Moving from a residential mortgage to investor rate

Hi,
I'm hoping someone can help me out here. I'm currently on a 3 yr fixed rate mortgage with BOI which finishes up in October. I'm renting out my property for the last couple of years (i've disclosed this to revenue and filed tax returns for the property since it's been let) but never informed my bank. It's not clear to me now if I am actually obliged to disclose this to the bank and move to an investor rate, or whether I can continue on with an owner/occupier rate. Some reasons I'm reluctant to move are obviously the higher rate, less flexibility in terms of being able to take payment breaks etc. Also I've heard that some BOI fixed mortgages taken over the last few years have in the T&Cs that you can actually move to a tracker when the fixed rate expires in which case I'd be mad not to take the tracker option? The rent doesn't cover my mortgage as it is so I don't want to end up losing more and it clearly isn't a good time to sell.

Any advice would be greatly appreciated.
Thanks.

What do the terms & conditions of your mortgage say?

I can't actually find them so i'll have to request a copy from the bank

"if it were me" I'd keep schtum. You're in order with revenue and that's the main thing. Let BoI sing for it I say. The banks are as reponsible for this mess as anyone so I wouldn't be bending over backwards to pay them even more interest than you currently do ;-) I believe it's fair to say there are probably thousands of people in your shoes who have not told the bank and in reality there's no way for the bank to find out. You may not be entitled to TRS for a whole host of reasons so just because revenue will have told your bank to stop TRS they won't tell them the reason ;-) The bank needs you to disclose the info. More importantly, make sure your insurance company knows it's a rental if they don't already!

murphaph said:

"if it were me" i'd keep schtum. You're in order with revenue and that's the main thing. Let boi sing for it i say. The banks are as reponsible for this mess as anyone so i wouldn't be bending over backwards to pay them even more interest than you currently do ;-) i believe it's fair to say there are probably thousands of people in your shoes who have not told the bank and in reality there's no way for the bank to find out. You may not be entitled to trs for a whole host of reasons so just because revenue will have told your bank to stop trs they won't tell them the reason ;-) the bank needs you to disclose the info. More importantly, make sure your insurance company knows it's a rental if they don't already!

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+1

Thanks for the replies. I'll be moving onto a rate of 2.7% vs an investor rate of 4.7% so I reckon it's worth taking the chance of sticking with the owner/occupier rate for the time being anyway.

hikicker said:

+1

Click to expand...

+2!

I have a loan with ptsb for an investment property and 5 years ago negotiated a home loan rate on it after coming off a 5 year rate - at the bank's discretion - do nothing.