# Tracker on a rental during COVID



## Zulu2002 (18 Mar 2020)

My wife has an EBS tracker on a house she bought before we met. Since then, she's rented it out and become a stay-at-home mum. Previously she rang to discuss the implications of renting and a very kind agent rang her back advising her not to inform as she'd loose her tracker (this was a long time ago just after the crash). Since then she's/we'ved stayed quiet.

I'm now very concerned with the current situation re COVID. If the tenants lose their jobs they clearly wont be able to pay rent. Fair enough. And if the Gov work something out with the banks, we should be able to pause our mortgage payments, but in doing this we will most probably be exposed as having moved out. And we'll lose the tracker mortgage. 

As it stands we can only barely afford to maintain it and are loosing about €5K per year (in terms of cash flow - I appreciate that this isn't a loss in the overall picture as it's an asset gain, however, on a single income with 2 children cash flow is everything right now) after tax etc.

I presume there's little hope maintaining the tracker at this point?? Can they take it off us??
Can the bank pursue us for not declaring originally??


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## Easel (18 Mar 2020)

You need to relax a bit. You make a huge number of assumptions to arrive at your wife losing the tracker.

Is the rented house in negative equity?

What does the mortgage contract say about a change from ppr to being rented? A number of banks have left homes rented out on the original trackers.


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## Zulu2002 (18 Mar 2020)

Easel said:


> You need to relax a bit. You make a huge number of assumptions to arrive at your wife losing the tracker.
> 
> Is the rented house in negative equity?
> 
> What does the mortgage contract say about a change from ppr to being rented? A number of banks have left homes rented out on the original trackers.


No its about even with 10 years left.
I dont have the tracker contract to hand, but as I understand it, changing from PPR provides the bank with an opportunity to change mortgage accordingly.

I hear you, but its hard to relax in the current situation. We're at DEFCON 2 with panic klaxons going off over here!


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## Easel (18 Mar 2020)

I understand that people are going to be concerned but this is not an issue that you should be remotely worried about.

Assuming your tenants lose their jobs- Assuming that they do not have enough savings to cover the rent until they get a new job- Assuming the banks work something out with the borrowers- Assuming they insist on moving you off your tracker. Sell the property and break even. Move on


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## Sadie105 (20 Mar 2020)

I’m in exactly the same boat.   My biggest concern is that they will back date the increased rate as the apartment has been rented out for a number of years.   I’m not in a position to cover the mortgage myself so will have no choice but to ask TSB for a break if it happens.


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## Gordon Gekko (20 Mar 2020)

Just so we’re clear, the issue here is that people who’ve been hoodwinking the banks are now worried that they won’t benefit from any forbearance. Incredible. Fair enough, allow these people the cashflow benefit, but the banks should be able to take any money owed when the property is sold.


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## Zulu2002 (20 Mar 2020)

Gordon Gekko said:


> Just so we’re clear, the issue here is that people who’ve been hoodwinking the banks are now worried that....


How the air up there on that high horse? 

People are honoring their mortgages and have been for a number of years through thick and thin. Life circumstances have changed and (in my case at least) I was advised that by updating the bank they'd have used that info to move me to a punitive mortgage I wouldn't have been able to afford. Which would have pushed me into dire circumstance and probably default. And we've all seen how the banks have reacted in the past....

But sure. We're the bad guys in this.


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## Sadie105 (21 Mar 2020)

I actually had to move out of the apartment because I couldn’t afford to live there at the time. I wasn’t even aware that I should have told the bank about the rental until two years ago.  I did everything else I was supposed to, stopped the TRS, registered with PRTB, pay tax. It was my own stupidity that I wasn’t aware, ill admit that. I have never made any profit and I’m locked into as its in negative equity and my ex is refusing to sell.  So yes, now I am concerned financially as my husband lost his job in February (not due to the corona virus).  I have my own rent to pay and a child to support on one salary.  The bank are welcome to take money if I ever get to sell it but I don’t have any to give them at the moment and that’s a concern.  


Gordon Gekko said:


> Just so we’re clear, the issue here is that people who’ve been hoodwinking the banks are now worried that they won’t benefit from any forbearance. Incredible. Fair enough, allow these people the cashflow benefit, but the banks should be able to take any money owed when the property is sold.


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## Monbretia (21 Mar 2020)

You'll have to get a copy of your loan offer and terms and conditions and have a read of it.   Back in the boom buy to lets were getting same tracker rates as home loans so it's not a given that they are automatically at a higher rate, they are now but different times!   If your paperwork says nothing about changing a rate if it's no longer your residence then I can't see how they can do it now.


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## NoRegretsCoyote (21 Mar 2020)

Sadie105 said:


> I’m in exactly the same boat.   My biggest concern is that they will back date the increased rate as the apartment has been rented out for a number of years.



How would the bank know unless you tell them?

Banks don't have teams of private investigators tracking down who lives in which mortgaged property.


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## RedOnion (21 Mar 2020)

NoRegretsCoyote said:


> How would the bank know unless you tell them?


I think the fear is, if these posters have to now ask the bank for a 3 month payment break because they're not receiving rent on a PDH mortgage, the bank will start asking questions.

(Sorry, I'm not sure who said what in the thread).


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## NoRegretsCoyote (21 Mar 2020)

RedOnion said:


> I think the fear is, if these posters have to now ask the bank for a 3 month payment break because they're not receiving rent on a PDH mortgage, the bank will start asking questions.



I am not going to give out a roadmap for being duplicitous with your bank, lord knows there's enough of it out there.

However my guess is that there are going to lots of requests for forbearance from PDH mortgage holders over the next while for very genuine reasons.


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## RedOnion (21 Mar 2020)

@NoRegretsCoyote 
I fully agree, there are other priorities at the moment.


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## gimp (22 Mar 2020)

Rang my Bank 6/7 years ago now and asked could we rent house out on Tracker. Yes no problem. Can I get that in writing please just so i have confirmation etc. slight hesitation but ok no problem letter arrived in post a few days later. Ask all they can do is say no. Maybe record the call just in case no letter is forthcoming


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## Greenbean (22 Mar 2020)

gimp said:


> Rang my Bank 6/7 years ago now and asked could we rent house out on Tracker. Yes no problem. Can I get that in writing please just so i have confirmation etc. slight hesitation but ok no problem letter arrived in post a few days later. Ask all they can do is say no. Maybe record the call just in case no letter is forthcoming




Hi , what bank was this ?


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## NoRegretsCoyote (22 Mar 2020)

Greenbean said:


> Hi , what bank was this ?


As has been stated on these threads before, this can depend on your contract.

Read it closely before you contact your bank.


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## elcato (23 Mar 2020)

Simple solution is to email or ring them asking for the payment break. If they say they will send anything out inthe post then use An Post redirection OR ask your tenant to forward any post.


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