What about a situation where there is in addition to the family home an investment. Let's say AIB writes down the mortgage. Ulster knows about this, and lets the investor continue on interest only. 10 years time. Family now has equity of 300K in family home, they've made excellent headway in paying off home loan and threw an inheritence at it, and property prices have risen etc. Now Ulster says we want full repayments, as per your loan. Borrower cannot afford it, so will be forced to sell family home. Is that a crazy scenario.
Interplay between home loan and RIP loan
- Thread starter Bronte
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What about a situation where there is in addition to the family home an investment. Let's say AIB writes down the mortgage. Ulster knows about this, and lets the investor continue on interest only. 10 years time. Family now has equity of 300K in family home, they've made excellent headway in paying off home loan and threw an inheritence at it, and property prices have risen etc. Now Ulster says we want full repayments, as per your loan. Borrower cannot afford it, so will be forced to sell family home. Is that a crazy scenario.
Brendan Burgess
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Hi Bronte
As this seems to be a specific case, I have moved it to a separate thread.
You probably should provide figures.
If a borrower is in default on their investment property mortgage, UB has the right to seek repossession. If there is a shortfall, then they can get a judgement and register it against the home.
If they are in default on one loan, they should not be using an inheritance to build up equity in a different property. They should use it to pay off any arrears.
This is a very important principle for people with cheap trackers. They should plan their affairs so that they always have cash available to meet the repayments so that they don't lose the tracker.
As this seems to be a specific case, I have moved it to a separate thread.
You probably should provide figures.
If a borrower is in default on their investment property mortgage, UB has the right to seek repossession. If there is a shortfall, then they can get a judgement and register it against the home.
If they are in default on one loan, they should not be using an inheritance to build up equity in a different property. They should use it to pay off any arrears.
This is a very important principle for people with cheap trackers. They should plan their affairs so that they always have cash available to meet the repayments so that they don't lose the tracker.
BB it's not a specific case, but it would be a reasonable summary of many people's posts over the years on AAM. There's hardly a person in the country in NE that doesn't have a second property. Because most of those in NE purchased during the boom.
My understanding of some of the current AIB settlements was that part of the mortgage is parked, people will be silly and pay their inheritence of this thinking they are building up equity and ignore the problems on investments.
There is another hugh problem with comming to arrangments with banks. Revenue. When people are pushed to the pin of their coller they are going to not declare rental income. And that too will come back to haunt them..
My main point in all this is that people should be VERY careful what they sign up for, I wouldn't be at all happy that people with no financial acumen would sign something that looks good but is not.
I'm too old to trust any bank.
My understanding of some of the current AIB settlements was that part of the mortgage is parked, people will be silly and pay their inheritence of this thinking they are building up equity and ignore the problems on investments.
There is another hugh problem with comming to arrangments with banks. Revenue. When people are pushed to the pin of their coller they are going to not declare rental income. And that too will come back to haunt them..
My main point in all this is that people should be VERY careful what they sign up for, I wouldn't be at all happy that people with no financial acumen would sign something that looks good but is not.
I'm too old to trust any bank.