ICS Mortgages coming off interest only.

Yoyoninja

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Hi There,

I have a number of mortgages that are due to come off their interest only period in the coming months with ICS. The properties are in negative equity and I'm pretty well skint, on a good day they wash their face as investments but that's about it.

Has any not any thoughts on what's likely to happen ?
 
Had similar issue in 2007 I think,asked that they extend the period and they weren't having a bar of it.

Have you checked the contract to see if they can actually do it?

Look no harm sending in a letter outlining your position and asking for an extension but don't hold your breath.
 
I'm well aware that the banks won't do anyone any favours, but the reality of the matter is, that if they don't offer me some sort of renegotiation well the properties will have to be sold with a residual debt of almost 500k.

I'm trying to take a practical approach here, I want to avoid at all costs any type of insolvency scenario. I'm just wondering has anyone gone through the same recently, as I'm told policies are changing in the banks all the time.
 
Extend and pretend still seems to be the main response of the banks.

Two important questions are which banks are involved as some are more aggressive than others, and are the interest rates on the loans profitable for the banks.

What is your game plan. After all the worst thing that might happen is that the bank takes IO for another 2 years and the properties appreciate in value and then the bank sells at a small loss and you are left with nothing or a small debt
 
In this case the bank is ICS, loans are 1% trackers. I would be hoping an extension to the IO period or a split mortgage in line with what can be afforded, I haven't heard of anyone who has been able to avail of a split mortgage and what is the criteria for being able to do so.
 
I don't see why the bank would offer you split mortgages. If you are servicing the mortgages on IO and you are on a 1% tracker I think they'll assume that you can service the interest & capital repayment. And if you can't & the properties are deep in negative equity are they really an investment? You'll just end up in a holding pattern at best for a long time to come.
 
Yoyoninja;
K500 is a huge residual debt; hence Bank will be slow to want to take that hit.
I would think ICS will huff&puff and reluctantly accept enough interest that means debt does not keep rising and await the time property =value of loans.
It may even be in their interest to do a (short) term split.
I see no hard and fast rules.
As Creemeg says a bit of {extend & pretend} happens.

Do not forget that with aK500 potential hit ,ICS are not in a strong positon

If ICS (go) for you , And not knowing your full circumstances , since you have a K500 hole ,would insolvency be an option.

On balance though I expect ICS to be pragmatic.
 
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