Renting principal residence - do I need to change to buy to let mortgage?

Beanom

New Member
Messages
2
First post. I hope someone can assist.

My mother has had to move in with my sister due to serious health issues and wont be returning to her home, in Northern Ireland.

We own one property, the one we live in, which has a mortgage. Based in Dublin.

Post Covid plan - we are contemplating letting out our home in Dublin, moving North and renting my mothers home for a 12 month period. Not sure about selling up and moving there permanently without trialling it all first. Thought this might provide ideal way. Work remotely so currently it doesn't matter where we live from that aspect.

Contacted two letting agents before Covid for information on their services and what we need to do re: tax, prtb registration etc.

Asked both of them do we need to change our residential mortgage to a buy to let. They said no. Is this correct?

This is not sitting right with me.

As I understand it, we have to let the bank know if we don't live here for correspondence etc - for example they will continue to send annual mortgage statements to the address of the property mortgaged?
 

NoRegretsCoyote

Frequent Poster
Messages
1,308
You can ask the bank to have a different correspondence address to the mortgaged property. This is not unusual if for example you were doing renovations.

You may be obliged to tell the bank about tenancy so that they can put you on a (much higher) BTL rate. Check your mortgage contract carefully to see what your obligations are.
 

luckystar

Frequent Poster
Messages
200
It really depends on mortgage contract/when you took it out. Recent mortgage offers (some) stipulate that mortgage is for residential and should the property be let out then you must advise the bank.
 

collieb

Frequent Poster
Messages
200
My understanding is that in order to qualify for residential rates, the house was to be your PP when you were taking out the mortgage, i.e. at the start. However, unless your contract specifically provides otherwise, there is no obligation for it to remain your PPR during entire duration of the mortgage. But as mentioned, you need to check your mortgage to see if this is covered. If it is not mentioned in the contract, then i see no way you could be obliged to inform the bank if it is no longer your PPR.
 

Beanom

New Member
Messages
2
Many thanks. Of course, check the mortgage contract. Will do that and come back if further queries. Thank you very much.
 

Bronte

Frequent Poster
Messages
13,811
People change their correspondence address for various reasons. The bank can’t know you’ve changed actual address unless you inform them.
 
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