If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)

Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Buy to Let / Negative Equity / Interest & Capital - Can term be changed?

eddiem74 · 2014-07-06 10:37:25

So we purchased a property to rent out in 2005 and as with many in a similar position are now in the situation of having to pay interest and capital and the property is in negative equity. While we are able to service all our outgoings just about with a daughter now in college things are becoming a bit more of a struggle.…

06-07-2014 10:37am

#1

eddiem74

Registered Users, Registered Users 2 Posts: 2,027 ✭✭✭

Join Date: August 2007

Posts: 1768

So we purchased a property to rent out in 2005 and as with many in a similar position are now in the situation of having to pay interest and capital and the property is in negative equity.

While we are able to service all our outgoings just about with a daughter now in college things are becoming a bit more of a struggle. The buy to let mortgage was for 25 years and we were allowed interest only for 7 years of that but then the bank insisted on capital and interest repayments which was fair enough from their point of view. My wife has worked on and off since the payment structure changed and we have 2-3 times dealt with the bank (Ulster Bank) on allowing short term interest only / set payment amounts while she was out of work.

However I have never spoken to them with regard to setting a new term for the loan and reverting back to an interest only arrangement as a result. As the property was an investment so to speak is this something that can be discussed with the bank from that viewpoint? Given I am paying and have always paid would they be open to extending the term or resetting again from the start e.g. 25 years / interest only?

Interested in peoples opinions / experiences on how to approach this. Or is a financial broker / advisor the best avenue?

0