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Owner Occupier Mortgage on a second property

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  • 19-02-2016 3:54pm
    #1
    Jesper
    Registered Users Posts: 814 ✭✭✭


    I'm struggling to find an answer on this point. If I buy a property and live in it it's an owner occupier mortgage. No problem.
    Now if I decide to build or buy another property to live in full time and rent out my 'existing' property is it possible to get a second 'owner occupier' mortgage? or what are the options?


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    #2
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Most banks will want to change your old mortgage to a BTL one with a higher rate if you do this.


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    #3
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Go to a different bank for the second mortgage.


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    #4
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,412 Mod ✭✭✭✭Gumbo


    Depends. We had our owner occupier mortgage on one property.
    We bought a second in 2015 and the new bank knew we would be renting out our existing property.

    They didn't care and just wanted to know what rental figures we would get, outstanding loan and value etc

    Revenue on the other hand should be notified as we lost our TRS on that mortgage but it's worth notifying them to keep above board as eventually they will find/catch you out.


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    #5
    Marcusm
    Registered Users Posts: 10,339 ✭✭✭✭Marcusm


    Michael D Not Higgins wrote: »
    Most banks will want to change your old mortgage to a BTL one with a higher rate if you do this.

    Most banks would likely ignore the situation unless it was aggressively brought to their attention - a performing mortgage is more important than a strictly enforced one. Most mortgages will require you to notify them if it is no longer your principal residence but do not necessarily mandate a change of terms. As ever, read your Ts&Cs.


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    #6
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,218 Mod ✭✭✭✭godtabh


    Im on the same boat. First bank aren't involved and second bank are aware and want a rental agreement before draw down.

    Next door neighbour rents an apartment he had before getting married. His original bank writes to him on a regular basis asking him to confirm the status on the apartment. Its been over 7 years since he moved so as far as he is concerned he is golden i.e. status of limitations or some such


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    #7
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    I got an owner occupier mortgage for a second home with a different bank. You need to let revenue know you are no longer living in the first house and they will stop your TRS as you are no longer entitled to it as you are not residing in the property. The revenue sent our first bank a letter letting them know we were no longer entitled to the TRS as we were not residing there and the first bank have made no other changes to our mortgage other then stopping TRS.


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    #8
    Jesper
    Registered Users Posts: 814 ✭✭✭Jesper


    Jen44 wrote: »
    I got an owner occupier mortgage for a second home with a different bank. You need to let revenue know you are no longer living in the first house and they will stop your TRS as you are no longer entitled to it as you are not residing in the property. The revenue sent our first bank a letter letting them know we were no longer entitled to the TRS as we were not residing there and the first bank have made no other changes to our mortgage other then stopping TRS.

    Is TRS - Tax relief at source?

    what is this? I bought my house late in 2014 so I'm not sure I was ever entitled to it in the first place?


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    #9
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Jesper wrote: »
    Is TRS - Tax relief at source?

    what is this? I bought my house late in 2014 so I'm not sure I was ever entitled to it in the first place?

    It is a tax relief on the interest paid. After the end of 2012 no mortgages qualified for this so you won't need to worry about it.


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    #10
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,412 Mod ✭✭✭✭Gumbo


    Jesper wrote: »
    Is TRS - Tax relief at source?

    what is this? I bought my house late in 2014 so I'm not sure I was ever entitled to it in the first place?

    Correct.
    You may not be actually getting it in the first place.
    We had it as we got our mortgage in 2006.


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