Inform mortgage of letting?

mrsod

Registered User
Messages
12
Hi everybody.

I bought house in march 2008 for 220K, mortgage was 200K.

I Have been letting out house fully for one year, and was advised against telling bank, so I didnt.

Only thing is that tenants are pretty bad at redirecting post, as in i have never recieved any.

The only post going to that address of interest is my mortgage stuff.

Phoned bank to change address but they need a reason, and if I inform them I am letting out, I will get put to higher interest rate.

Any suggestions how to re-address post legally?
 

Jim2007

Frequent Poster
Messages
2,105
You can get An Post to redirect you mail for up to one year here is the link

Or what about a PO Box - usual excuse given to switch to PO Box, is early access to mail by collecting it at a main post office.

Jim
 

mrsod

Registered User
Messages
12
Can I collect it at main post office in my current towm or does it have to be at the post office of the town where the mortgaged house is? I live anout 1 hour from my mortgage property. Thanks for sugggestions
 

LDFerguson

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4,094
Have you told your house insurance company? Letting the property is a material fact as regards the insurance.
 

mrsod

Registered User
Messages
12
Yes I have changed insurance to landlord insurance, cancelled TRS, paid NPPR tax and registered with PRTB, the only part I left out was informing my bank.
 

twofor1

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1,300
I have eBanking and get all statements, correspondence etc regarding my mortgages with NIB via email, is this an option with your bank ?
 

mrsod

Registered User
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12
I looked into that but Bank of Scotland Ireland don't do ebanking unfortunately. Any other suggestions would be greatly appreciated?
 

Bronte

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13,702
The only post going to that address of interest is my mortgage stuff.

Phoned bank to change address but they need a reason, and if I inform them I am letting out, I will get put to higher interest rate.
Then whatever you do don't tell the bank. Get 12 large brown envelopes, put your current address and stamps on it and ask tenant to pop all your post into it once a month. You cannnot be getting much correspondance from the bank on the mortgage in any case and get as much as you can electronically.

Failing that collect the post once a month, you surely need to check the house once a month.
 

paddyc

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Messages
429
I am currently looking into renting out my current property and buying another. We currently have a tracker mortgage, while not the best tracker rate its still a lot better than current variable rates. We are not looking to take out the 2nd mortgage with the same bank so they won't know about it, however if we tell them our plans as we will have a new address can they make us change our mortgage type ? Our current tracker is with BOI
 

FlippedOut

Frequent Poster
Messages
47
Afternoon,

Just the post I need!!

I just read your post on the whole advising banks your letting your property.

We are just about to move to Spain with my job, and will be renting out the family home.

You mentioned that you changed your insurance to Landlord insurance. Do the insurance company not have to notify the bank when there is a change of insurance?

And when you cancelled TRS, did the bank not question why this was done?

Sorry for all the Q's........ And thanks in advance,
 

mrsod

Registered User
Messages
12
When I changed insurance, themcompany posted something to me with the policy, and mentioned something about sending it to bank, I have yet to do that! And the TRS was cancelled just before christmas and I haven't heard anything from bank yet. Was renting for a year before I realised I had to do TRS, Insurance change, NPPR thing, and the PRTB thing. I was clueless about the whole thing and it was a burst pipe in rented property that made me realise all the things I didnt have done or filled out or paid. So before you go to spain, chech out irishlandlord site, its very informative and answers lots of questions. I dont know if i can avoid bank finding out, not sure what penalty would be applied if they did. Any advice from anybody else?
 

FlippedOut

Frequent Poster
Messages
47
Thanks a million for getting back and with the answers.

Its just the loss of the TRS with things already being very tight (hence the move to Spain)

I take it that once the mortgage company know that its being rented then the interest rate will go up?
 

mrsod

Registered User
Messages
12
i assume interest rate will go up if house becomes rented property, I am too scared to ask bank because they may ask for my details, then they may record phonecall which could get me in trouble later.
 

Troy McClure

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300
You inform revenue to cancel TRS. They will cancel it.

Remember TRS is only for your principal residence and is illegal if claimed otherwise. Most banks are happy enough as long as your mortgage is been paid.
 

muffin1973

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Messages
632
MrsOd, I was wondering that too, that if the TRS was cancelled, as it is applied by the bank surely they would question why you're cancelling it? Also could I ask you was the landlord insurance much more? I know about the PRTB but what's the NPPR if you don't mind??

We want to move house (rent ours out and rent somewhere else) and the only thing stopping us is that we have a tracker and everyone's telling us we'd be mad to give it up - which I know, but we really want to move and I'm not sure how it's going to work. I know we have to cancel the TRS, but I would have thought that would flag it with the bank and with banks trying to get those of us on trackers off them, wouldn't they get in touch and see what was going on?? Am headwrecked with it all...

M
 

markpb

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432
We want to move house (rent ours out and rent somewhere else) and the only thing stopping us is that we have a tracker and everyone's telling us we'd be mad to give it up - which I know, but we really want to move and I'm not sure how it's going to work.
I'm in the same boat so I asked my solicitor for a copy of my loan agreement (with ICS from 2005) to see if there was any mention of that in it. So far I haven't seen anything so maybe not all tracker mortgages were limited to PPRs?
 

muffin1973

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Messages
632
Maybe not Mark, I have read threads on here before where there is no mention of having to been the PPR in your property to retain the tracker, but in ours it's very clear - we got a copy from our broker. You're lucky yours doesn't mention it...

M
 

Bronte

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13,702
TRS is a tax relief. It is between the tax payer and revenue. It is faciltiated by the banks by being deduced by them. But it is not their business. Your tax affairs have nothing to do with the bank. If you cancel it with revenue the bank cannot ask you any questions about it.

If you change house insurance contract and thereby have a new company and the bank have to be on notice, make sure that notice doesn't mention that it is landlord insurance.

There is only one problem and it doesn't apply to all mortgages only some. In 5 or 10 years time if the banks discover that you had become a landlord nobody knows what they will do or what rights they will have.

For those changing from TRS to mortgage interest relief. There is a misperception that they are losing out. Mortgage interest relief for rental properties is a much higher relief than TRS so don't make the mistake that your costs are going up in relation to that particular aspect. There is of course tax on rental income and all the other things but that's for another thread.
 

muffin1973

Frequent Poster
Messages
632
Bronte, thanks so much for all that, very interesting. Forgive my ignorance but I thought TRS and mortgage interest relief was the same thing?? You're saying that we could claim mortgage interest relief if we rented out the house?

Good point about the bank finding out in a few years, that would not be good.

thanks

M
 

mrsod

Registered User
Messages
12
What is the worst the banks can do if they found out? Im with Bank of Scotland Ireland, so I am assuming they are just grateful that Im repaying the loan every month. The only problem is trying to get the postal address changed withoug creating suspicion. Tenants dont seem to re direct my post.

Muffin 1973, the NPPR thing is something I didnt know about until recently so I ended up paying the late fee. It is a tax on your Non Primary Principal Residence, its 20o Eure with a 20 fine for each late month.
 
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