We bought a modest house 8 years ago. Then released equity in it and bought our now family home. We kept the original house as an investment property. Both properties are on tracker mortgages. Both are in massive negative equity (about 300k combined). Since the purchase we have had two children and now have childcare costs. Also the rental income has fallen dramatically, plus like everyone else we've had tax increases. We're both on salaries of c. 40k with no hope of increases (nothing dramatic anyway). Repaying home mortgage with capital at the moment and investment property is on interest only.
What happens if we can't continue repayments on our investment property? Don't think that the bank will keep us on interest only forever. Even though our home is in negative equity could they put a charge on it and eventually force us to sell, when it's paid off or back in positive equity? Would a court look favourably on the fact that we're trying to pay back the debt?
What happens if we can't continue repayments on our investment property? Don't think that the bank will keep us on interest only forever. Even though our home is in negative equity could they put a charge on it and eventually force us to sell, when it's paid off or back in positive equity? Would a court look favourably on the fact that we're trying to pay back the debt?