Hi there,
I have been trying to 'engage' and arrange a long term restructure with my bank! They are reluctant to give me a term extension and have offered IO on Property 2,3&4 for 2-3 years with the caveat that all existing terms and null and void, essentially giving them control and they will want all sold after that time to reduce my overall debt. So I will end up with property 1 only (and additional mortgage to pay if i don't sell above current mortgage amount, and no income to pay for it!) I strongly believe the portfolio can work - with terms extension. Would like to hear what you think?
Property 1.
Loan 550k. Value of property 550k. Interest rate 4.65. Current Mortgage 4573pm (2150 interest). Remaining term 16yrs. Gross rent 4k. Rent after costs allowable 3575.
Property 2
Loan 285k. Value 125-150k. Rate 1.6. Remaining term 22yrs. Current Mortgage 1389 (380 interest). Gross rent 1100. Rent after costs allowable 885.
Property 3
Loan 225k. Value 225+. Rate 4.4. Term remaining 17yrs. Current Mortgage 1720 (825 interest). Gross rent 1000. Rent after costs allowable 800
Property 4
Loan 295k. Value 125k. Rate 4.4. Term ended full amount due. So need to negotiate. (had IO for 5 years) Gross rent 1000. Rent after costs allowable 750. Interest only Mortgage would be 1075 over 25 years. Section property.
If you look at it as a portfolio. I have gross rent of 7100 pm, costs allowable 1100pm, left to pay bank 6k pm (I could inject 500 max). They are in good locations and never empty.
In order to reduce the loan and make it all more workable I have offered the bank 100k in order to negotiate term extensions. (Yes I could use this and pay my full C&I for 2 years but what happens when this is used up? I can no longer afford repayments based on current terms.) If they dont agree to term, then no 100k will be given. Why would I?
I am looking to restructure so that the mortgages are in line with net rent and are sustainable.
I am currently on a fixed payment which was granted a year ago. I am not in arrears yet! and looking to agree a restructure as I will not be able to afford full C&I when it kicks in.
Idea was to extend Property 1&3 to 25 years. This would reduce their mortgage considerably. Then go IO on 4 for a term. And keep 2 as is (as its a tracker). My plan is to sell Property 3 as it has good potential, when it makes sense i.e. the market is rising, I 'hope' that I could sell in a few years and clear loan and pay additional capital off the portfolio (50-100k) - making it all more manageable.
I have a PPR with equity of approx 250k. But this not secured against any loan. So they have no access to it. And I would not plan to allow this.
Any advise thinking most welcome and hopefully this is clearer than first post!
Cheers
I have been trying to 'engage' and arrange a long term restructure with my bank! They are reluctant to give me a term extension and have offered IO on Property 2,3&4 for 2-3 years with the caveat that all existing terms and null and void, essentially giving them control and they will want all sold after that time to reduce my overall debt. So I will end up with property 1 only (and additional mortgage to pay if i don't sell above current mortgage amount, and no income to pay for it!) I strongly believe the portfolio can work - with terms extension. Would like to hear what you think?
Property 1.
Loan 550k. Value of property 550k. Interest rate 4.65. Current Mortgage 4573pm (2150 interest). Remaining term 16yrs. Gross rent 4k. Rent after costs allowable 3575.
Property 2
Loan 285k. Value 125-150k. Rate 1.6. Remaining term 22yrs. Current Mortgage 1389 (380 interest). Gross rent 1100. Rent after costs allowable 885.
Property 3
Loan 225k. Value 225+. Rate 4.4. Term remaining 17yrs. Current Mortgage 1720 (825 interest). Gross rent 1000. Rent after costs allowable 800
Property 4
Loan 295k. Value 125k. Rate 4.4. Term ended full amount due. So need to negotiate. (had IO for 5 years) Gross rent 1000. Rent after costs allowable 750. Interest only Mortgage would be 1075 over 25 years. Section property.
If you look at it as a portfolio. I have gross rent of 7100 pm, costs allowable 1100pm, left to pay bank 6k pm (I could inject 500 max). They are in good locations and never empty.
In order to reduce the loan and make it all more workable I have offered the bank 100k in order to negotiate term extensions. (Yes I could use this and pay my full C&I for 2 years but what happens when this is used up? I can no longer afford repayments based on current terms.) If they dont agree to term, then no 100k will be given. Why would I?
I am looking to restructure so that the mortgages are in line with net rent and are sustainable.
I am currently on a fixed payment which was granted a year ago. I am not in arrears yet! and looking to agree a restructure as I will not be able to afford full C&I when it kicks in.
Idea was to extend Property 1&3 to 25 years. This would reduce their mortgage considerably. Then go IO on 4 for a term. And keep 2 as is (as its a tracker). My plan is to sell Property 3 as it has good potential, when it makes sense i.e. the market is rising, I 'hope' that I could sell in a few years and clear loan and pay additional capital off the portfolio (50-100k) - making it all more manageable.
I have a PPR with equity of approx 250k. But this not secured against any loan. So they have no access to it. And I would not plan to allow this.
Any advise thinking most welcome and hopefully this is clearer than first post!
Cheers
Last edited: