Inform mortgage of letting?

mrsod said:
What is the worst the banks can do if they found out?
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Assuming the bank are entitled to charge a higher interest rate if your home becomes an investment property;

Could they charge the higher interest rate retrospectively if they discover at some future time that this happened in 2010.

With investment rates typically 1% higher than standard rates, this could mean an additional €1K being added to your mortgage for each €100K owed, for each year they did not know about the change.

Whether realistically this would ever happen or not, who knows, possibly as you say they are happy to be getting payments at the PPR rate today, but they might not always think like this.

Personally I would be aware of this as a possibility and continue to keep my mouth shut.
 
Mrsod have you tried the An Post thing of forwarding on your post? Think that's what we'd do... Well not sure what the banks would do, my husband thinks the same as you that they'd just be glad we're still paying the mortgage, I'm just a worrier :eek: Thanks for the info re the NPPR...

Twoforone, yeah that's what I'm worried about...

M
 
Similar problem

mrsod said:
What is the worst the banks can do if they found out? Im with Bank of Scotland Ireland, so I am assuming they are just grateful that Im repaying the loan every month. The only problem is trying to get the postal address changed withoug creating suspicion. Tenants dont seem to re direct my post.

I have been reading all of your replies. They have been informative but for me the basic question still hasnt been answered...maybe no one knows the answer. I have looked everywhere to no avail. I have a tracker and my agreement states its for an owner occupier. I have to move with my job and want to let the house to help pay the mortgage. I also want to have it all above board by paying tax etc. My big worry is if the bank find out I am letting the property that they might try take away my tracker... It could be as you say that they bank would be happy just that the mortgage is being paid ....but how can I find out for sure?
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Can you assume that the banks would charge more if the property becomes a rental one? Is there a precedent?
 
walshie50,

Looks clear to me, if you are not an owner occupier, then you are not entitled to your tracker rate.

Whether you choose to tell them, or will they find out is another arguement.
 
mrsod said:
When I changed insurance, them company posted something to me with the policy, and mentioned something about sending it to bank, I have yet to do that!
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I would look into this issue in detail before you send that letter. They could find out about your change of circumstances if you do this.
 
I have recently rented out my house, and I'll be saying nowt to the bank.

I will pay the PTRB and NPPR fees of course, and all my taxes, but I'll be leaving it up to the bank to find out themselves. If they do, fair play to them.
 
walshie50 said:
Can you assume that the banks would charge more if the property becomes a rental one? Is there a precedent?
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Yes they charge more, just look up their websites. During the Tiger they in general did not as they were too busy dishing out money. Banks are in dire need of income and investment rates are one way of getting it.
 
Hi RMCF, You mentioned you recently rented out your house but have not told bank. But do all your bank correspondance go to the rented house or have you changed address? Or do you just trust tenants to forward post on?
 
mrsod said:
Hi RMCF, You mentioned you recently rented out your house but have not told bank. But do all your bank correspondance go to the rented house or have you changed address? Or do you just trust tenants to forward post on?
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To be honest I changed all my correspondence to my new address, with the exception of anything related to my original mortgage at that 1st address.

I do trust my new tenants to keep any literature that they send out, which tends to be very little to be honest, usually the odd statement, which often is only yearly.

I just told them that I may still get some mail to the old address and could they gather it up and text me when they want me to collect it. Hopefully this should stop them finding out about the property now being rented.
 
A relative of mine recently had to move for work reasons, but didnt want to sell her PPR as market bad, not sure if new job/location will work out etc. She's renting at her new location and renting out her own house.

She's on a tracker with one of the major banks. Her contract only had references to the effect that the loan was for a private residence belonging to her. It was silent on the issue of renting or owner occupation - so she took it that it is ok to rent out the house as it conforms with the private residence condition.
 
inform mortgage of letting

There seems to be a lot of us in the same boat... I got a friend who works in business to ask a bank manager for advice on this. The answer was that the contract was binding.. I understand from questioning the friend this means that the tracker contract is binding and that they cannot change that.... still I think from reading all the advice given here that saying nothing to the mortgage provider is the safest thing. I will get the tenants to forward any post from the bank .. it should be just once a year ...and be careful of the wording on any insurance cover before forwarding it. I would be happier to know everything was above board but I really cant risk losing the tracker.. at least this way I can make my repayments. Without the tracker rate its doubtful I would be able to make repayments especially as the rates are due to rise.
Thanks to all for the helpful advice. Isnt it awful to be put in this position!
 
When I insured the house for landlord insurance they sent me my policy and they monetioned something about sending something to the bank. Do the bank need copy of insurance policy to justify pay out in the event of a fire (touching wood as I type) . The insurance form mentions house is let out.
 
Bronte said:
In 5 or 10 years time if the banks discover that you had become a landlord nobody knows what they will do or what rights they will have.
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For those who are thinking of sitting it out with their fingers crossed, and hope the bank doesnt notice, I wonder is the Statute of Limitations relevant here for a Breach of Contract, the limit for which is 6 years?

Likewise, if Stamp Duty should have been repaid if property rented/sold within the clawback period, but wasnt, would the St. of Lim of 10 years be relevant for tax evasion?
 
For those of you who state your just not going to tell the bank, please remember that all rental properties registered with the PRTB are listed online here

All is takes is a bank official to view the PRTB website and check which rental properties are still on trackers
https://prtb.ie/public_registrations.aspx
 
easylife said:
Likewise, if Stamp Duty should have been repaid if property rented/sold within the clawback period, but wasnt, would the St. of Lim of 10 years be relevant for tax evasion?
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There is no statute of limitations for taxes. So now you've racked up plenty of penalties and interest. Two choices, ignore or deal with it.
 
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