what happens if you have rented out your property and are renting larger house for your family?

Discussion in 'Tracker mortgages - other than redress issues' started by Slyo2018, 10 Jun 2018.

  1. Slyo2018

    Slyo2018 Registered User

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    Last edited: 10 Jun 2018
    Bank of Ireland's mover tracker.

    We bought an apartment in 2006 and had to rent a larger house in 2011 due to growing family but have held on to the apartment for various reasons and are renting it out. The mortgage was taken out as a residential mortgage with bank of Ireland but there is no specific clause within the contract requiring us to remain living in it. We now wish to sell the apartment and buy a new home. Will we be able to transfer the tracker?
     
    Last edited: 10 Jun 2018
  2. Brendan Burgess

    Brendan Burgess Founder

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    Check out their description of it:

    https://personalbanking.bankofireland.com/borrow/mortgages/mover/starter-tracker-for-mover/


    The Tracker for Movers interest rate is available on mortgage loans only for a house you or your family live in. You must have an existing Mortgage with the Bank of Ireland Group, with a satisfactory repayment record of at least two years.

    If you keep the home you now live in and intend to let it out, you cannot keep the tracker rate from the tracker mortgage loan you now have: we will move you to our normal investment property mortgage rates instead.


    So, in theory, they would refuse you and could say that you should have lost your tracker back in 2011.

    In practice, none of the banks, enforce the investment mortgage rate on homes which are rented out.

    The safest thing to do would be to move back to the apartment and apply from there. You would not have to stay there long.

    But if you just apply for the new product without raising the issue that it is no longer your home, I doubt that they will query it. If they look at your bank statements though, they will see rent coming in and rent going out.

    Brendan
     
  3. Slyo2018

    Slyo2018 Registered User

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    Thanks Brendan for this, very helpful. From what you say the key thing seems to be to be in situ when applying as cautious approach.
     
  4. noproblem

    noproblem Frequent Poster

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    Phew, you're going to have some serious stress and strain ahead of you doing this. Give notice to your present landlord and give notice to your own tenant as well, then move all your stuff into the apartment, go out looking at houses for sale but be ready to advertise your own apartment at the same time. After that make sure you've all your tax affairs from renting in order. Hope then all your stars will align because you then move out all your stuff again and into your new house. I wish you good luck.
     
  5. elcato

    elcato Moderator

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    Or just give tenant notice and collect all post from the apartment. The bank is hardly going to call out to the apartment to ensure you still live there. You just need to be able to communicate via postal system.