Fixed rate offer on investment mortgage from BOI after transfer from KBC

[ticn99]

Hi All

I've reveiced a letter from BOI saying they could offer me a fixed rate 3.9% rather than current variable 4.25% I'm currectly on since the takeover of mortgage from KBC...this sounds too good to be true on an investment mortgage?

 

[Brendan Burgess]

How long is the fix for?

Actually, it doesn't matter that much. It's a good rate, even if it's just for a year.

Mortgage pricing is a bit odd at the moment, but even still that is better than the home loan rates they are offering.

I assume you are not on a tracker.

Brendan

 

[RedOnion]

I'm assuming BOI don't know this is a BTL property and it was your former home? So you're being offered PDH rates.

 

[ClubMan]

I'm assuming BOI don't know this is a BTL property

If it's this one then presumably they do?

Moving from Buy to let (investment) mortgage with KBC to ?

Hi I currently have a 4.25% variable buy to let rate (investment) with KBC, this is defaulting to BOI soon... I can't find any lenders willing to take on a switcher at a rate any lower that that, be it fixed or variable. Avant don't take investment mortgages? Any suggestions?

www.askaboutmoney.com

 

[RedOnion]

If it's this one then presumably they do?

Moving from Buy to let (investment) mortgage with KBC to ?

Hi I currently have a 4.25% variable buy to let rate (investment) with KBC, this is defaulting to BOI soon... I can't find any lenders willing to take on a switcher at a rate any lower that that, be it fixed or variable. Avant don't take investment mortgages? Any suggestions?

www.askaboutmoney.com

No. No lender is offering 3.9% on BTL property.
This is the OPs former home:

Tax on 2nd property

I ended up as an unexpected landlord when the economy crashed. I bought a house for a family of 5 and my 2 bed apartment never sold, I've never declared tax on the rental. If I was to declare it now would I have to pay back tax on it or just start paying from now? Thanks

www.askaboutmoney.com

 

[ticn99]

The property was our original home, but would have been declared a BTL when we purchased our 2nd home...

I've a funny feeling that, in BOI taking up the mortgage from KBC they somehow see it as a PDH rather than BTL...

Now the predicament I have is if I take up their offer of 3.9 fixed...they will no doubt do some further checking and realise it's BTL and will then pull the plug on the offer and try to increase current variable rate of 4.25%.

I should probably do nothing and stay as I am???

 

[RedOnion]

Now the predicament I have is if I take up their offer of 3.9 fixed...they will no doubt do some further checking and realise it's BTL and will then pull the plug on the offer and try to increase current variable rate of 4.25%.

KBC had you on a PDH rate before it transferred. 4.25% was their SVR for PDHs, so they had never moved you to a BTL rate.

Was your main mortgage also with KBC?

 

[Brendan Burgess]

What does the form you sign to avail of the fixed rate say?

If it says "I confirm that this is my home and not a buy to let" then don't sign it.

It has not been the practice of the banks to switch people who took out a home loan mortgage to buy to let rates. The contract says that they can do it, but they don't generally do it.

Brendan

 

[Brendan Burgess]

OK, the OP sent me a copy of the letter.

I had the rates in the Mortgage Table wrong but I have corrected them now.

They are offering the ordinary rates available to all existing PPR customers which includes up to 5 years at 4%.

I think you should go online and fix for 5 years at 4%.

Brendan

 

[peemac]

sorely tempted myself to take this - 5 years exactly left on 0.95% tracker and when the ecb does start dropping rates (possibly now pushed out to late 2024) it could be 2026 before they are at 3% and the balance will be negligible, so if ecb went to 2% the difference at that point would be miniscule. Tempting