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Where were you when the current mortgage was approved? Were you living in Ireland, using the house in question as your PPR?
If so, is the bank aware that you are now renting it out?
How much equity do you now have in the property?
On the face of it, it's very hard to see any bank in Ireland wanting to do too much for you.
If you don't have a load of equity in the property (and with the rent covering only 62% of the mortgage I'm guessing you don't), your bank would be hugely exposed in the event of the property crash we may already be on the cusp of. And, of course, your affordability looks even ropier as interest rates continue to rise. If you were resident in Ireland they could pursue you but they know it'd be a hopeless cause with you across the Atlantic.
They are unlikely to believe that you are on the verge of coming back to Ireland if you look for a switch to interest only.
I think you'll have to put up with the cashflow issue.
I'm unclear. The tone of your post implies you're taking issue with me. When I read the link, I can't see aything that might support such an argument. Quite the contrary - the article is as bearish on property as I've been for quite some time and, as I thought, I communicated this in my previous post.Have a look at this http://www.boards.ie/vbulletin/showthread.php?t=2055033806 and think on.
It is both disquieting and a measure of the extraordinary lengths to which financial institutions in this country seem to be prepared to go to keep the whole (increasingly unsustainable) show on the road that they would be prepared, as an apparent matter of policy, to switch to interest only a borrower who:Given that the property is an investment your lender (or AN Other if they aren't forthcoming) should allow you to switch to interest only on a straight swap basis; it's more tax efficient and you will be less likely to default on the lower payments.
This is an example of the madness entering the market at present. I as a property investor loveto hear this chat as it means fools will sell quality rental property at a discount. Fenway if at all possible hold esp if good location etc as galway will always have good rental potential and the bank know this also. Going interest only is a good idea in your case imho. Remember with little equity in you are leveraging returns which would be a multiple of which you could earn elsewhere.Folks, it's time to dump those so-called "investment" properties.
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