Tough one.
The Ombudsman will have to decide if you would have sold the property had you been on a tracker rate.
I think you need to show the p&l account
| SVR | Tracker |
Rental income | €15,000 | €15,000 |
Mortgage interest | €20,000 | €5,000 |
(loss)profit | (€5,000) | €10,000 |
Tax | | €5,000 |
Profit after tax | (€5,000) | €5,000 |
Make sure to steer the argument away from the repayments. Because, even low interest rate trackers are usually cash flow negative.
Another good reason for holding on to such an investment property is that any price increase up to the price you paid would be exempt from CGT.
Don't make false or exaggerated claims. For example, if living in that house was a reasonable option, then by all means raise it.
Were you in arrears?
Were you pressurised to sell? Or did you just make that choice?
I have seen a similar case where the person sold his investment property and bought a new house with his girlfriend. It seemed fairly clear to me that, tracker or not, he would have had to sell the house anyway to get a mortgage for the new home. However, that doesn't seem to apply in your case.
Brendan