"Rich" guys wants switch to Interest Only mortgage

  • Thread starter MattNavanMan
  • Start date
Status
Not open for further replies.
M

MattNavanMan

Guest
OK, so I need some help. I took out a mortgage with EBS two years ago for an apartment which I live in. I have no problem meeting the mortgage payments at present.

I want to switch this mortgage to Interest Only but cannot think of an angle to approach the building society with to get them to change it as I can easily afford the mortgage!

My rationale is that it is likely this mortgage is not going to run it's course in any event either due to job loss (on the cards in the medium term) or persistent negative equity (which might see me take an exit strategy from Ireland). In either case I would hand the keys back to the bank so there is no benefit to me in paying anything more than I have to. Besides the building society and I entered into a joint contract and as I see it today I am taking too much of the risk.

Any advice out there?
 
So basically what you are saying is that you want advice on how to avoid paying your debt?

You can't "hand the keys back to the bank" - this isn't the US. There isn't any such exit strategy. The debt follows you. If the bank were to sell the property they would still be fully entitled to chase you for the money you owe them if they sold it for less than the outstanding mortgage (which if it is in negative equity - they will).

I think you need to learn some basic facts. You borrowed money to buy a property. You secured that loan on the property but you are still the beneficial owner of the property - the bank does not own it, the bank did not sell it to you, there is no "handing back". You owe them money. That the property is in negative equity is your problem. You lose your job it is your problem. The debt stands and it stands with you - it follows you. If you want to go interest only you still owe the entirety of the principle and you will only be paying more for the privilege of borrowing the money. It is the most nonsensical approach you could conceive of. The best way is in fact to OVERPAY the capital not underpay it. That way you pay less interest overall, you get out of negative equity quicker and you pay your debt off faster. <snip>
 
Last edited by a moderator:
This previous thread may be of interest.

Can I remind posters of the posting guidelines?
Please be civil - avoid causing offence
so-crates, I have edited your post to remove personal comments which breached same.

MattNavanMan said:
...the building society and I entered into a joint contract and as I see it today I am taking too much of the risk.

Any advice out there?
Click to expand...
Change your way of seeing things?
 
so-crates said:
You can't "hand the keys back to the bank" - this isn't the US. There isn't any such exit strategy.
Click to expand...

The exit strategy would be permanent (read greater than 12 years) which is to say I most certainly can "hand the keys" to whomever I want and it becomes the bank's problem not mine. The debt doesn't follow me anywhere, their security is the apartment and they can have it. Yes, there would be a judgement but given the amount of those there is going to be out there the banks will let them lapse at the end of their initial period.

I won't comment on the remainder of your post as it is simply wrong in light of your initial error.
 
Starting to think this is an IBOA forum board. C'mon guys, the banks are getting NAMA, we've got to look after ourselves...
 
MattNavanMan said:
The exit strategy would be permanent (read greater than 12 years) which is to say I most certainly can "hand the keys" to whomever I want and it becomes the bank's problem not mine. The debt doesn't follow me anywhere,
Click to expand...

It does.

Have some pride, have some honour.

You borrowed, so pay back.

Don't run away, be a real man, face up to your responsibilities, and your debts, and repay the savers of Ireland who have financed your borrowing.

Don't run away, like a petty person.
 
MattNavanMan said:
I have no problem meeting the mortgage payments at present.

Good, so keep repaying it, like everybody else.

I want to switch this mortgage to Interest Only but cannot think of an angle to approach the building society with to get them to change it as I can easily afford the mortgage!

That's because there is no "angle", you must repay interest + capital.

Besides the building society and I entered into a joint contract and as I see it today I am taking too much of the risk.
Click to expand...

The contract means you owe the EBS savers back their money.
 
The chance of switching to an Interest only facility are pretty remote IMO.You might have a chance if you had say 40% of your mortgage cleared already. Otherwise you are either stuck or start packing.
 
Status
Not open for further replies.
Back
Top