Have a look at this thread and all the other threads here for other discussions on this topic.
- Does this mean that I cannot rent out the property without the banks consent? Yes.
- Supposing I had rented it out for the past year or more - how would the bank ever know? In many cases, they wouldn't unless you tell them. That's an ethical question for you.
- Surely the banks are just glad the repayments are being made? Only up to a point. Your tracker rate is probably losing them money. If you tell them you're renting, they could theoretically charge you a higher interest rate. That said, I haven't heard examples of AIB actually doing this to date.
I don't know if the loan offer wording goes further than what Libretto posted, to specify under what circumstances AIB could alter the rate.
I understand that National Irish Bank have the following wording in some (all?) of their tracker offer letters:
‘’The property upon which your loan is secured must remain your Principal Private Residence for the life of your loan. If such property ceases to be your PPR we reserve the right to convert your LTV rate to our then applicable Investment Home Loan rate (fixed or variable as the case may be). You must certify to us that the property is your PPR at date of drawdown and on the date of any renegotiation’’
Will take another look but there is definitely no mention of 'PPR' in entire document.
Hi im in similar boat with ptsb. Tracker got in 2005 but weve no idea what the contract says...would I have to contact ptsb to find out?
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