Ulster Bank Interest Only Ending

I have a number of properties with UB that are coming to the end of interest only. I cant afford capital & interest payments. Can anyone advise how to approach UB and deal with this situation. All my mortgages are trackers & all my properties are in negative equity. I did get a 2 year extension November 2011. Thanks

I know of some one in a similar situation.

His bank (not UB) wrote to him and pointed out that the IO period had come to an end and asked for Int and Cap payments.

He wrote back to them saying "as you know, (I love that bit), the intention of mortgage was to allow me to hold the property for resale on the expiry of the IO period. As the likely sale proceeds at the present time are less than the outstanding mortgage, his will not be possible. I await your suggestion.

He continued to pay IO and 2 years on has not heard back from them.

I certainly would not approach UB, sit back and wait. You may not hear from them for years. UB are unpredictable.

I was in this exact situation, and had to go through one of their financial analysis type things...forgot what they called it now.....but I had to gently massage the figures to get another 2 year extension. They will automatically put you on capital and interest (with only 10 days notice for me). So be proactive in approaching them 1 month before this happens.

cremeegg said:

"as you know, the intention of mortgage was to allow me to hold the property for resale on the expiry of the IO period. As the likely sale proceeds at the present time are less than the outstanding mortgage, his will not be possible. I await your suggestion.

Click to expand...

That's brillant, and in that case it worked. And it's true too for many investors.

Some conflicting advice there Moulton.

Do you pay by DD or SO.

I suggest that you cancel any DD and replace with a SO. Using an account that is not with Ulster bank. Thus putting you more in control of actual payments.

Also I would not keep any money lying in a UB account.

Just taking up Landlords point about 10 days notice. Well, you are aware of the situation now, any contact from UB will hardly be a surprise.

Thanks All

I will cancel all direct payments and set up standing orders, if there are any other ideas that might help please share

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Brendan