KBC BTL mortage - reaching tipping point

Hi,

I've been on here before but need to sort something out with this soon. Here's my details:


Income details: Wife gets 2540 euro after tax. My JSB ended in November and was not eligible for JSA due to her salary. Other income is 390 euro Childrens Allowance and 700 rent from rental propery.



2 adult family
Do you need a car for work or do you use public transport? One car which is needed for work, we have a second one which is essential as we live in a rural area but it's been broken down since pre-Christmas.
Number of children 0- 2 years old: 1
Number of 12 - 18 years old: 2
Monthly childcare costs: 65 euro per day if I have a job interview or something like that.

Home loan (FAMILY HOME)
Lender: bank of Scotland
Amount outstanding: 290,000
Value of home: No idea. Maybe 200,000
Interest rate: Not sure but is pretty low
Monthly repayment - 990 euro approx
Amount in arrears - a few hundred arrears. We've gone on reduced payments of 380 euro for six months

KBC RENTAL Property:
Oustanding: 248,000
Arrears: 12,800
House worth: 135,000
Monthly interest only payments: 903 euro
Rental income: 700 euro

As my JSB ended abruptly in November, we've (probably ill-advisedly) been using any rental income to feed kids and pay for day to day expenses. Therefore, we've not made any payments at all to KBC since November. We are in a position to restart paying interest only of 903 euro from this month.

They have said they'll appoint a receiver to collect rent unless we do so so we really have no choice. We'll manage somehow.

However, they seem to offer no solution other than interest only, which we still have to add 203 euro per month to.

I've met and followed up with a PIP but they've been of no use really and keep putting me off.

How should I approach KBC? BOS were very helpful and reduced our Family Home payments to 380 euro per month and the balance per month will not be added to mortgage at end. Is this a split mortgage? Has anyone any experience of KBC doing similar?

I don't think kbc do split mortgages on investment properties but you could check this out. If you only pay the €700 rental income the balance of €203 goes into arrears unless you enter into an agreement with them to have it put back onto the mortgage. Contact their collections Dept and arrange a meeting. I'm speaking from experience and they're ok to deal with.

Income 2540 + 390 = 2930

Mortgage 990 + Investment 203 = 1193, leaving 1737 to live on as a family of 5. What are you spending the 1737 on?

The investment is costing more than 203, but no tax liability probably. Are you all up to date with PRTB, NPR etc?

What is it you want?

Looks to me that the worst scenario would be a rent receiver, you've no control then, and you'd be liable for all costs and taxes out of your own income while the bank takes the rent. Currently you can pay those costs out of rent. And you can be sure that having a rent receiver will only lead to more costs. He has to be paid too, and your plumber might costs 100 Euro but his could cost 300 Euro.

How about negotiating an orderely sale of the property. You're not even paying off capital, in some years time your loan to value might be even and then the bank are going to sell it anyway, so you'd be better off getting rid of it right now.

You say the PIP was useless, did you pay him, how much, what was the service and advice given?