Can we force them to push the loan term out to 40 years and keep our tracker?
what does your mortgage agreement say?
Term 25 years, interest only for 5, reverting to capital and interest after 5.
Don't think you can force the bank to do anything, outside the terms of the agreement.
Solicitors letters are like confetti and without hard substance normally irritate.We have a Buy to Let mortgage with ICS which has been on interest only for the last 5 years. We're on a tracker rate. They're now forcing our hand and saying to continue with any forbearance, we have to give up our tracker rate or start making full capital repayments which are nearly double what we're paying. They're offering to push the loan term out to 40 years to faciliate smaller repayments but they say we'd have to go on to a variable rate. Can we force them to push the loan term out to 40 years and keep our tracker? Is it worth getting a solicitor's letter to them?
Any advice gratefully received.
selling isn't an option.
However what's not clear is how long we'd have that reduced variable rate.
Plus, the rent we're receiving will not go any lower and will go up. We have good long term tenants.
We're also paying approx 1700 a month to the Revenue Commissioners in tax on the rental income and correct me if I'm wrong, but if it's clear we're making a big loss, the tax bill won't be as much?
Thanks again for all the advice.
The tax bill is the amount on the rental income we receive after allowable interest, repairs, insurance etc..
We can just about afford to pay the 1200 but it would be a real stretch.
Summary
Write back declining their offer. Ask for the interest-only period to be extended.
If they refuse, pay the interest and as much as you can. Show that you are trying to pay this loan.
Wait until you see what they do next. If they charge you additional interest, you can live with that.
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