BANK have reduced repayments on BTL

G

greeneman

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Bank have reduced the repayments to match the income from my two BTLs in UK. New amended arrangement to last 5 years. Interest first then the balance comes off the capital. But, they seem to want the term to stay the same. So I will be facing a massive repayment increase in the last 5 years. BTLs are in UK. Practically worthless. I know they will never sell as they are part of large blocks. Good occupancy though.
I am suspicious that bank are so obviously "kicking the can down the road". My situation will have improved in five years as my main residence will be paid for.
What do I need to watch for ?
 
You need to watch out that they switch you back to full capital and interest in 5 years, that you default on that, they call in the loans, and eventually put a judgement mortgage on our home.

If your home mortgage is paid off in 5 years, will that spare money be enough to pay for the BTL's.

Can you pay any capital at all off the BTL's. How about you post up full figures to get a half decent chance of good advice.
 
Thanks Bronte

Two small BTLs bring in combined 7500 net rent per annum. On a yield basis I think this makes them worth 75000. Loans are 145000. Should be down to 130000 in five years time. But by then only 7 years left to repay. I will need an extra 1200 per month to pay the loan. My main residence mortgage saving will only be 320. And I have a lot of other commitments. Mainly college for children.
Even if I could sell them in five years for 75K I would be left trying to pay 55000.
Looks like I will be paying forever for this and the next generation suffer.

I guess I must pay for my bad investments.
 
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