Advice needed re changing mortgage type

M

Mez!

Registered User
Messages
57
Hi all,

Currently I have a very favourable tracker mortgage of .7% +ECB on my house which I live in and is the only property I own. Lets call it house A.

I am seriously considering purchasing another property which I would intend on living in as my primary residence. Lets call it house B.

If I purchase house B, I would rent out house A.

Now I realise that I would have to notify my bank and advise them them that house A is no longer my primary residence and that I am renting it out. This would change my mortage type from residential to investor (I assume).

My question is this; Is there any way for me to retain my tracker mortage?

Is is possible to transfer it plus a top-up (which I know would change my LTV ratio, therefore my .70 would increase) to house B or somehow retain the tracker on house A?

I understand the pros and cons of purchasing a house, renting out etc at this time and I am not looking for advice on that matter.

Hopefully AAM contributors can help me.


Many thanks.


*****Forgot to include. When I purchased house A (a new house at that time) I was a first time buyer and did not pay stamp duty. Is there any retrospective stamp duty or other tax liability on this house if I go ahead with the plan above? Also, would TRS be available on the (investor) mortgage for house A?
 
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check your loan offer and then call the bank and ask them what the situation would be. you can't shift mortgages around properties unforutnately, if you could then I would buy your mortgage off you! and use it to finance something else because the margin on it is excellent.
 
Hi Mez,
It more than likely that your lender who approved your mortgage at .70% over ECB which is an excellent rate offered this for your private dwelling house. You need you or your Solicitor to check the conditions of your loan offer to see if you changed the status of your mortgage from your private dwelling house to an investment property do you lose the tracker rate.
As regards you moving to a new property this a is a totally new mortgage on that property and the good news is that the variable rates have reduced by 1% & will more than likely reduce by a further 1% within the next rate 3 months. IN the meantime remember that all tracker rates have been withdrawn.
Hop this helps
Spin
Mortgage Broker
 

Hi Mez,

It is very unlikely that you will be able to retain your tracker mortgage if you convert the PDH to a residential investment property (RIP). In this climate banks are taking a very strict view. What I foresee happening is the bank converting the PDH tracker mortgage to a RIP investment (variable or fixed rate) mortgage. RIP interest rates are also higher than PDH rates unfortunately.

As ever check your terms and conditions. Hopefully I'm wrong and the bank take a more lenient view.

In relation to clawback of stamp duty, when did you buy the property? Is it over two years ago?

TRS is not available on investment mortgages.
 
NorfBank said:
In relation to clawback of stamp duty, when did you buy the property? Is it over two years ago?

TRS is not available on investment mortgages.
Click to expand...

Hi Norfbank,

I bought house A in 2004, so I guess that means no stamp duty clawback???
 
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