I hope someone may be able to help me with my query. My husband & I own 2 properties. We rent one and live in the other.We would like to purchase a third property but this would require us moving to interest only on our current PPR. Does anyone know or have experience of UB allowing customers with a tracker on a PPR to move to interest only for a maximum of 5 years if they choose to rent it out?
I hope someone may be able to help me with my query. My husband & I own 2 properties. We rent one and live in the other.We would like to purchase a third property but this would require us moving to interest only on our current PPR. Does anyone know or have experience of UB allowing customers with a tracker on a PPR to move to interest only for a maximum of 5 years if they choose to rent it out?
This line says to me that you cannot afford to buy the third property while holding on to the existing two. And if you cannot afford it at a time when interest rates are at historic lows (which they won't be forever) then you cannot afford it full stop.
In the absence of any other information, I'd say that at least one of the existing houses will have to be sold.
Thanks for the replies. I should probably clarify as my initial post may have been misleading that we have spoken with UB and have been approved in principle for a third mortgage and have shown the capacity to pay all three mortgages (capital & interest) and have also been stress tested. In relation to the requirement for interest only on our tracker, that is a personal choice that we are exploring. Which brings me back to the initial question do UB consider moving you to interest only if your PPR becomes an investment property.
In the current climate, I would expect that Ulster Bank won't offer interest-only given that this is evidently not a distressed loan. No harm asking them but I wouldn't be too optimistic.