Hello,
I'm having repayment issues on three properties we own, any advice much appreciated.
Outline:
1. I have 2 rental properties with PTSB on interest only, they "wash their own faces" so to speak - Thats good!
2. My PPR is jointly owned with my wife, the mortgage is huge at 450k on variable rate (circa 2700E pm), I'm currently on interest only since we purchased it 6 years ago, this is totally unsustainable, we cannot afford the full capital and interest repayment. Of late we are now struggling to pay off the interest only part of the PPR mortgage. I sat down with the mortgage provider (Ulster Bank) and applied for help via the MARP process, they replied by stating they will leave us on Interest only for a further 12 months, I had sought to pay 1000e per month for 1-2 years to help us get back on track. This was refused.
I do realize that if I default on the investment property mortgages, the banks will move to sell the property at a much reduced rate (in due course) and I pay the balance outstanding. I cannot afford this and don't want to risk it.
On the other hand, what would happen If I wrote to my bank and amended the DD mandate to only pay 1000e per month towards my PPR mortgage?, after all this is all I can afford.
What would be the consequences down the line?, as its our PPR wouldn't we be protected so long as I pay what we afford?
Any advice much appreciated.
Dave
I'm having repayment issues on three properties we own, any advice much appreciated.
Outline:
1. I have 2 rental properties with PTSB on interest only, they "wash their own faces" so to speak - Thats good!
2. My PPR is jointly owned with my wife, the mortgage is huge at 450k on variable rate (circa 2700E pm), I'm currently on interest only since we purchased it 6 years ago, this is totally unsustainable, we cannot afford the full capital and interest repayment. Of late we are now struggling to pay off the interest only part of the PPR mortgage. I sat down with the mortgage provider (Ulster Bank) and applied for help via the MARP process, they replied by stating they will leave us on Interest only for a further 12 months, I had sought to pay 1000e per month for 1-2 years to help us get back on track. This was refused.
I do realize that if I default on the investment property mortgages, the banks will move to sell the property at a much reduced rate (in due course) and I pay the balance outstanding. I cannot afford this and don't want to risk it.
On the other hand, what would happen If I wrote to my bank and amended the DD mandate to only pay 1000e per month towards my PPR mortgage?, after all this is all I can afford.
What would be the consequences down the line?, as its our PPR wouldn't we be protected so long as I pay what we afford?
Any advice much appreciated.
Dave