Moving PPR Mortgage to BTL

Hi folks
I'm looking to purchase my mams house and buying out all of the other members/beneficiaries of mams estate
Its in a prime location - where 2 beds generate a rental income of 2000 - 2500 a month

Mams house is a multi unit household - comprising of 4 x 2 bed cottages - all self contained and registered as one Folio - I could live in one cottage and rent out the other three - this is what mam did before her passing to supplement her pension
Mam's House is valued at 530,000 and i would need to borrow 300,000
My Current family home has mortgage o/s of 58k with a value of 650k and matures in 2030 - with BOI

I am looking to moving my Principal private residence mortgage as a BTL mortgage and apply for a mortgage as a PPR on Mams property
Is this feasible or is there anything i should know/avoid

Currently work in civil service as an Engineer Grade 1 and salary is 84k
No loans, no credit cards and excellent saving history of 2500 a month for last 10 months
Age 51

You have a home loan rate on a mortgage of €58k on your family home. Is your question what happens to the mortgage if you let out this house? While the contract allows BoI to switch this to a buy to let rate, in practice, they do not enforce it. But so what if they do? The rate will go from around 4% to 6%. So you will pay an extra €1,000 this year and probably about €3,000 in total over the remainder of the mortgage term.

You would prefer not to pay this, but it's completely immaterial in the context of the overall numbers you are talking about here. So don't let this impact your decision in any way.

Will a bank give you a mortgage at PPR rates on 4 two bed cottages?

The fact that you already have a PPR mortgage won't affect this in the least. From a Revenue point of view, you can't have two PPRs, but that has nothing to do with the rate you are charged.

BoI might not give you a PPR mortgage on a new house while retaining it on your old house, but other banks won't care.

But the more fundamental question is whether a bank will give you a mortgage at all on the 4 two bed cottages?

I don't know the answer to this. You need to talk to a mortgage broker. I doubt that they would give you a PPR rate on what is 75% an investment.

But the most fundamental question of all is whether you should keep your existing home at all.

Why do you want to keep it? You will have three investment properties after you buy your mother's property.

If it were me, I would sell the existing house. Use the proceeds to buy out your siblings. And live mortgage-free.

That's going to be some form of commercial mortgage, I don't see anyway you will get the full borrowings at home loan rate when there are going to be 3 rental properties included. I would try a broker but it might be a straight to bank case. As Brendan says the rate on your own existing PPR is neither here nor there really, it's getting the borrowing for the other project at reasonable rate is a bigger issue.

Edenbridge146 said:

My Current family home has mortgage o/s of 58k with a value of 650k and matures in 2030 - with BOI

I am looking to moving my Principal private residence mortgage as a BTL mortgage and apply for a mortgage as a PPR on Mams property

Click to expand...

Is there any marital separation involved here? This might allow for two PPRs.

Edenbridge146 said:

I am looking to moving my Principal private residence mortgage as a BTL mortgage and apply for a mortgage as a PPR on Mams property
Is this feasible or is there anything i should know/avoid

Click to expand...

You can't really "move" a mortgage. You could inform your lender that your current mortgage is no longer your PPR and they would put you on the higher BTL rate. Then you could apply for a new PPR mortgage for your mother's portfolio assuming you met the criteria. Banks will not let you have more than one PPR mortgage.

I don't really understand how "mam's house" comprises "4 x 2 bed cottages" - could you explain this a bit better? It may suit your purposes (and your siblings') if the cottage you intend to occupy as your PPR is on a separate folio to the others. But if there is shared access and no boundary walls then a lender probably wouldn't lend anyway.

If you explain the physical layout of the propert(ies) it might help with advice.