Buying new home buy want to keep old one - will KBC increase the rate?

B

BoxerAmotulo

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Hi all, Here is our situation.

We want to buy a new home for €325k but hang on to our own home which is worth €235k with €135k owing on a 3% mortgage with KBC. We will rent out our old home to my mom for a low rent of about €500 per month, we could get about €1,000 per month but don't want to rent to anyone but family.

Question - will KBC increase our existing mortgage rate (fixed for three years at 3% currently) given that this house will be now deemed an investment property - and if so do you have any idea how much of an increase we can expect?
 
None of the active lenders have a policy of doing this.

It might be worth checking your mortgage contract though to see if it allows them to do so. I don't think it specifically provides for this.

I presume you know that the rent received will be taxable?

Brendan
 
Thanks Brendan for the very prompt reply.
I have just got the very disturbing news from KBC Dundrum Hub that they will not give me my €80k savings which I have with them in a 12 month fixed savings account as it doesn't mature until February 2018. I said surely there is an early break clause penalty I could pay and the guy said they cannot do it. I even offered him the €700 interest that has accrued just to get my own money and he said no can do.

He said maybe if I got my new mortgage with them (KBC) there might be something they could do! I asked to make a formal complaint as this was not made clear to me at all when I opened the account over the phone. Do you think I'd have a case with the Office of the Ombudsman or am I wasting my time?
There's no way the vendor would wait until Feb 2018 so in effect we will now lose this house unless KBC re-think their decision here.
 
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