At the moment we are paying both mortgages in full but it is killing us
What is the original LTV% of the rental property mortgage? I don't consider it a BTL as it wasn't bought to let as such, presumably it is/was a private residential mortgage. My basic understanding is that there can be differences in the contracts.
I'm struggling with your idea of a 'profitable investment'.
The house is in negative equity of 80,000.
The Market rent is currently 350 less than monthly repayment.
Not the case I'm afraid!! Any request to a bank for forbearance will be treated in accordance with affordability. I.e. Amount of funds available to meet loan repayments after deduction of standard living expenses. Every bank will expect that Home Loan payments are prioritised. I.e. in order to be regarded as complying with MARP you will be expected to meet HL repayments first and if you don't the Bank can treat you as non-cooperating and exit you from MARP.You are more likely to get a rescheduling of your home loan than your investment property.
surcharge will be applied to loan arrears and a bank is entitled to commence proceedings for either reposession or other!
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