EBS mortgage arrears - question about tax

Discussion in 'Mortgage arrears & negative equity case studies' started by brownsarahj, Feb 12, 2018.

  1. brownsarahj

    brownsarahj Registered User

    I have an EBS mortgage which went into arrears over the past 8 years. After employment and moving around a whole lot, we now live in Bournemouth in the UK. We were in Manchester before but finally got jobs here.

    The EBS wrote last year that they wanted to take back the property until I paid up full loan immediately and I got the help from someone at the IHMO to assist.

    It has been a very long and tedious process back and forth for about 10 months. It takes the EBS around 6+ weeks every time to request one more item of data, etc. Very slow process.

    So it seems we are nearing the end of the negotiations and now they have written to ask for evidence of the tax payable on the property as they are classifying it as a BTL now. We have never formally changed the mortgage to a BTL as it has always been classed as 'primary residence'. We haven't paid any taxes on the rental income (for various reasons mostly related to lack of income, long periods of vacancy etc all not great reasons I know)

    My question is this :- what do I say to them now ? If they know that I havent paid taxes in the rental income, does it only affect their assessment of my ability to repay or do they inform the revenue? I want to ask here before I get respond.
  2. Protocol

    Protocol Frequent Poster

    I would be more worried about the Revenue than EBS, in terms of tax evasion.
  3. brownsarahj

    brownsarahj Registered User

    Thanks Protocal.
    I pay my taxes here in the Uk, including overseas income etc, My accountant here in Birmingham reviewed my bank accounts and interest and decided that I had no profits or money to pay in revenue. But in the UK there is no need to "report in" if there is no tax to pay on the income.
    However the law in Ireland may be different for reporting in to Revenue even if no tax is payable. My accountant will write a letter for the EBS explaining.

    The question here is what is the relationship between EBS and Revenue and what are they doing with the information?