Accidental landlord looking To sell

Discussion in 'Mortgages and buying and selling homes' started by CatherineK, Mar 20, 2017 at 1:53 PM.

  1. CatherineK

    CatherineK New Member

    Posts:
    1
    Hi all,

    A few years ago we had to move county for work and have rented out our house since then as we were unable to sell at the time due to negative equity. We are ourselves are also renting.

    We have been paying tax on our rental income but never told bank as there was no way we were ever going to be able to afford any increase in monthly payments with our tracker mortgage or loss of it. Our mortgage is with UB which started in 2005 and there has never been any missed payments.

    So now we want to sell it...my question is has anyone else had any issue with bank in a similar situation? Got caught out? As a seller do I have to notify the bank of my intention to sell etc?

    We would want to sell first then look to buy. We are happy where we are renting so no rush to buy.

    I would appreciate any advice or assistance.

    Thanks in advance!

    Catherine
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    30,717
    A slightly tricky situation.

    Ulster Bank allows people with tracker mortgages to take out a special mortgage for two years at ECB +2%. more information

    So it's important that you apply for this mortgage first. It does not apply to investment properties.

    So I think you should apply for Approval in Principle first and see how you get on. You can tell them that you have rented it out temporarily while trying a new job. I doubt that they would mind very much.

    It is not the practice of any bank, other than Danske, to increase the rate if a person rents out their former home.

    Brendan