Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Mortgage rate for libing in vs renting out?

  • 21-06-2018 2:22pm
    #1
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,781 Mod ✭✭✭✭


    I have a very small property I bought years ago and rented out. I'm on a current rate of 4.3% and I asked if I can get any better - they said no because I dont live there. I asked what could I get if I did live in it, and they said 2.6%. Wow, thats a massive difference. The bank I'm with for my current account are looking for my business and I'm going to see what they can do for me. Why is there such a big difference and cant I just get a normal mortgage rate?


Comments

  • #2
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    Default risk. If you have two properties and two mortgages - one is your home and the other is an investment / rental property, and you run into financial difficulty so that you can only pay one mortgage, which one will you pay? For most people, they will work harder to pay the mortgage for their own home to keep a roof over their heads. So an investment property will always be seen as a higher risk than an owner-occupied home.


Advertisement