Lenders' policy on investment mortgages where there is equity in the family home?

Brendan Burgess

Brendan Burgess

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I have been asked about a case where the borrower is trying to do a deal with ptsb on an investment property which is in serious arrears.

The mortgage is a €200k tracker on a property worth €100k.

The borrower is unemployed and can't keep up the interest and capital repayments.

But they have a family home worth €300k with no mortgage.

The borrower wants ptsb to take back the house and write off the shortfall.

I can't see why ptsb would do this?

They could sell the family home, pay off the mortgage shortfall and buy a new property with the remainder.

Brendan
 
Is the property let?

If yes - is it an adequate rent with rents rising.

If not - needs to be.

What is shortfall if rent paid over?

They may be stressed out completely which does not help.
 
No harm in asking for this to be done. PTSB may not consider taking a judgement against the PDH if the borrower refused to co-operate. I certainly would'nt approach the Bank with an offer to sell the family home!. Are both PDH and BTL property in joint names?
 
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