# Buy to let Mortgage Arrears



## stress'dout (22 Jun 2011)

Hi all,

Not yet in mortgage arrears on our Buy to let but possibly from next month this could be the case.currently we have only one wage as partner has been unemployed for the last year.It has been a struggle every month to make ends meet.We have made all the necessary cut backs. We currently have our PPR and Buy to let with the same bank. Our home is not guaranteed against the buy to let but I am so afraid that if this Buy to let falls into arrears they may penalise our mortgage on our home. Can banks do this if our home is not guaranteed against it? I was hoping to get interest only on our home extended for another few months.Could the bank disallow this if our other mortgage is in arrears. I have requested a meeting with the bank but they will not negotiate. I am left with no option but to pay €700 on our buy to let instead of €1050 next month. Any advise would be much appreciated. Our buy to let currently on interest only. I just need a couple of months to clear 2 other loans and then could make full repayments again.

much appreciated


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## foxylady (22 Jun 2011)

stress'dout said:


> Hi all,
> 
> Not yet in mortgage arrears on our Buy to let but possibly from next month this could be the case.currently we have only one wage as partner has been unemployed for the last year.It has been a struggle every month to make ends meet.We have made all the necessary cut backs. We currently have our PPR and Buy to let with the same bank. Our home is not guaranteed against the buy to let but I am so afraid that if this Buy to let falls into arrears they may penalise our mortgage on our home. Can banks do this if our home is not guaranteed against it? I was hoping to get interest only on our home extended for another few months.Could the bank disallow this if our other mortgage is in arrears. I have requested a meeting with the bank but they will not negotiate. I am left with no option but to pay €700 on our buy to let instead of €1050 next month. Any advise would be much appreciated. Our buy to let currently on interest only. I just need a couple of months to clear 2 other loans and then could make full repayments again.
> 
> much appreciated


 

Try contacting your local mabs office for some help

http://www.mabs.ie/


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## niceoneted (22 Jun 2011)

You don't say if you are on interest only or with capital payments on the buy to let. You are on interest only with your PPR - is that correct? When are you to go back to capital payments?

Have you rental income from the buy to let? What is the likely hood of your partner securing employment even part time or temporary. 

You could also try the money makeover section where people may be able to advise on further cuts you don't see for yourself.


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## choccy (22 Jun 2011)

make sure you keep a record of all contact with the bank- requests for meetings etc. it will work in your favour if you do get into trouble down the line if you can demonstrate you actively pursuing solutions with the bank. 
MABS also good suggestion but heard on joe duffy they completely snowed under at the moment.


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## stress'dout (22 Jun 2011)

hi all,

tks for the responses.MABS was a waste of time! both are currently on interest only.Partner actively trying get work but as you all know so are 400,000 others.Even the simpliest non skilled jobs letter of rejection!
Took legal advise today and will be sending cheque with reduced payments from next month regarding Buy to Let Mortgage.The bank are unwilling to negotiate and have kept record of all correspondence. We will just have wait and see what banks come back with.My main priority is to keep a roof over our heads and hopefully my partner will get a job soon so we can increase the payments back up then.currently not entitled to any SW either.

tk you for all your responses.


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## Greta (23 Jun 2011)

If you'll be able to get back to full repayments in 2 months and start clearing the small arrears, you should be OK. The bank isn't going to repossess your property over 700 euro or so of arrears!
It can damage your credit rating, but if you don't intend to borrow any more for the foreseeable future, it shouldn't be too much of a problem.


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## Surfer (23 Jun 2011)

Hi. Couple of things that you might want to bear in mind. 
1.You may want to consider cancelling your direct debit for the Buy to let mortgage, as if it is still in place, they could just take the difference between what you pay by cheque and the monthly amount owed. Set up a standing order instead. 
2. You may also want to open up a new current account with a separate bank so that as arrears build up, the bank do not decide to raid whatever cash is in your current a/c with them to get the arrears(you'd think it'd be illegal - but it's called off-setting or setting off - it'll be somewhere in the terms of the mortgage).


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## Bronte (23 Jun 2011)

You are incorrect in relation to one property not guaranteeing the other. If you fail to pay your investment property, eventually when there are enough arrears, they can put a judgment mortgage on your home, they are more likely to do this where there is equity. Eventually they could in fact force the sale of both properties. You have to work with them so that this situation does not arise. All correspondance should be in writing. It is in both your interest and the banks interest that it is sorted. 

For the benefit of others on here could you clarify in what way Mabs was of no help?

Also who gave you legal advice to pay a reduced monthly amount. Don't take any high handed action with the bank, it will go against you in their dealings with you.  You have to demonstrate in writing that you are making every effort and demonstrate that you cannot afford the repayments.  They may have a different opinion of what you can repay than you do.


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## stress'dout (23 Jun 2011)

Hi all,

TKS for your responses. Contacted Bank again today to advise that from next month I will be forwarding them a cheque for reduced payments for the moment. Again advised them this will be short term until my partner gains employment.I have also faxed/emailed and sent registered confirmation of this. With regards to MABS they were unable to make any other suggestions as to how to pay this debt as I have already stated we have made all cutbacks we can. I even sold my car and bought a cheaper one and used the difference to help pay mortgages.
I do not feel that we are taking "high handed action" against the banks. I have paid my debts fully for last year on one wage and due to pay cut can no longer afforsd this. My partner is actively trying to get work so we can go back and pay our debts fully and not be in this struggling situation. With regards to our solicitor we were not advised to make reduced payments.We contacted them for advise on what can happen if we make reduced payments and this will hopefully be only short term. With regards to credit history I never want another loan again! If I need something I will try and save otherwise do without! This is how my parents managed and they are happily retired with no financial worries.Hopefully by the time I am their age this will all be a thing of the past.! Best of luck to everyone and tks for all your responses.

Much appreciated!


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## Robanne (1 Jul 2011)

*Default on buy to let..can bank call in family home loan as well?*

*Default on buy to let..can bank call in family home loan as well?* 
Hi we have a buy to let property which is let but which I am in default on because 3 year interest only is up and I can only pay 650. Our family home is 1500. They want me to reduce family home payment and pay more into Buy to let. They have advised me that even if I am not in arrears on the family home that they will seize my family home as all sums owed will become due. I have checked the recent offer that they sent me and it is in the terms and conditions. I have also checked the original loan documentation and it is not there. We have two separate mortgage accounts, same account number but reference 1 and then 2. I have advised the bank that I have an appt with MABS but does any one know if this bank or others have the right to demand the payment of all monies owed if this situation occurs. The bank was bought out after we mortgaged with them. They are a foreign bank and are not taking part in the government schemes ie deferred interest. 

Thanks...


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## wbbs (1 Jul 2011)

Was that a First Active mortgage?   Their mortgages were set up legally as an 'all sums due' mortgage which I presume is common to other lenders.  Would this be what they mean?   Don't think you will find that mentioned in the loan offer, it would probably be in the solicitors part of the documentation.


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