Buy to let mortgage review after 12 years

suicra05

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216
Received a letter from PTSB saying they want to review my Buy to let mortgage and I have 10 days to reply.
It is a tracker .80%, taken out July 2007, interest only for 382,000. The property at present is worth circa 360,000 and is producing a rental income. I have never missed a mortgage payment.
They have given me 3 options: change to capital and interest mortgage, move to part capital and interest or Interest only until next review date.
I want to stay interest only at all costs. I have to produce my financial records to prove that I have a plan to pay off mortgage at final date which is in 2032. Ultimate plan would be I could sell property in 2032 and repay the mortgage. Will they accept this plan? Can they make me change to another type of mortgage? Can they increase my present tracker rate? Any assistance would be appreciated.
 

anntionette

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sorry cant help but wow what an amazing deal you got there - a 25 year interest only tracker buy to let mortgage! I would try and keep it of course and with the income surplus tried to buy another and rent that out but selling to pay it off to pay the debt if thats all you have - thats a scary risk. who knows id probably go for that plan if i was let away with it. who wouldnt?

Ultimate plan would be I could sell property in 2032 and repay the mortgage. Will they accept this plan?
No. but they will have a giggle.
 

Brendan Burgess

Founder
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39,145
Hi Suicra

What does your contact say?

If it says interest only for the full term, then they can't switch you to capital and interest.

However, it probably says interest only for 5 years and then subject to review. In which case, take the elcato option, Just tick box 3.

When they come back to you, show them the valuation of the property and tell them you will sell it on maturity.

Brendan
 

Bronte

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This is a bit of a risky strategy given the property is still worth less than the mortgage. Though the OP has 25 years of rental taxes and the interest payments. Risky as in what if at the crunch moment of selling we’re in a property crash.
 
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cremeegg

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3,125
[QUOTE="suicra05, post: 1630170,
. I have to produce my financial records
[/QUOTE]


whosays this.

Is it in your contract or did some clerk in PTSB just decide they want you to.

I would write back querying this point. Unless you are contractually obliged to provide information which I very much doubt then info do not answer their questions
 

Luternau

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I am surprised they are only getting to you now. A lot of PTSB reviews of BTL trackers happened in 2010/2011. I doubt you have a tracker for the full term, but if you do, then you are OK.

Most likely they are looking to see that your plan is to repay this and what your current means are.
 

Susie2017

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186
Surprised how PTSB can do this. If it's interest only for the term then surely it's not their concern until near that term I.e 2032. I know an individual with similiar interest only arrangements on several properties with Danske. They have had no such contact even though their term expires within the next 5 years and are in negative equity.
 

Bronte

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I would write back querying this point. Unless you are contractually obliged to provide information which I very much doubt then info do not answer their questions
Ulster bank review me every year. I just tell them by email the details and they have a meeting and on you go. Never had to supply anything. Think I had to tell them I was tax compliant etc. It was a very simple thing though.
 

RedOnion

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Ulster bank review me every year. I just tell them by email the details and they have a meeting and on you go. Never had to supply anything. Think I had to tell them I was tax compliant etc. It was a very simple thing though.
If I recall yours is slightly different. Because you have a business loan they are treating you as an SME - they're obliged under CBI rules to conduct an annual review.
 

Bronte

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If I recall yours is slightly different. Because you have a business loan they are treating you as an SME - they're obliged under CBI rules to conduct an annual review.
Never knew that. The extraordinary thing is that I fixed the loan a couple of years ago and I didn't realise how complicated it would be. Certainly in comparison with how I first got the initial loan.

Bet anything the OP has some clause in his contract about 'review'. And the bank are relying on that to seek information.
 

cremeegg

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Bet anything the OP has some clause in his contract about 'review'. And the bank are relying on that to seek information.
Reluctant though I would be to bet against you again after my last trouncing, :). I suspect that banks are quite happy to ask for information they have no right to, after all it is hardly illegal for them to ask. If a customer provides info on foot of a polite request, well.
 

RedOnion

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It's clause 7 of a standard PTSB BTL contract. I'm almost certain it's been discussed around here somewhere previously:

"Clause 7: “Permanent tsb reserves the right to review the deferral of the repayment of principal at any time during the term of the loan, including the first three years of the term and may require the applicant to cease the interest-only repayment and require the repayment of principal and interest and the applicant will immediately arrange to pay the revised monthly repayment comprising the repayment of principal and interest calculated over the remaining term so that the principal and interest will be discharged within the existing term of the loan."
 

Bronte

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Reluctant though I would be to bet against you again after my last trouncing, :). I suspect that banks are quite happy to ask for information they have no right to, after all it is hardly illegal for them to ask. If a customer provides info on foot of a polite request, well.
Well in this case it might be in both the bank's and the OP's best interest to find out if she has other options. Which clearly the bank seem to be offering her. But as the OP does not tell us what the ultimate aim of where this is going it is moot.
 

suicra05

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216
Update on my post. I contacted PTSB by phone, they were looking to see if I could repay at end of mortgage. Filled out mortgage review form, included all income, proof of sufficient savings to cover any potential loss on property, proof of 2 sales of similar property from property register. Sent it all off. They came back to me within 2 days of posting by telephone. Gave me the all clear, told me there now will be 2 year reviews for remaining of mortgage. All worked out well and they did not touch my tracker mortgage or the rate.
Happy days! :)
 

Deaneo

New Member
Messages
6
Hi,
I recently received a PTSB Review letter with 3 options - (a) Switch to Capitol & Interest (b) Part pay down Capitol or (c) Stay on Interest only.
They are requesting some serious financial details - Salary, Savings, Sell-off of other property as options to clear down the mortgage(s). All to be returned within 10 working days on penalty of an automatic switch to Capitol & Interest if I don't.
How can I check or where can I go to, to confirm if PTSB can switch my mortgage to Capitol & Interest.
Thanks...
 
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George12

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44
Discussed elsewhere under mortgage arrears and also property investment. They would appear to generally have a right to enforce capital repayments after a specified period. They may not do this for example if you show the value of the property exceeds the mortgage or if you have savings to cover any negative equity. There does not appear to be many concluded cases yet. In terms of checking you would need to review your loan offer, solicitor may have it if you don’t.
 

Deaneo

New Member
Messages
6
Hi George...
Thanks - I have all details of the Loan offer & Special Ts & Cs but who can examine the contents & advise given the past debacle on Trackers in general since 2011. In particular the Letter of Approval contains "The loan is an interest only loan for the duration of the term and the capital will be paid in full at the end of the term". Also an Amortisation Table shows a final payment in last year.
 

RedOnion

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3,817
Is it a buy to let?

Does clause 7 exist?
"Clause 7: “Permanent tsb reserves the right to review the deferral of the repayment of principal at any time during the term of the loan, including the first three years of the term and may require the applicant to cease the interest-only repayment and require the repayment of principal and interest and the applicant will immediately arrange to pay the revised monthly repayment comprising the repayment of principal and interest calculated over the remaining term so that the principal and interest will be discharged within the existing term of the loan."
 
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