork to where we were renting for years ourselves.
     
  6. CatherineK

    CatherineK New Member

    Posts:
    5
    Thanks for replies.

    Looking at our current account it wouldn't take long to figure out we are living elsewhere! At this stage now I just can't wait to done with house and move on.

    Anyone same experience with Ulster Bank?