Mortgage Arrears rental properties: If the lender takes court action , credit ratitng

[pytelium]

I have 2 rental properties..the mortgage is about 3k in arrears and the lender is threatening to end the interest free period...i am not able to pay the interest let alone the full amount..

I owe 170+ arrears...but the 2 houses may only make 140-150k in total ..if I can sell them at all..

The mortgage is classified as commercial and is not registered with the ICb.

If the lender takes court action,at what stage will it affect my credit
rating..no arrears on any other loans..

 

[Ravima]

Are they let? What is the rental income? Why can you not make interest only payments? €170K interest only would not be more than €420 pm. Surely the properties are bringing in that much between them.

 

[pytelium]

one property is let at 360 pm...the interest only is 695 per month..the other property needed refurbishment after the last tenants and this has taken a few months..will be ready next month..