Renting out PPR

C

clio1999

Registered User
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We had our house on the market for 1 1/2yrs but could not sell and the travelling was getting too much for us and the kids so we decided to rent the house out. I changed the ins policy over to tenancy rental ins and was going to ring the mortgage company and the revenue and inform them of the changes but Im a bit worried after reading a couple of threads on here.

We have an ICS ecb tracker mortgage, will they now take this from us and put us on a varibale rate?????? We have to add to the rental income we are getting in €250pm . I know i have to ring the revenue to get the trs taken away but am really worried about the tracker. Its not an option moving back to the house. We are happy where we are now and the kids are settled.

We have 2 other rental props and we are registered with prtb and up to date with rev with regards income etc.

Any suggestions
 
So why not just sell the property?

You're worried about losing the tracker rate but that's just the way it is. If it no longer works as an investment property at the higher rate of interest then would you not be better off selling now? The figures aren't going to improve in the short to medium term.

By selling now you incur no CGT liability - if it is still above what you paid for it.
 
if you see on the first line of my post we cannot sell the house, there is about 6 houses on our road that are for sale, nothing is selling in the area
 
I really don't see why you have to tell the bank that you are renting out your ppr - their interest is in ensuring you pay the mortgage in full and on time. We changed to a tracker mortgage in 2007 on our PPR while it was being rented out (we were living abroad). Its still your family home and. from what I recall, we just told the bank that it was our PPR and was being temporarily rented out and they were happy to give us a PPR mortgage. Now obviously times have changed and the banks are more cautious but I still can't see that you are legally liable to tell the bank as long as you have no issues with paying the mortgage.

If you think about it, lots of people, especially on trackers, got their mortgage rate over the past few years on the basis of a specific LTV ratio (including us). Those LTVs have all changed, so theoretically the terms under which we were lent the money have changed, but I am not planning on calling the bank any time soon to let them know that our LTV no longer complies with the conditions of the mortgage and I haven't heard of anyone else doing so either! Your circumstances have also changed since you took out the mortgage but I don't see why you have any more obligation than I do to inform the bank.

Of course, as you said, you need to inform Revenue immediately and get the TRS cancelled and declare all the income for tax purposes.
 
But the bank will know once they receive the ins policy and see that it has been changed to a tenancy policy. I will read the terms and conditions of the loan when I go home i could be worrying needlessly, again thanks for the reply.
 
Do you mean home insurance or mortgage protection/life insurance policy? If home insurance, why would the bank see it? If mortgage protection, why would you be changing it?
 
Our home ins was up for renewal and we changed it to tenancy ins, a copy of the policy was sent to the mortgage company.
 
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