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

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  • 06-07-2014 11:37am
    #1
    eddiem74
    Registered Users Posts: 2,027 ✭✭✭


    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?


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