interest only ends on investment property

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lopin10

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I have a number investment interest only tracker mortgages with my bank at .75% over ECB . The question I have is at the end of the 5 year term the interest only part will come to an end and I will have to start to pay the princible. What is the position regarding extending the period of .75% on interest only. Has anybody had to deal with there bank regarding this situation
 
I have heard that if you want to continue paying interest only, the bank will renegotiate the rate (upwards) and you will not get the tracker rate.

You are in effect breaking the existing contract.
 
I recently reverted to interest only but they only allowed that because I was moved to a three day work week with corresponding income drop. Essentialy they will listen to you if you can prove via an income/expenditure report that you are struggling with repayments.

BTW, I didn't lose my tracker!
 
I went to my First Active last week to get updated information. What they would do is extend the term of the mortgage if you have a pension the will extend the mortgage until you are 70 if you dont they will extend to 65. They will let you keep your .75 interest rate
 
Seashells and lopin10 if you don't mind me asking, how are you proposing to pay back the capital?
 
Bronte said:
Seashells and lopin10 if you don't mind me asking, how are you proposing to pay back the capital?
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Hi,
I am in a similiar position in that I have interest only mortgages on investment properties. I deposit monthly an amount into a seperate account to cover the capital. With interest rates so low for borrowing at the moment, I find that this way works well for me as (a) I have control of the money and (b) I have still full (75%) tax relief on the borrowed amount as the capital is not reducing.

If interest rates change upwardly then obviously I will review the situation.
 
I'm in a similar position. Rang my lender today for a chat - my 3 year interest only period is up. I'm on a tracker now at 1.35% over ECB. Original term was 25 years - the capital must now be re-paid over 22 years, so the jump in repayments is rough. They offered to re-negotiate (almost a knee jerk reaction, I didn't ask), told them I'd think it over.
 
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