monthly income|€5,850
Reasonable Living Guidelines |€3,585
Available to pay creditors and mortgage |€2,265
Interest on home loan|€535
Available for other creditors|€1,728
Even if you pay the full repayment on your home loan, you will still have over €1,000 per month available for paying other creditors.
Investment property
Rent received after expenses| €410
Interest on mortgage @5%| €1,000
Shortfall|€600
So even after paying the full repayment on your home, you have enough to meet the shortfall on the investment.
You don't say how much you owe on the personal loan to Bank of Ireland.
I suggest the following which makes your loans repayable outside a PIA
1) Switch KBC to interest only. You are on the SVR, so they should accept this.
2) Switch UB to interest only until BoI is paid off
3) Resume normal payments to UB when BoI is paid off
UB might not go for this, although they have been very flexible in deals recently.
So your new position is
monthly income|€5,850
Reasonable Living Guidelines |€3,585
Available to pay creditors and mortgage |€2,265
Interest on home loan|€535
Shortfall on investment|€600
BoI unsecured loan|€610
Surplus|520
If I was Ulster or KBC I would veto a PIA. There is no need to write off capital.
Ulster might argue that your position is unsustainable and suggest that you sell the family home and move into the investment property . You will have an unsecured loan of €180,000 on a cheap tracker which you could easily afford to repay over 20 years.
Another possibility is that you might ask UB to give you a trade down mortgage and use it to buy the investment property as your family home.
1) Sell family home for €250k
2) Owe UB €180k
3) Borrow €55k extra from UB
4) Pay off mortgage on investment which is the new family home
New position:
family home|€100k
Mortgage|€235k
Repayments|€700 per month
Another variation if the investment property is not suitable as a family home, is that UB will give you a trade down mortgage to buy a new property for €150k. This would reduce your repayments to €1,000 a month. Probably not worth doing.