Case study Coming off interest only after 5 yrs

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dodo

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If a buy to let home is coming over interest only next few months,there is enough money each month to pay interest in my account but when Capital starts it wont be the case, I hear some people say not to contact the lender until they contact you in relation to the shortfall, just wondering why would this be the case, I thought it would be best bet to contact them and ask for another 5 years of interest only and see what they say, (might only give 1 year but no harm asking). What is best thing to do

Hi I have one buy to let .

(1) Owe 320K UB 0.8% above ECB
value 120K
intrest payments 450 a month last 5 yrs coming of interest April
and rent in 850
the 400E access each month covers maintenance,rent not paid by past tenents, property taxes etc,

((2) On my family home NIB 05.% above ECB
I owe 115K
value 220K
Cap&Int 600E a month

Earning Social is 328E a week Previous earning 40K a year
Spouse P/T work 200E a week Previous earning 20K a year
3 kids under 12
 
I think you need to talk to your bank.

Not to alarm you but as you have 'equity' in your home you need to keep onside with UB and secondly you've two different banks which can be problematic. If you don't keep UB happy they might force you to sell and 'attach' the shortfall to your home.

Yes definitely talk to UB and see what they say. Hopefully the new insolvency legislation will be of help to you.

Others might have a different viewpoint.
 
There's a negotiable solution to this case.

As you can cover the interest on your BTL, it'll make it harder for UB to take action. You have also kept to the agreement to date (I assume?).

First step, complete a Standard Financial Statement with the assistance of MABS and talk to UB. Make sure you send all correspondence via registered post i.e. if you do have a conversation via telephone or in branch take notes and send them a summary of your understanding of what was said at the meeting.
 
And to cut down on costs as you're on social welfare I think An post have a free, recorded delivery, service that you can use instead of registered post.
 
Bronte said:
And to cut down on costs as you're on social welfare I think An post have a free, recorded delivery, service that you can use instead of registered post.
Click to expand...

Thats a cert of posting but it does no confirm delivery so they can deny receipt of it if they care too. For €5.25, I would go the Reg route.
 
Ask UB for extension of interest only before it runs out, do not wait until afterwards.
 
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