Mortgage for first-time buyer, then letting

B

Baptiste

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Hi everyone,
I'm currently looking to buy and get a mortgage as a first time buyer in Dublin.
I'm also considering, in a few years down the line, moving out of Dublin to another country.
My question is, how does that affect the first-time buyer mortgage?

After asking 3 different banks, I got 2 different replies:
1-In 2 cases, they told me I'll have to switch to an investment property mortgage
2-In the other case, they told me that since I'm actually a first time buyer and I plan on living in it for a while, the mortgage won't change (nor the rate or anything)

I'm a bit confused since I got 2 different answers, doesn't anyone know a bit more about this and have experienced anything similar?
Most likely in the 1st scenario they didn't understand my question correctly and though I'd want to switch the mortgage?

Thanks a lot in advance,
Baptiste
 
Different banks have different rules and different practices.

But if you are not planning to stay here, you probably should not buy a house.

Brendan
 
If you do this, you are obliged to tell your bank that you have moved out and have let it.

They will shift you on to a higher interest rate.


On the other hand, once you keep paying your mortgage the bank will not know about your whereabouts. They will even send post to a relative's address and not ask questions.
 
Thanks for your replies.
@Brendan Burgess what's your reasoning behind "if you are not planning to stay here, you probably should not buy a house". I don't know if/when I'll be leaving Ireland, I'm not sure about what you mean here.
Also regarding different rules and different practices, I'm more thinking about this being a legal requirement than a bank practice?

@NoRegretsCoyote why would I be "obliged" to tell the bank? Does the first-time buyer mortgage "forces" you to leave in the house for the duration of the mortgage?

Thanks for your help guys!
Baptiste
 
Baptiste said:
Does the first-time buyer mortgage "forces" you to leave in the house for the duration of the mortgage?
Click to expand...
Ah. Being a 1st time buyer has nothing to do with it. It's the fact it's a mortgage on your principal private residence that matters. Interest rates for PPR are cheaper than investment rates, because there is a lower probability of default (coupled with less competition for buy to let market).
It's generally a condition of a PPR mortgage that you live in the property, or notify the bank if you move out. You lose certain regulatory protections once it ceases to be your home.
 
also any home insurance you take out will be affected by, if something happens, even if you have paid premiums, the insurance company can deny claims
 
Ndiddy said:
also any home insurance you take out will be affected by, if something happens, even if you have paid premiums, the insurance company can deny claims
Click to expand...
So you mean Home insurance will need to be updated right?
 
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