Hi,
My wife and I have a rental property that we purchased in 2007 as our first home. We lived in it for 10 years and in 2017 we bought a second property to accommodate our growing family, moved into that and rented out the first. The mortgage on our rental property is a tracker + 1.1% with AIB, and is currently at 2.35%. The mortgage on our family home is with UB and on a fixed rate for another 4 years at 2.1%. The rental side of things has been a positive experience so far, we have the same tenant from the start and it is working well. We have amended the rent once (this year) during the tenancy however the gap between the rent and the mortgage payments is reducing and I am considering contacting AIB to see if we can move to a longer term fixed rate and give up the tracker as future ECB increases will hurt more. We are agreed that if we got a rate around what is it today (2.35%) we would take it as the uncertainty (and increased payments) is something we want to avoid if we can. We have 17/18 years left on both mortgages so we still have a way to go.
Could I ask your advice on the above and what I should expect from engaging with the bank? We did not inform the lender of the change in circumstances at the time so I imagine the terms have changed now that the property is rented out so I'm not sure what way it will play out.
Jim
My wife and I have a rental property that we purchased in 2007 as our first home. We lived in it for 10 years and in 2017 we bought a second property to accommodate our growing family, moved into that and rented out the first. The mortgage on our rental property is a tracker + 1.1% with AIB, and is currently at 2.35%. The mortgage on our family home is with UB and on a fixed rate for another 4 years at 2.1%. The rental side of things has been a positive experience so far, we have the same tenant from the start and it is working well. We have amended the rent once (this year) during the tenancy however the gap between the rent and the mortgage payments is reducing and I am considering contacting AIB to see if we can move to a longer term fixed rate and give up the tracker as future ECB increases will hurt more. We are agreed that if we got a rate around what is it today (2.35%) we would take it as the uncertainty (and increased payments) is something we want to avoid if we can. We have 17/18 years left on both mortgages so we still have a way to go.
Could I ask your advice on the above and what I should expect from engaging with the bank? We did not inform the lender of the change in circumstances at the time so I imagine the terms have changed now that the property is rented out so I'm not sure what way it will play out.
Jim