Changing from home mortgage to investment mortgage First Active

[McGann]

A couple of months ago I rang first active regarding property originally bought as home now rented - would I be better of re-negiotating type mortgage? - FA say it would not make much difference.

I have been paying same amount for last 3 years, it is a facility account mortgage (variable rate)

I suppose my question is (bearing in mind Im not great at financial affairs etc) how do I go about getting the best value in mortgages, should I employ the services of a broker? - get them to do the searching for me? I already have an accountant to do tax returns because I feel I don't have the ability to fill out this form myself

As Im no longer getting mortgage interest relief and the rent I am receiving is not enough to cover mortgage, plus the 200 euro investment tax, BER rating, management fees etc. I seem to be down in money each month.

Any advice would be greatly appreciated.

Thankyou in advance
McGann

 

[LDFerguson]

As far as I know all First Active offset mortgages were tracker rate, i.e. your rate stays a fixed margin above the European Central Bank rates and First Active cannot unilaterally increase your repayments. This is very valuable as such tracker mortgages are no longer available.

If you switch to another lender, your rate will undoubtedly be dearer as you won't get another tracker and you'll be charged more because the property is rented.

Ask your solicitor to check the original loan offer to see if it specifies that First Active must be notified if you rent the property out. If it does, send a registered letter to First Active head office quoting your account number and telling them that the property has been rented out. Keep a copy of the letter and proof of postage.

If you haven't done so already, make sure to tell your house insurance company that the house is rented out as that's relevant to the insurance.

 

[Bronte]

As Im no longer getting mortgage interest relief

You are no longer getting TRS (Tax relief at source) mortgage relief but you are getting a better mortgage relief on the interest part of your mortgage?