Can lender of invest. property in negative equity have any say in sale of family home

S

ski

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Hi
We have a property currently rented and paying the mortgage on it (supplementing it ourselves with no issues to date) the lender on that property is PTSB, we purchased for 385,000 5 years ago and I would estimate it is currently worth approx 250,000 - our outstanding debt on it is approx 100,000. We are considering selling our family home and we should make approx 60,000 on the sale, our lender in this instance is ICS.
Do we have any obligation to inform PTSB that we are selling our other property - is there any chance they could look for us to contribute to our debt on the investment property or are they two entirely separate issues?
Many thanks
 
Seeing as they are different lenders I doubt any issue will arrise-you are paying your investment morggage and even though its worth les than you paid for it, you have equity. Well done on that front.
Are you aware of any cross securitisation between the two mortgages? Check the documents of the most recent mortgage to see if you have given the other bank a lien on the other property.
 
They are entirely separate, unless at the time you gave them your home as security as well. This is unlikely as your borrowings are so low.

Brendan
 
If you are paying your investment mortgage and thereby keeping to the terms of your mortgage agreement then your bank cannot force you to do anything with the monies you receive from the sale of your family home.
 
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