I bought a investment property in the boom late 2005 with mortgage of 320K house now worth about 60% less. I have been on a tracker mortgage for last 4.5 yrs with interest only being paid which allowed for rent to cover mortgage with a little over each month which has maintained the house etc. Tracker will end in 6 months.
Now when I come off the tracker, the interest + capital will mean about a shortfall of about 1k a month which I have no way of ever paying, as I have a home loan mortgage of about 120K on house valued at about 200k which is separate from the investment mortgage.
Our household earning are 50K a year between myself and wife and we have 3 young children and have thought of moving to wife's homeland.
Option 1:
I will ask bank when 3 months left to go can I extend interest only, not sure of outcome but if they say no then I will simply not be able make shortfall on payment of 1K.
So just wondering are there any other options available?
I am looking for advice as I dont want to use my option 2
Now when I come off the tracker, the interest + capital will mean about a shortfall of about 1k a month which I have no way of ever paying, as I have a home loan mortgage of about 120K on house valued at about 200k which is separate from the investment mortgage.
Our household earning are 50K a year between myself and wife and we have 3 young children and have thought of moving to wife's homeland.
Option 1:
I will ask bank when 3 months left to go can I extend interest only, not sure of outcome but if they say no then I will simply not be able make shortfall on payment of 1K.
So just wondering are there any other options available?
I am looking for advice as I dont want to use my option 2