Owner occupied vs investment

[Adwas82]

Afternoon Folks

I am currently in process of searching for a property in Dublin City centre, in which I plan to live in. The purchase would be based on a mortgage, owner occupied.

However it is likely that my circumstances might change in the next couple of years, meaning that i will need to move from Dublin and subsequently i would be looking to let the property out.

I am looking for an advice, experience, commence in relation how would it work in respect to mortgage. Am i obliged to let the lender know, has anyone had any experience.

Any comments will be appreciated.

Regards
Mark

 

[Brendan Burgess]

It shouldn't be a major problem.

The mortgage will be described as a home loan so in theory, they could charge you an investment property rate. The practice has always been that they don't up the rate.

But why are you buying a home if you are going to live in it for only two years? You would be far better off conserving your cash and your First Time Buyer status and maybe buy a home where you know you are going to be living for some time.

If you have an investment property in Dublin, you may not be able to get a mortgage to buy in the location to which you might move.

If you know where you are going to move to, why not buy a home there and let it out for the first couple of years?

Brendan

 

[Adwas82]

thanks for the comments Brendan.

The moving may involve moving for a job abroad for some time, so most likely I will want to buy now.
In terms of the rate bump (moving from home loan to investment) , that is what i have heard before that the bank not necessarily apply that approach but wanted to see what other people experiences are.

Thanks again

 

[Brendan Burgess]

The moving may involve moving for a job abroad for some time, so most likely I will want to buy now.

You do not want to own a property in Ireland if you are working abroad. Rent until you know where you are going to settle for a while.

Brendan