renting my home - banks likely response

Hi there,

change in circumstances means I'm moving from Dublin to rent in South west. I cant afford to sell up so renting out my home in Dublin is my best option. I have one concern, i know i'm supposed to notify my bank that the status of house is to change from home to rented property, Now thankfully I have a tracker mortgage , currently paying 2 per cent interst. My query is if i notify bank,

A: will they care one way or the other, could they refuse under mortgage terms to allow me rent it out

B: could they attempt to move me from tracker to say variable because the nature of the property is changing

C: Finally what are the implications if I dont notify the bank and just go ahead and let it out -

Naturally i intemt to register as a landlord etc etc, in other words all above board

many thanks

hi moss

im not sure what possition the bank will take . am i right in thinking that you only have the one property. i think they may take a different look to renting to help pay the mortgage then you trying to claim a lower rate on a house that inst your private home .

househunter! said:

... i think they may take a different look to renting to help pay the mortgage then you trying to claim a lower rate on a house that inst your private home .

Click to expand...

Once it is rented out with no owner in occupation, it is no longer a "private home", it's a rented out investment property.

I only have the one property but I relaise it will be classed as an investment property, i suppose my questio really is can the bank use this change in status to force me from a tracker to say variable and if this were the case am i better off not notifying them of change

Without knowing for sure - I would say that they could look to move you off the tracker and on to an investment property mortgage. 2% is a low rate for an investment property mortgage.
Does your bank offer a dedicated investment property mortgage?
Check the mortgage contract and see if it mentions anything about this type of situation.

Does your mortgage agreement specifically say that you must notify them if you change it to an investment property? If not then you do not have to notify the bank.

thanks all, ill reas up agreement tonight