Change of mortgage type upon renting out.

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Danny17

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Hi.
Has anyone had any experience or advice in relation to renting out our house that is a residential mortgage.
My wife (Spanish) & I are thinking about going to Barcelona for 3 years or so. Our house has a smallish mortgage 80,000 euro remaining with a tracker rate of ECB + 0.51%. & about 7 years or so remaining in term. It was originally with Danske bank but now with Pepper. IDo pepper automatically switch people onto a Buy To Let mortgage & if what could this Rate end up as?. The potential move depends on being able to rent the house out & being able to live in it once again when we return back to Ireland, and having a letting agent to attend to things while we are away.
Thanking you in advance for any advice.

Dan
 
Danny17 said:
Hi.
Has anyone had any experience or advice in relation to renting out our house that is a residential mortgage.
My wife (Spanish) & I are thinking about going to Barcelona for 3 years or so. Our house has a smallish mortgage 80,000 euro remaining with a tracker rate of ECB + 0.51%. & about 7 years or so remaining in term. It was originally with Danske bank but now with Pepper. IDo pepper automatically switch people onto a Buy To Let mortgage & if what could this Rate end up as?. The potential move depends on being able to rent the house out & being able to live in it once again when we return back to Ireland, and having a letting agent to attend to things while we are away.
Thanking you in advance for any advice.

Dan
Click to expand...
in practice how will they know? anyone i know hasnt gone to the bank offering up this information.
 
Don't forget the implications of CGT on the period that you rent it if you ever want to sell. There are exemptions for this so worth your while getting the full picture.
 
Danny17 said:
The potential move depends on being able to rent the house out & being able to live in it once again when we return back to Ireland, and having a letting agent to attend to things while we are away.
Click to expand...
The mortgage wouldn't be a worry for me, I didn't switch mine in a similar situation and the bank themselves even referred to it as a buy to let later in some other business with them, while it remained on a PPR mortgage. Being able to move back into it might be an issue, at a minimum you are looking at giving 6 months notice when moving back but the risk is that the tenants will overhold leaving you looking for somewhere else to live when you come back. They also might move out immediately once you give them notice, so you might be paying a mortgage on an empty place for up to 6 months if you can't move back immediately. My experience with letting agents is that they do the bare minimum and they don't 'attend to everything', you should take inventory yourself and ask for photos/video of everything from the agent before and after every tenant. In my experience they don't do this properly, although I may just have gotten a bad one.
 
So long as you pay the mortgage on time and in full every month, bank will neither know nor care.

Letting agents have their place I'm sure, but no one will take care of your business as well as you.

I'd save the agent fee & instead spend it on a quarterly flight home to do inspections.

Be aware of the overholding aspect when you want to return; it might be fine, it might not be fine, just have a plan.

Pack anything you care about into the attic & budget for redecorating when you return home.
 
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