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Retain Tracker Mortgage

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  • 15-09-2010 10:19am
    #1
    ambro
    Closed Accounts Posts: 1 ✭


    I have been considering renting out my own home and renting a smaller property. I have a tracker mortgage on my home if I rent it out and it is no longer my principle residence can the bank revoke my tracker? Anyone any experience of this?


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    #2
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    ambro wrote: »
    I have been considering renting out my own home and renting a smaller property. I have a tracker mortgage on my home if I rent it out and it is no longer my principle residence can the bank revoke my tracker? Anyone any experience of this?

    Unfortunately yes. In fact, not only would you be moved to a variable/fixed rate, but you would also be moved to a "buy-to-let" rate which is even more expensive. This is because your current loan is a "home loan" whereas, by drastically changing the underlying security, it would now be classified as an "investor loan", thus riskier, thus more expensive.

    You would also likely face increased costs with regards your mortgage interest relief, stamp duty, capital gains etc should they apply. Whatever rent you would take in would also be subject to tax and/or affect social welfare payments.

    Basically, you would be moving from "struggling home-owner" to "wealthy landlord"!


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