renting family home

R

R196

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if you rent your house do you need to tell your mortgage provider?if so, will this change the rate? on a tracker!
 
You only have to tell the mortgage provider if your loan documentation says you must.

Telling the insurance and registering with the PRTB are extremely important as the previous poster stated plus the new NPPR. You also need to learn about how to be a landlord and how to work on your rental income for tax purposes. Look up AAM investment section and revenue.ie to give you an idea of what to do.

Depending on when you purchased there may be a stamp duty requirement.
 
Bronte said:
You only have to tell the mortgage provider if your loan documentation says you must.

Telling the insurance and registering with the PRTB are extremely important as the previous poster stated plus the new NPPR. You also need to learn about how to be a landlord and how to work on your rental income for tax purposes. Look up AAM investment section and revenue.ie to give you an idea of what to do.

Depending on when you purchased there may be a stamp duty requirement.
Click to expand...

You should also review whether or not there is a potential CGT liability if you rent the home for a number of years (all assuming you are not in negative equity of course and likely to be there for some time). Family home sales are CGT exempt
 
thank you. we are in negative equity. we must rent hosue as we cannot sell same. we will rent another house closer to work until mortgage reaches value of house
 
Be very careful with contacting the bank if you are on a tracker. Any excuse and they will tell you you need a different type of mortgage and it for sure wont be a tracker.

You could see your rate go from below 2 % to above 3%.

The banks are losing money hand over fist on almost all their trackers as they have to pay more on the money markets than they are getting in interest.

If you have your insurance informed and you register with the PTRB you should be ok.
 
Remember you will also lose your TRS relief when you rent it out and you will have to file income tax returns each year on the rental income. It's worth doing your sums before you make the move to ensure it is the best move- between income tax, potential change in mortgage rate, potential stamp dut clawback,TRS relief loss, NPPR levy, maintenance costs, PRTB registration fee and so on- it's not to be taken lightly.

Neither is quality of life, of course.
 
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