confusedude
Registered User
- Messages
- 18
If you think our bankrupt banks and taxpayers will ignore these savings and give you debt forgiveness then you are assuming very wrong in my opinion. If there ever is any form of debt forgiveness you will have to show all your financial details and basically prove that you cannot pay...
So, in my opinion when you are deciding what to do you shouldn't be worried about losing out on debt forgiveness as it definitely won't be applicable to you!
You do have a valuable contract to borrow €300k for the next 30 years at below market rates. It's possible that some other lenders may follow the PTSB's lead and give you a bonus for paying part of your mortgage early. So, if you pay €140k, you might get credit of €14k for it.
Which is your lender?
Most likely: Bank of Scotland - they want out of Ireland
Possible: AIB, BoI, EBS, Irish Nationwide - they want to deleverage
Very unlikely: the rest of the lenders -under no pressure
I would put family issues ahead of financial issues - you can afford to.
Put the house on the market. If you get a good offer take it.
If the lender subsequently introduces a bonus for early repayment, tough.
Another alternative is to rent out your home and wait for a deal to be offered. This would be worth doing, if there was a definite prospect of some inducement being offered, but there is no such inducement.
If you do decide to sell, before you do so, contact your bank and ask for a deal. It is unlikely that you will get a deal, but you may as well try.
Brendan
As an alternative to being a 'reluctant landlord' you could get an agency to deal with your rental matters.... You would be probably losing money on the transaction i.e. rent not covering mortgage but it would be damage limitation and may be a means of getting your money back in the long term. You need to balance the loss over a few years while renting out versus the chances of the property to return to nearer buying price. It would at least be a start providing you could get another mortgage if you need it to make up the difference in your savings and the price of your new house.
I would put family issues ahead of financial issues - you can afford to.
Put the house on the market. If you get a good offer take it.
If the lender subsequently introduces a bonus for early repayment, tough.
An alternative for you is to stay where you are longer than you want to, but I have no sense of the urgency of your move. Even in the PTSB case, there was a clawback if you sell within 6 months. Others may have a longer clawback.
Whether the house is let out or not does not determine whether it is your PPR, so if you choose either of these options it will have an impact on your trs and possibly mortgage rate and will become liable to NPPR tax.
Did you actually check your mortgage documentation yourself? It may not mention PPR so you may not lose the tracker. I wouldn't just go by a phonecall to the bank, especially when you didn't ask them to check your mortgage documentation either.
Is the mortgage in both your names.
There is also Option 3 as Brendan stated above which I think you should explore. Have you tried contacting your local authority asking them are they buying prooperty in your area ?
Also get on to your lender to see if they would be willing to do a deal on the tracker.
Oh, I guess then that if the house is left vacant then it will also lose status as a PPR. What happens if a person leaves the country and rents out their PPR ?
Did you actually check your mortgage documentation yourself? It may not mention PPR so you may not lose the tracker. I wouldn't just go by a phonecall to the bank, especially when you didn't ask them to check your mortgage documentation either.
This story has become quite complicated when it actually is quite simple. You sell your house for what you can using up your savings to pay the negative equity. You rent somewhere better for about a year and if happy in the location you purchase there. 90K in permanant jobs buys a very nice house. It certainly does in these hard times.
I find myself in a similar situation to yourself and have to rent out what was our home for 5 years as we are moving counties for new jobs. Also have very similar mortgage with AIB. Did you ever get confirmation re your interest rate increasing due to property becoming a rental?
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