# Banks forcing you off your Tracker mortgage if you rent out your house ?



## ConorSwan

I was talking to a friend yesterday and he said he read an article in a weekend paper saying that the banks we going to review the mortgage rates of those people who have rented out their family home.
He is on a tracker rate and he is emigrating to Aus. and is worried that if he rents out his house the bank will take away his tracker rate and force him onto a higher investment mortgage rate.
Has anyone heard of this or read the article ?
many thanks


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## Sunny

Most mortgage contracts state that the bank is entitled to re-examine the interest rate if the property stops being your primary residence. How hard the banks will drive this is hard to know. They will have to strike a balance.


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## Macstuff

There are loads of threads on here re this topic. Check out the property investment section for more. 
I am on a tracker with NIB and my contract states I will lose it if my property becomes a rental. 
The general concensus on AAM seems to be:
a) check your mortgage terms and conditions to see if its mentioned. 
b) if it's not mentioned then it's unlikely that the bank can change you off the tracker - but they might try. It'd be hard for them. 
c) In reality, the only way they will find out is if you tell them or if they see from your property insurance cert that it's an investment property. There is no connection between the banks and the Revenue or other govt depts handling rental property.


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## ConorSwan

many thanks Macstuff


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## ClubMan

Macstuff said:


> There is no connection between the banks and the Revenue or other govt depts handling rental property.


They might also notice when a claim for owner occupier mortgage interest tax relief is terminated when changing the property from _PPR _to rental property?


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## serotoninsid

ConorSwan said:


> many thanks Macstuff


As above -there are a few threads on this very subject already - a couple of which have been recently active - so well worth doing a search and reading up.

In relation to the article, it was on the front page of last Sundays - Sun. Biz. Post.


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## agwa

I'm not sure I have a copy of my mortgage contract - where do I get it?  My solictor or the bank?

Cheers,
Agwa


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## 44brendan

Both can provide a copy. Solicitor may charge as the file will be vaulted and may take time to access.


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## fkells

I also have a tracker and wanted to find out if I can rent out my house and still keep my tracker.

My situation is slightly different. I started out with a 5 year fixed from First Active. The fix term came to an end this summer and we were offered a tracker rate (much to my delight). We took our mortgage out first day with First Active which has since been taken over my Ulster Bank.

I have read the Standard Mortgage General Terms and Conditions which i got from First Active and the Loan Offer but nothing is mentioned about the tracker rate being taken off you if the property changes from a residential to investment.


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## wbbs

First Active were offering Buy to Let mortgages on the same terms as home loans for a number of years so if you can't find any reference to it in the t&c's you should be fine.


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## Bronte

ClubMan said:


> They might also notice when a claim for owner occupier mortgage interest tax relief is terminated when changing the property from _PPR _to rental property?


 
It's none of the banks business as your tax affairs is between you and revenue.  And the bank cannot ask you anything about it.


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