Can I lose my tracker mortgage?

[Itronoc]

Dear all,

I have long been a fan of Ask about Money. This is the first time I have chosen to post. Please forgive me if it's in the wrong place, or if the question has been answered before.

In 2007, I got a mortgage from Bank of Ireland for 260,000 as a first time buyer/owner occupier.

It's a tracker mortgage (+ 0.85% above ECB) so at the moment my rate is 1.85%.

It's a 2 bed apartment in Dublin.

To cut a long story short, I emmigrated in early 2009 and am letting out both rooms in the apartment.

To my worry, I have read posts that I may loose my tracker rate with Bank of Ireland, because I no longer am owner/occupier.

However, I have also read that the Bank of Ireland cannot take away my tracker rate, regardless of whether or not I am still owner/occupier.

Which is it? I hope Bank of Ireland cannot take away my tracker, but are we sure about this?

Any help would be appreciated.

Many thanks,

Itronoc

 

[Sunny]

Usually if you stop being a owner occupier, you lose the original deal you were on because you are now considered an investor. It should say what happens in your mortgage contract.

 

[BazFitz]

Don't even dream of telling the bank that you're no longer an owner occupier in respect of the property. Just keep paying the mortgage.

For clarity, banks cannot take an owner occupier's tracker away from them. Similarly, they cannot take an investor's tracker away from them. However, you took out a tracker mortage and the primary characteristic of that mortgage has now changed. Accordingly, the bank would be within their rights to alter its terms. But how can they do that if they never know (i.e. if you keep paying the mortgage and don't do anything naive such as changing your postal address for correspondence with the bank).

 

[aristotle]

Don't even dream of telling the bank that you're no longer an owner occupier in respect of the property. Just keep paying the mortgage.

For clarity, banks cannot take an owner occupier's tracker away from them. Similarly, they cannot take an investor's tracker away from them. However, you took out a tracker mortage and the primary characteristic of that mortgage has now changed. Accordingly, the bank would be within their rights to alter its terms. But how can they do that if they never know (i.e. if you keep paying the mortgage and don't do anything naive such as changing your postal address for correspondence with the bank).

But you would need to change your insurance so that you are covered for tenants\letting and normally your bank will have an "interest" on the policy, hence they may find out that way.