After 10+ years of what ifs! Stress, anxiety and feeling hopeless. We have decided to sell our PPR to reduce mortgage payments and tackle our 2 Buy to lets mortgage debt.
On the home we are selling we have a €50k mortgage @ ecb+1.25%, just under 7 years remaining. We also have a 1plan mortgage on the home of approximately €100k @ 4.5%SVR just under 13 years left on that one. Monthly mortgage payments on home of €1450.
An offer of €280k made on the home which is fair.
We have two buy to lets both restructured by PTSB over 3 years ago.
House A: Mortgage debt €163,000, value €95,000 - €105,000 just under 17 years left on mortgage.
+1.10% Tracker mortgage, €60k interest only in main account. €103k warehoused at 0.50% interest rate. Rent pm on house A: is currently €550pm, but had no rental income for over a year previous to the new tenant, as it needed a lot of work which could only be completed as and when money was available.
House B: Mortgage debt €184,000, value €155,000 just under 17 years left on mortgage.
A whopping 5.8% SVR, €71,000 in Main account, €113,000 warehoused at 0.50%. Rent pm on house B: currently €650pm.
We could buy a house for the €120k equity after fees, we would release by selling our home, but that wouldn't help us repay the Buy to let mortgage debt.
We know not to pay down the lump sum off House A: the buy to let on the 1.10% tracker, as that would be crazy.
Our only other option assuming no one can suggest an alternative is paying the €120k off House B which we would be fine living in as although not a patch on our current home, it's a good house in a good area: leaving us with a €64,000 mortgage on what would then be our new home.
Mortgages were all sold to Start mortgages at the begining of this year. Problem is, if we sell our home which is not attached in any way to the buy to lets, has never been in arrears or restructured, and we pay the €120,000 off house B: will Start honour the remaining 17 years on the 2 buy to let mortgages which we would then be making full payments on. Or is it likely that they will call in the outstanding debt within the next few years. In our mid 50s with our credit record in shreds, we would never be able to re-mortgage if the loans were called in.
Other concern is the 5.8% interest rate on house B, which would likely be our new home, that interest rate is shockingly high compared to normal interest rates. Again age and credit history would leave us no options of switching.
Would there be any chance that Start would reduce the 5.8% interest rate to a standard rate of interest if selling our home meant current overall mortgage debt was reduced from €497,000 down to €227,000, considering they are getting rid of a remaing 7 year €50k tracker @+1.25% and we would also be making full repayments on the remaining mortgage debt which would be ridding them of interest only payments on restructured main mortgage accounts and €216,000 in warehouse accounts earning them just 0.05% interest.
I would welcome any advice or any other suggestions on options that we may not have thought of or any ideas how to approach Start with any of these possibilities.
On the home we are selling we have a €50k mortgage @ ecb+1.25%, just under 7 years remaining. We also have a 1plan mortgage on the home of approximately €100k @ 4.5%SVR just under 13 years left on that one. Monthly mortgage payments on home of €1450.
An offer of €280k made on the home which is fair.
We have two buy to lets both restructured by PTSB over 3 years ago.
House A: Mortgage debt €163,000, value €95,000 - €105,000 just under 17 years left on mortgage.
+1.10% Tracker mortgage, €60k interest only in main account. €103k warehoused at 0.50% interest rate. Rent pm on house A: is currently €550pm, but had no rental income for over a year previous to the new tenant, as it needed a lot of work which could only be completed as and when money was available.
House B: Mortgage debt €184,000, value €155,000 just under 17 years left on mortgage.
A whopping 5.8% SVR, €71,000 in Main account, €113,000 warehoused at 0.50%. Rent pm on house B: currently €650pm.
We could buy a house for the €120k equity after fees, we would release by selling our home, but that wouldn't help us repay the Buy to let mortgage debt.
We know not to pay down the lump sum off House A: the buy to let on the 1.10% tracker, as that would be crazy.
Our only other option assuming no one can suggest an alternative is paying the €120k off House B which we would be fine living in as although not a patch on our current home, it's a good house in a good area: leaving us with a €64,000 mortgage on what would then be our new home.
Mortgages were all sold to Start mortgages at the begining of this year. Problem is, if we sell our home which is not attached in any way to the buy to lets, has never been in arrears or restructured, and we pay the €120,000 off house B: will Start honour the remaining 17 years on the 2 buy to let mortgages which we would then be making full payments on. Or is it likely that they will call in the outstanding debt within the next few years. In our mid 50s with our credit record in shreds, we would never be able to re-mortgage if the loans were called in.
Other concern is the 5.8% interest rate on house B, which would likely be our new home, that interest rate is shockingly high compared to normal interest rates. Again age and credit history would leave us no options of switching.
Would there be any chance that Start would reduce the 5.8% interest rate to a standard rate of interest if selling our home meant current overall mortgage debt was reduced from €497,000 down to €227,000, considering they are getting rid of a remaing 7 year €50k tracker @+1.25% and we would also be making full repayments on the remaining mortgage debt which would be ridding them of interest only payments on restructured main mortgage accounts and €216,000 in warehouse accounts earning them just 0.05% interest.
I would welcome any advice or any other suggestions on options that we may not have thought of or any ideas how to approach Start with any of these possibilities.
