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Existing Private Dwelling question

  • 29-09-2017 2:27pm
    #1
    shnethb
    Registered Users, Registered Users 2 Posts: 107 ✭✭


    Hi. We have a mortgage with an Irish bank. The mortgage is 10 years old. never missed a payment. House is in neg equity but is getting closer to evens. When we bought the house we were a couple. Now there are 4 of us. The house became too small so we decided to rent it out and rent another larger house. I have yet to tell the bank we have moved.

    My question is. The mortgage we have, is this still a Existing Private Dwelling Home (PDH) since it is the only mortgage we have.


Comments

  • #2
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You were granted the mortgage on your PDH so as far as the bank is concerned nothing has changed. If you decide to trade up, sell this property and apply for a new mortgage, you will need a 20% deposit.


  • #3
    shnethb
    Registered Users, Registered Users 2 Posts: 107 ✭✭shnethb


    Trish56 wrote: »
    You were granted the mortgage on your PDH so as far as the bank is concerned nothing has changed. If you decide to trade up, sell this property and apply for a new mortgage, you will need a 20% deposit.

    Many thanks Trish56 for your reply. The reason I ask is that our current provider is offering new deals on existing mortgages but it only applies to existing customers with PDH mortgages. It seems like a good deal and would save me a couple of hundred per year but just not sure if it applies to me


  • #4
    Geuze
    Registered Users, Registered Users 2 Posts: 14,033 ✭✭✭✭Geuze


    Yes, it does apply to you.

    See the best rates here:

    https://www.askaboutmoney.com/forums/mortgages-and-buying-and-selling-homes.2/


  • #5
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Just be careful if you decide to fix in for a few years as if you decide to sell in the future you will have to pay a penalty if you break the fixed term. You also need to take into consideration if you were applying for a new mortgage and retain the existing as a rental property how that would impact on your mortgage application. Lenders will stress test your existing rate by approx. 2% and will only take a % of your rental income.
    shnethb wrote: »
    Many thanks Trish56 for your reply. The reason I ask is that our current provider is offering new deals on existing mortgages but it only applies to existing customers with PDH mortgages. It seems like a good deal and would save me a couple of hundred per year but just not sure if it applies to me


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