Could I lose my tracker if I rent out my holiday home for a few weeks a year?

[outdoorgirl]

Hi, in 2008 I bought a cottage and got a tracker mortgage with PTSB. The cottage is a holiday home and not my principal residence. I have been thinking of renting out the cottage for a few weeks during the summer. However I saw the bulletin in the news about a clampdown by banks on people with Tracker mortgages renting out their properties.
When I got the mortgage the manager knew it was a holiday home. I got insurance through the bank for the cottage as a holiday home. However after seeing the news I looked at my paperwork and it doesn’t say anywhere that it is a holiday home. I never thought to question that before.
Could the bank take away my tracker mortgage if I rent out my own home for a few weeks to help cover some costs? If so it’s not worth renting out. But could they take away the mortgage anyway if they were to claim that as a holiday home it shouldn’t have a tracker? Even though they knew that when granting it to me?
Any advice would be very welcome. I know there are other posts about people on trackers wanting to rent but none are holiday homes renting for a few weeks only. Should I discuss it with the bank before proceeding? I’m still afraid they will claim they didn’t know it was a holiday home and I don’t have the paperwork to prove otherwise. Thanks in advance for advice given.

 

[Padraigb]

Does your paperwork say or clearly imply that the property is your principal home?

 

[outdoorgirl]

No, it doesn't state that the property is my principal home anywhere. The paperwork states that the property is occupied as "a private residence".
In my paperwork the type of mortgage is "Residential Tracker Rate Loan".
In each Permanent tsb Home Insurance Renewal Schedule it states "This property is occupied as a holiday home".
Any advice?

 

[ClubMan]

Hi, in 2008 I bought a cottage and got a tracker mortgage with PTSB. The cottage is a holiday home and not my principal residence.

...

Could the bank take away my tracker mortgage if I rent out my own home for a few weeks to help cover some costs?

This is a bit confusing - the first part refers to a holiday home and the second refers to "my own home". Maybe you can clarify?

 

[outdoorgirl]

The cottage is not my principal residence as it is too far from work to commute. I am there at weekends, for holidays and when I have the chance. Hence it would be classified by people as a holiday/2nd home. I described it as "my own home" because I love it. I feel very strongly about it. I bought it before I got married and it is in my name. I consider it to be my home, in the sense that I am at home there. I love it, have it decorated as my home and I'm there as often as I can.
However for financial reasons I'd still like to rent it out for a few weeks a year (fully legally paying taxes etc) to help cover some costs that the property incurs. Hope that clarifies things.

 

[serotoninsid]

I'm no lawyer but here's my interpretation of it...

No, it doesn't state that the property is my principal home anywhere. The paperwork states that the property is occupied as "a private residence".

It won't be occupied as a 'private residence' if you rent it out (and use it commercially).

N
In my paperwork the type of mortgage is "Residential Tracker Rate Loan

Note the word 'residential'.

In each Permanent tsb Home Insurance Renewal Schedule it states "This property is occupied as a holiday home".
Any advice?

'Occupied as a holiday home' - but I guess their take on it would be that it is YOUR holiday home .....not a commercial venture.


just my 2 cents.