Hello,
Can anybody with financial and legal experience provide advice on the following scenario I'm in?
I live in Dublin
I'm 38 married with 2 kids under 5, my ppr property is with Ulster Bank on an interest only basis since we purchased in July 2007, the banks wrote in May of this year stating we will be taken off interest only payments and onto full repayments. The mortgage taken out was 450k and still is 450k. I have gone through MARP yesterday, only to be told the income Vs outgoings "on paper" stands at 327€ + .This does not reflect the true situation on the ground, I have historical debt from past lettings where tenants done a runner owing 3500€ plus other out of the blue expenses like car repairs etc etc. We cannot afford the full repayment and in receipt of letters from U Bank stating the capital shortfall since July 2012. All I was seeking was to be retained on interest only for another year. (I know its a false economy as its leading nowhere, I'm hoping when the markets improve slightly I will off load some, or all properties)
Rental Properties
I also have 2 rental properties which are paying for themselves, both on interest only. one property is on a tracker which I want to protect by all means, the other property is on a standard variable, where the rent doesn't cover the mortgage.
I must default on the variable mortgage to use this rent to supplement the PPR at all costs?, the problem with this is the bank will sell it and pursue me for the shortfall plus interest.
However, if I continue to ignore the banks request to pay the capital and interest on my PPR I may loose that property.
Any advice?
Regards
David
both on interest only.
one property is on a tracker which I want to protect by all means,
the other property is on a standard variable, David
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