1st time landlord

Jjapartment

Hi there,

I am becoming a first time landlord in the next few weeks as I am moving to London to work.

I'm currently on a tracker mortgage and my question is will I lose my tracker rate once I let the bank my status.

Any advice/ links would be great/

Thanks
John

Andycap8

How/why would your bank find out about a change in status?

So long as the mortgage keeps getting paid, no one will ever ever look at your mortgage.

The only person you need to contact, is your insurer and change your policy to a landlord policy.

Baby01032012

As above no legal or ethical obligation to let them know.

Insurance no. 1 change to landlord policy
If receiving TRS need to notify revenue
If non resident you need someone here to collect rent otherwise tenant can withhold 20% and pay to revenue
Register tenancy with RTB
House will no longer be your PPR for CGT relief if you sell down the line
Will need to pay max next year on any taxable amount

Gone way off topic but wanted to point out the bank is least important consideration

ross2010

It depends on the terms of your tracker afaik. Mine was purchased as a PPR, like yours, life events took over and we were in negative equity so hence now accidental landlords. Nothing in our terms said anything about them taking back tracker if we were not PPR. We declared and paid our tax and changed our insurance (which would have been notified to them) as Landlords and nothing changed. We are with Ulster Bank. But you should check your mortgage terms just in case. Just to add if you receive interest relief you should notify Revenue so they can stop that relief as you are no longer eligible once its a rented property.

Samuel T. Cogley

Stopping TRS is a massive tip off - so far nothing from UB telling us we're moving to a BTL rate (touch wood) - 2 years on at this stage.

Vet you tenants very carefully, it is possible to insure against lost rent for 11 months, given you can write it off against tax it might be worth doing.

Edit: Sorry to clarify we did stop TRS - poster below id right not stopping it will catch up on you.

4ensic15

Baby01032012 wrote: »

As above no legal or ethical obligation to let them know.

The mortgage will have a clause requiring you not to part with possession without written permission from the bank. Widely ignored, but still there.

Don’t tell the bank would be my advise, that’s how most people do it.

whippet

Not stopping TRS will catch up on you .. stupidly did this a number of years back and revived an nice letter from revenue the first week of January looking for €2.5k back !!

Jjapartment

Thanks for that. I've contacted the bank and there is no change in the interest rate. However they now needs 6 months bank details/ new address/ copy of ID etc. Did anyone need to do this?

Thanks
John

Why did you tell them ffs? Have people no cop on nowadays?

davindub

Jjapartment wrote: »

Thanks for that. I've contacted the bank and there is no change in the interest rate. However they now needs 6 months bank details/ new address/ copy of ID etc. Did anyone need to do this?

Thanks
John

They are just confirming the new address for you. That's all.

davindub

Jjapartment wrote: »

Thanks for that. I've contacted the bank and there is no change in the interest rate. However they now needs 6 months bank details/ new address/ copy of ID etc. Did anyone need to do this?

Thanks
John

They are just confirming the new address for you. That's all.

davindub

Kyng Plump Mummy wrote: »

Why did you tell them ffs? Have people no cop on nowadays?

It’s hurts my head that people are so stupid.

Seems to have caused no issue for the op so stupid I don't see. All above board, no worry seems preferable than worry about foreclosure.

worded

Kyng Plump Mummy wrote: »

Why did you tell them ffs? Have people no cop on nowadays?

It’s hurts my head that people are so stupid.

Spoke to a stressed old guy on hols once where he was planking it as the bank
Had discovered he had let his property for years without telling them. He let the cat out of the bag himself by accident when speaking to someone on the phone at the bank.

His worry was that the mortgage rate for a buy to let differed to a person living there. He let it out a few years after living there.

Don’t know what the outcome was

The banks are not your friend let’s face it, particularly if you are on a tracker let’s face it