convert PPR to BTL to avail of holiday home mortgage?

paddytheape

Registered User
Messages
31
Applied for mortgage to buy second home (as holiday home in my home town) had verbal approval from branch manager saying he'd get it through on an exemption as my deposit isn't adequate, however, head office came back and said no exemptions were possible. My bank then suggested we put in application stating mortgage was for my PPR and that my current house would become a BTL. He asked where i work and whether my employer could provide evidence of my working down the country, true enough, i do cover the south and west of Ireland for work purposes and so the application has been submitted. However, this smells fishy to me and I'm wondering,is this legal? Bank tells me i will have approval in a weeks time. . I'm under time pressure to avail of a particular house suited to my purposes which is currently on the market. I will need to remain in my current house, not convert it to BTL so perhaps this is just a way to get it over the line. Do the bank care, obviously not but I'm sure Revenue will.
Has anyone any experience of this and any advise on how to proceed? I accept their mortgage, buy the holiday home (there will be no tenancy here) and remain in my PPR?
Thanks for reading.
 

Brendan Burgess

Founder
Messages
38,452
Why would Revenue be concerned?

This is a classification by the lender and should not impact revenue.

You will not be claiming interest relief on either mortgage.

When you go to sell your family home, it will be exempt from CGT.

Your holiday home will not be.

Brendan
 
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