# Renting out property when on a tracker mortgage with KBC?



## PeterDublin

Hi Everyone,

I am fortunate enough to be on a tracker mortgage with KBC. However, I am strongly considering renting out my property in the near future.

I have read the terms and conditions of my loan offer from KBC on several occasions, but cannot find any reference to forfeiting my tracker deal if I rent out the property. (I could be missing it though!)

Do you think that I could lose the tracker deal if I rent out my house?

Is anyone else, on a tracker mortgage with KBC, renting out their property?

Should I phone the bank for advice? Or will this just create a red flag on my account...

I would appreciate any advice on this.


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## Katelyn

I'm on a tracker rate with KBC and rent out my property.  However I drew down the mortgage as a residential investment mortgage back in 2002.  I was initially on a fixed rate and only changed to the tracker in August 2008.

If you want a definite answer to your question then write in and ask if you rent out your property is there any implication to your rate.


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## GarethGmail

Hi PeterDublin

I'm in almost exactly the same situation. I'm with KBC and want to find out if renting out my apartment will affect my tracker. 

I tried to research as much as possible myself - one issue I have is  that my mortgage was originally taken out with SVR and then only a few  months later I switched to tracker. Does this mean the documentation on  my mortgage (SVR) is no longer valid(which btw mentions nothing about  informing them if I change from private residence to investment)? I  can't seem to find anything substantial on the change to tracker except a  single page 'agreement' that has very little detail on it. 

I too am concerned about making the call to KBC to ask about this as I'm  pretty sure their first question back will be : 'account number  please?'.


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## PeterDublin

GarethGmail said:


> Hi PeterDublin
> 
> I too am concerned about making the call to KBC to ask about this as I'm  pretty sure their first question back will be : 'account number  please?'.



My thought exactly! As Katelyn said, I guess the only way of getting a definitive answer is to get confirmation from the bank in writing. However, I feel that this will also make the bank suspicious of whether or not I am an owner occupier. 

I cannot see any reference in my loan offer to losing the tracker if I rent out my property. Nevertheless, I would feel more secure having this in writing!


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## Dustyman

I'm with KBC and I initially had a 3 yr fixed rate, it then moved to a tracker. During this time, fixed and change to tracker, I let the property. 
They did not change the initial terms as per agreement. I let it for 10 months and I'm back living there now. No change whatsoever, still on the tracker.
But that is not to say they could change? But they didn't with me.

P.s I did not tell KBC in advance that I was letting the property. I just let it and hoped for the best. When it was let I wrote to them. They acknowleged in writing my property had changed to investment property. I had no problem. Remained on the tracker. I informed them again I was back living there and they just wrote back, when I sent proof ESB bill etc., confirming the property was now again a 'residential'. I had no problem. Tracker remains.

P.p.s I never have missed a payment etc have a clear credit record. Dont know if this influenced them? i.e not to rock the boat!

Hope this helps??


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## Bronte

You don't have to tell the bank anything but you must stop your TRS via the revenue, and you must inform your house insurance.


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## Dustyman

Gekko said:


> Exactly - Ensure that you meet your obligations in relation to tax, NPPR, insurance etc but telling the bank is crazy.



I told the bank, as you are legally obliged to I believe. Had no problem. Tracker remained insitu. Wasn't crazy. Had NO problem. Everyone to their own. BUT, having said that, next time I rent, if I do, I won't tell the bank just in case.....!  But do inform the revenue, change your insurance, register with NPPR.


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## Bronte

Dustyman said:


> I told the bank, as you are legally obliged to I believe.


 

What legal obligation are you referring to?


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## aristotle

Bronte said:


> What legal obligation are you referring to?


 
Its usually stated in the T&C's of the mortgage agreement that you have to inform the bank if renting out your property.


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## Dustyman

I do recall 'Family Home' being mentioned in the T & C's. I think 'primary place of residence' could be in there somewhere too. I know it to be a fact that one should make changes to their insurance if you have a property let. I suspect that if it was that easy (i.e people getting mortgages and then letting out property et cetera, for what ever reason) then there would be no such thing as a 'buy to let mortgages', investment properties et cetera.

However going back to the original posters question. All I'm saying is that in MY case with KBC. I told them I let it and I had no problem. I was under the impression that I was legally obliged to do that. Maybe I was wrong. 
Next time I may think twice as things change. Not sure, will see if I am in that position again.


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## Bronte

I have a 'family home' mortgage on an investment property.  The terms and conditions for all mortgages are not the same.  In any case if renting and worried the bank will increase your interest rate why bring trouble on yourself by informing the bank.


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