# Renegotiate Interest Only Mortgage



## quinnotis (9 Jan 2012)

Has anyone renegotiated there interest only mortgages with PTSB.


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## Oldsteel (10 Jan 2012)

What do you mean by 'renegotiate'? I have an IO mortgage with PTSB, are you looking to reduce the rate or change some other terms? IO is fairly simple, just keep paying the interest. The only problem is the rate ...


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## quinnotis (10 Jan 2012)

I have 5 interest only mortgages - they have given me until February to "sort out" how i am going to manage them. They are looking to take me off the tracker interest only and go on variable plus 1% which means I cannot afford to pay even the interest - rents have gone down - I have people in the properties who will not pay the full rent and will not move out. I even had one guy who changed the locks on the door and wouldnt let me in at all. Has ANYONE managed to come to someother arrangement with them other than the above - they are all in negative equity.


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## ClubMan (10 Jan 2012)

quinnotis said:


> I have 5 interest only mortgages


Yikes! 


> They are looking to take me off the tracker interest only


Why? Are you in arrears? Were they originally ostensibly _PPR _mortgages but actually investment mortgages?

Sounds to me like the situation may not be sustainable and you will have to look at repossession or sale of at least some of the properties notwithstanding the negative equity. Maybe they will settle for less than the outstanding mortgages on any properties that you let go?

However difficult to comment on the broader issues without more info. 

Can't comment on the substantive question about if/how _PTSB _negotiate in such circumstances.


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## quinnotis (10 Jan 2012)

I have another family in one of the houses now and they are not paying the full rent - they say that because of the reduction in the rent allowance in the budget that they cannot afford to pay - I think that I am going to have trouble trying to get them out . - Not in arrears on the investments but will be if the insist on changing me to variable Plus 1% wont be able to pay them.


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## ClubMan (10 Jan 2012)

quinnotis said:


> I have another family in one of the houses now and they are not paying the full rent - they say that because of the reduction in the rent allowance in the budget that they cannot afford to pay - I think that I am going to have trouble trying to get them out . -


Not being smart but that's irrelevant to _PTSB _and is an issue for you to deal with in the normal management of your rental property business.


> Not in arrears on the investments but will be if the insist on changing me to variable Plus 1% wont be able to pay them.


You haven't explained why they want to kick you off tracker for some or all of the properties?

Your other thread on this issue is also a bit confusing:

http://www.askaboutmoney.com/showthread.php?t=164723


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## Oldsteel (10 Jan 2012)

I see - you are on tracker IO. Mine is an SVR IO and my issue is the rate, although having seen some other posts my (new) rate of 5.05% seems cheap in comparison to some other 'SVRs'. pTSB are clearly obsessed with trackers and getting folks off them and will look at any excuse to renegotiate, which actually means get you off the tracker. SVR, as indicated in other threads, is a fairly meaningless term. I don't think pTSB have a 'standard' rate, so when they say SVR plus 1% then thats meaningless as well, they can effectively charge whatever they like when  move you on to SVR. That said, they don't want mortgages in arrears either, as to them thats probably worse than a tracker that is being serviced. So you do have a negotiating position, and I would start with 'what are you going to give me if I agree to go from a tracker to SVR?'. They were offering incentives last year, so might be an opportunity to reduce your sums owed as a way to balance off an interest rate increase.


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## Luternau (10 Jan 2012)

I find your posts hard to figure out.
You say that you are paying interest only at present. What so you mean by ptsb are giving you until feb to Sort out what you are going to do? Should you be paying more than interest but are not or are these the standard review letters that they sent out?
My understanding was that they had deferred all further reviews of buy to let trackers until February where they would have revised offers. This is since sept. No reviews since then.
Did you ever contact the group that is challenging the attempts to change buy to let interest only trackers to cap plus interest? You may have benefited from talking to them. As far as I know those that did not join it may not benefit from any positive outcome as it may be restricted to those persons named in the action.
Are these buy to let mortgages or residential mortgages where the property is being let out unknown to ptsb?
You need to give as much information as you can to benefit as much as possible from the advice on offer here.


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