I have 2 mortgages with my bank. My home loan and a rental property.
home mortgage, 220k, ECB +0.6
rental mortgage, 100k, ECB +0.8
I've had the rental mortgage on interest only for the past 3 years. Last year when the interest only period ran out I contacted the bank, sent them a letter requesting a 12 month extension and it was done no problem.
This time when I went to extend it again the bank are looking for lots more info and have requested me to fill out a "Reduced Mortgage Repayments Request" form.
I'm not sure how to approach this - I think I'll drop in and chat with them. Has anyone else been in the same situation?
I can afford to make capital repayments but I'm getting the money so cheap it makes sense to save it or use it to fund a car. I don't want to tell the bank that! I also don't want to fill out the form in such a way that makes me look like I can't really afford the mortgage. Just in case it puts a black mark against either mortgage? Would this happen?
The form looks for your income plus rental income and outgoings like mortgages (as above), loans (none), childcare.
Also have to list assets (some savings).
Filling out just those figures makes it look like I'm pretty flush - which I'm not!
(Utilities, grocery, cars, insurance, etc,etc).
Suggestions?
The options I have are (I think)
a) fill out the form and probably get refused and have to make capital repayments.
b)* fill out the form in such a way that makes money looks tight. possible risk of causing a flag to be raised on both mortgages? (am I paranoid?)
c) offer to make increased payments on my home mortgage (better for the bank as I'm paying down the cheaper mortgage).
The budget will probably do away with tax relief on interest anyway so it will probably make no difference next month!
Thanks
* I don't mind being a bit frugal with the truth with the banks - they've made it an art!!
home mortgage, 220k, ECB +0.6
rental mortgage, 100k, ECB +0.8
I've had the rental mortgage on interest only for the past 3 years. Last year when the interest only period ran out I contacted the bank, sent them a letter requesting a 12 month extension and it was done no problem.
This time when I went to extend it again the bank are looking for lots more info and have requested me to fill out a "Reduced Mortgage Repayments Request" form.
I'm not sure how to approach this - I think I'll drop in and chat with them. Has anyone else been in the same situation?
I can afford to make capital repayments but I'm getting the money so cheap it makes sense to save it or use it to fund a car. I don't want to tell the bank that! I also don't want to fill out the form in such a way that makes me look like I can't really afford the mortgage. Just in case it puts a black mark against either mortgage? Would this happen?
The form looks for your income plus rental income and outgoings like mortgages (as above), loans (none), childcare.
Also have to list assets (some savings).
Filling out just those figures makes it look like I'm pretty flush - which I'm not!
(Utilities, grocery, cars, insurance, etc,etc).
Suggestions?
The options I have are (I think)
a) fill out the form and probably get refused and have to make capital repayments.
b)* fill out the form in such a way that makes money looks tight. possible risk of causing a flag to be raised on both mortgages? (am I paranoid?)
c) offer to make increased payments on my home mortgage (better for the bank as I'm paying down the cheaper mortgage).
The budget will probably do away with tax relief on interest anyway so it will probably make no difference next month!
Thanks
* I don't mind being a bit frugal with the truth with the banks - they've made it an art!!
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