# Question on Tracker Mortgage



## regvw (22 Sep 2011)

Hi, 
I currently have a tracker morgage, I am thinking of renting out my property and buying a new house with a new morgage. 

Will the bank take my tracker morgage off me on my current property ??

Thanks
Reg


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## Gekko (22 Sep 2011)

They might if you tell them (unless you're dealing with the same bank).

Ergo, don't tell them.

Make sure you meet your tax and insurance obligations (e.g. register with the PRTB, submit income tax returns, pay any tax that arises, pay the NPPR charge, make sure your property's insured appropriately etc). But as for the bank, tell them nowt!


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## marksa (23 Sep 2011)

most likely you have to give your bank a copy of your house insurance and that will indicate that it is rented - if you have advised the insurer. From that the Bank will ascertain that the property is rented. Also, if you change your address for postal purposes for the bank, they will see that it is different to the address of the loan and draw the conclusion that it is rented, or at least investigate. In my opininion you are better off coming clean. dishonesty usually catches up with the dishonest, and particularly with something as long-dated as a mortgage.


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## aristotle (23 Sep 2011)

You could buy a second insurance policy on the house to cover it as a rented property?


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## ClubMan (23 Sep 2011)

What happens when you switch from owner occupier to landlord may depend on your mortgage agreement and lender. It may be a condition of your mortgage agreement that you inform them of any change in owner occupier status. Most people would be up in arms if the lender unilaterally ignored a condition of a contractual agreement.


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## Luckycharm (23 Sep 2011)

Clubman is back how come you haven't posted that much in last couple of years - have you been away?


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## Gekko (25 Sep 2011)

marksa said:


> most likely you have to give your bank a copy of your house insurance and that will indicate that it is rented - if you have advised the insurer. From that the Bank will ascertain that the property is rented. Also, if you change your address for postal purposes for the bank, they will see that it is different to the address of the loan and draw the conclusion that it is rented, or at least investigate. In my opininion you are better off coming clean. dishonesty usually catches up with the dishonest, and particularly with something as long-dated as a mortgage.


 
"Most likely"...in my experience the important thing is to ensure that the property is appropriately insured...not to notify the bank of this fact.  And with (say) apartments, no adjustment is generally required as the block policy suffices.

As for changing the postal address, you just don't do that in relation to the bank correspondence.

And as for the ltotally unhelpful ittle proverb at the end of your post, I find your use of the term "dishonest" grossly offensive.  Perhaps in future you could leave the pious ranting out of it?


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## Delboy (25 Sep 2011)

Ignore insurance here for a second.....If you have a tracker on your current home and you then buy a new home  (with a different mortgage lender), renting out the first one, will the 2 banks 'talk' to each other.....i.e. will the new bank have to make any correspondence with the original bank, thus alerting them to a change in PPR, and then losing the tracker!


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## regvw (25 Sep 2011)

Thanks for all the posts guys, I think I will have to get a concrete answer on this one as the feasibility of teh whole project depends on having the tracker morgage on my current property. If I loose it I will not be able to afford the other morgage. 

looks like I need to read my morgage agreement again in detail

Reg


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## Robinbanks01 (3 Jan 2012)

*Negotiating with Bank*

In negative equity to the tune of about € 130k , and have the opportunity to move abroad. Can I tell Bank to accept sale value of house as settlement of mortgage?

What is the fall out?

I have a tracker and thought that I could use this to negotiate some discount with the Bank?


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## wbbs (3 Jan 2012)

No, you can't 'tell' the bank to take the sale proceeds in full settlement as they have to give permission for the sale to go through.   You can ask them if they will agree and see what options they will offer.


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