Mortgage on Rental Property remained on homeloan not buy-to-let

J

jamo67

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  • Purchased PPR in 2005 with mortgage as a single (EBS Variable Rate)
  • Got married in 2009
  • Moved to new house end of 2011 and took 2nd mortgage with same lender (same bank official) in joint names. Rented original House Jan 2012
  • Understood from the official that my variable rate didn't change on original property which is now rental (to this day still Variable)
  • I am now thinking of selling Rental property in the near future

Question
When I check rates the Buy to let rates are higher than Standard Variable, should I have been on higher rates all this time? I get all my statements for both properties sent to my home address (my now PPR). Has the bank made a mistake or is this normal when switching from PPR to Rental as opposed to purchasing mortgage from the get-go as BTL? I know i sent letter to revenue at time to cease TRS.

I am now worried that if I sell the rental property the lender will look to clawback the difference in interest rates for the past 12 years.
Appreciate some advice before broaching this with the lender
 
Unlikely, just sell it & redeem your mortgage. You dont need to say anything to bank except requesting redemption figure.
 
Thanking you for the prompt reply. I just wouldn't associate "unlikely" with the banking sector. I take it the mortgage is incorrect? My LTV is >80% at this stage and is 4.3, the Buy to let is a percentage higher.
 
Very unlikely, a friend! Just sold an investment property that was initially a ppr (indeed the mortgage contract specified a higher rate would apply should the property ever NOT be a ppr). Loan was redeemed without any queries on status of property

P.s. lender was pepper in the case
 
"I am now worried that if I sell the rental property the lender will look to clawback the difference in interest rates for the past 12 years.
Appreciate some advice before broaching this with the lender"

This will not happen.

Simply request the redemption figure as normal part of selling house.
 
I was in same position a number of yrs ago with v handy UB tracker and just paid it off without ever being moved to BTL rate. I had my second PPR mortgage with UB as well and no issue
 
I wouldn't give it a second thought, back when you took that mortgage BTL rates were the same as mortgage rates, it's totally different trying to compare it to taking out a mortgage now on a BTL. There are many many people out there with mortgages on rentals that are similar rates to home loans due to when they took them out. That was the deal done at the time.
 
It is difficult to avoid being exploited by big companies. The tracker mortgage issue, the excess rates charged to borrowers who cannot switch by vulture funds, confusion marketing by health insurers and mobile phone companies. Fixed period contracts with appalling customer service by mobile phone companies again, bait and switch sales tactics by accountants, solicitors and similar service providers (when you are looking for a service you meet the experienced star of the office, the work is actually done by a cheap trainee).

However it takes two to make a relationship, the passive acceptance of poor treatment by the public feeds into this.
 
Seems to me that if you don't voluntarily bring it to the attention of the bank, you will be fine as others have said, just ask for the redemption figure, pay it off and that will be the end of it.
 
jamo67 said:
I am now worried that if I sell the rental property the lender will look to clawback the difference in interest rates for the past 12 years.
Appreciate some advice before broaching this with the lender
Click to expand...
This won't happen, my first mortgage they could not change to a BTL rate for me as my contract didn't allow it. Another mortgage where I took a case to the ombudsman they mistakenly gave me the fixed family home rate for a few years and the decision was that as it was their mistake they had to live with it (dispute was over rates and that came up).
 
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