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Changing a Private resident to a Rental

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  • 13-06-2012 7:55pm
    #1
    Beetleboy1973
    Registered Users Posts: 5 ✭


    Can anyone help me, i have been tracing through the internet and cannot find an answer,

    Lived in my home for the past 10 years the last 5 the mortgage has been with the Permanent TSB. I also have a rental prioperty. Both are on trackers.

    Do i loose my tracker if i rent out my private house?

    there is no tax relief at source as i have finished with all that. i also know the PRTB, NPPR stuff.

    Has anyone had such problems with the PTSB and been forced out of a tracker? or is it better to run the gaunlet and keep my mouth shut if the mortgage is being paid then there shouldnt be a problem?

    Appreciate any help possible


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Beetleboy1973 wrote: »
    Can anyone help me, i have been tracing through the internet and cannot find an answer,

    Lived in my home for the past 10 years the last 5 the mortgage has been with the Permanent TSB. I also have a rental prioperty. Both are on trackers.

    Do i loose my tracker if i rent out my private house?

    there is no tax relief at source as i have finished with all that. i also know the PRTB, NPPR stuff.

    Has anyone had such problems with the PTSB and been forced out of a tracker? or is it better to run the gaunlet and keep my mouth shut if the mortgage is being paid then there shouldnt be a problem?

    Appreciate any help possible

    It may force you off your tracker as the tracker rate is based on property being primary principle residence. Since may be rented this will change and thus the back could shift you off this rate. They may agree to keeping you on a tracker.

    You will have to change the insurance if being rented (dont risk this part, not worth it) and they will be obliged to tell the mortgage lender about the change in insurance as they have a vested interest in the property so the lender would find out this way anyways.


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    #3
    johnfitz69
    Registered Users Posts: 17 ✭johnfitz69


    I've never heard of someone loosing their tracker because they've rented their house. It is in the term and conditions so It may be something the bank will look at doing in the future. If you are going to receive rent for the property, get it paid into a bank account that's not with PTSB. There will be no evidence then that its rented.


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    johnfitz69 wrote: »
    I've never heard of someone loosing their tracker because they've rented their house. It is in the term and conditions so It may be something the bank will look at doing in the future. If you are going to receive rent for the property, get it paid into a bank account that's not with PTSB. There will be no evidence then that its rented.

    The house will be effectively an investment property and the bank may view that the OP can no longer utilise their residential rates. it is happening out there.

    The mortgage lender will be told of the change in insurance policy though so they will find out. If the insurance isnt changed the OP is in some bad waters, if something happens to the house the insurance may not cover it.


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    #5
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    I've not seen one instance of a bank taking someone of a tracker in your senerio op.

    Simple change you hi cover to building only. Yes they will tell the bank.

    I asked this very question a few times on boards and no one could show an actually example or had even seen it happen. I've also enquire with mortgage centres of 3 banks and again no evidence.

    Chris85 is correct, it may be the policy of the banks but it's enforcement would be impossible. I'm pretty sure a bank would try doing it but a mortgage holder is not legally required to swap over.

    Rental income will have to be declared through usual avenues.


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    #6
    GismoBaby
    Registered Users Posts: 226 ✭✭GismoBaby


    I have a PTSB tracker mortgage which i took out in 05 to buy my house.

    Lived in for a few years but it has been rented out for the last 3. I didnt tell the bank it was rented, at one stage i applied for a mortgage holiday for 3 months in a different county than the house is in and told them it was because i couldnt get a tenant, which was true. I have it insured as rented, so as someone said the bank must have been told of the change in insurance.

    To this day ive heard nowt from the bank or anyone else for that matter.

    I cant see them taking you off your tracker, when they havent taken me off mine!


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    #7
    DrPhilG
    Registered Users Posts: 12,326 ✭✭✭✭DrPhilG


    GismoBaby wrote: »
    I have a PTSB tracker mortgage which i took out in 05 to buy my house.

    Lived in for a few years but it has been rented out for the last 3. I didnt tell the bank it was rented, at one stage i applied for a mortgage holiday for 3 months in a different county than the house is in and told them it was because i couldnt get a tenant, which was true. I have it insured as rented, so as someone said the bank must have been told of the change in insurance.

    To this day ive heard nowt from the bank or anyone else for that matter.

    I cant see them taking you off your tracker, when they havent taken me off mine!

    Music to my ears. I moved recently and have been sweating over PTSB possibly kicking me off the tracker as it would bump up my mortgage by a few hundred € a month. Haven't rented the house out yet but I will be changing the insurance etc when I do.

    My mortgage started in 2006 and moved onto a tracker in 2008 or 2009. Best bit was I was going to renew another 2 years worth of fixed at around 5% (I think) but faffed about too long and missed the deadline so they automatically moved me onto the tracker. Best balls-up I ever made.


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