Switching from managed SVR (MVR) -PTSB

A

Agent 47

Registered User
Messages
90
Hopefully someone has the solution to this issue for me.

We bought house A and it became our PPR for 6 years before we moved to House B which we currently reside in.

We rent House A (at well below market to stable tenants) but it is on a managed SVR with PTSB of 3.7%. House B is on a low mortgage tracker (1.35%).

I see on Bonkers.ie I could switch to another provider offering an SVR of 3 % as the LTV<50%.

I contacted PTSB to seek a lowering of the 3.7% MVR on House A indicating that there are switching offers as low as 3%, but they will not budge.

What view would a switching bank take to this situation as technically we are switching what is a residential mortgage from PTSB to them as provider. Will they get on their high horse and seek a BTL rate?

Will the new provider use the Central Bank rules in looking at ones ability to repay the mortgage or look at credit history? We have in that regard 14 years credit history on House A and B.

If House A were to become vacant, would moving into it and starting the switching process take long to do?

At the end of the day I want to reduce the SVR of 3.7%, with competition in the market and sufficient equity in own house and House A that should be possible. Also we are in this country an outlier in the charging of high interest rates, it seems only just that one can avail of low offers when one can.
 
Are you sure it makes financial sense to let out House A at below market rent while carrying a loan @3.7% (or 3% for that matter)?

If you have significant capital tied up in House A, you might find that you could get a better return elsewhere - maybe even by paying down the tracker on House B.

Agent 47 said:
What view would a switching bank take to this situation as technically we are switching what is a residential mortgage from PTSB to them as provider. Will they get on their high horse and seek a BTL rate?
Click to expand...
I would imagine any other lender would treat this as a RIP loan because, well, that's what it is!
 
Thanks Sarenco, touchy subject raising rents, could trigger a revolt with tenant and seeking this, that the other to be replaced, thus wiping out any gain. I know better the next lease what to include as I nearly got caught for the water charges.

I am always cognisant that any rise only gives a 50% further to the taxman while I get 12.5% W&T per year on replacement items.

House A may come back to me soon enough as tenants are there a few years and will eventually move. In that scenario I will seek to restructure. Key question is, do Central Bank rules apply or ones ICB and repayment history?
 
Well, the Central Bank rules for RIPs only relate to the LTV (70% max) but obviously individual lenders have their own underwriting criteria.

If it's not a RIP then the usual Central Bank rules for SSBs would be applicable (max LTV of 80%; 3.5 times LTI) and, again, individual lenders will have their own underwriting criteria.
 
Hi Sarenco, just reading the CBI rules FAQ briefly and it says The LTV and LTI limits do not apply to refinancing of a housing loan (i.e. switcher mortgages) or housing loans entered into in order to address arrears or pre arrears. That would seem to be at odds with what you indicate as I would be switching?

How does it work then if I wish to switch mortgage provider and the LTV and LTI do not apply? What do the lenders work off in terms of assessment?
 
Sorry - you're quite right, I forgot the Central Bank limits exclude switchers for some odd reason.

Mind you, I doubt it makes much practical difference. Lenders will apply their own underwriting criteria, which won't be radically different from the Central Bank's limits.
 
You must log in or register to reply here.
Back
Top