Process to declare RIP Property as a PPR property

[MikeInTipp]

Hi folks,

How can this be done?

A) The RIP property is one we'd like to live in eventually - but not now.
B) It is coming to the end of the interest only period and i'll start having to pay int. and capital over the remaining term.
C) The mortgage with PTSB states it's an RIP.

How do i go about declaring this as a PPR?
What's your guess that PTSB will use this as an excuse to bump up the interest rate?

All advice appreciated.

Cheers,

Mikey

 

[Protocol]

Hi folks,

How can this be done?

A) The RIP property is one we'd like to live in eventually - but not now.
B) It is coming to the end of the interest only period and i'll start having to pay int. and capital over the remaining term.
C) The mortgage with PTSB states it's an RIP.

How do i go about declaring this as a PPR?
What's your guess that PTSB will use this as an excuse to bump up the interest rate?

You move into the house. Then it becomes your PPR.

Assuming it is the only house you own, you then stop paying the NPPR tax.

You tell the house insurer that it's now your PPR - your premium might fall??

You stop paying income tax on the net rental income.

As PPR mortgage rates have typically been lower than investment rates, I don't see why the bank would increase the rate???

 

[Bronte]

RIP - Residential Investment Property. PPR - Principal private residence.

Mike have you checked the interest rates? In general yes the rates are higher. It depends what it says on your mortgage documentation what rate will apply. For example the variable rate for investment properties may be the same as that for PPR's.