Am I obliged to change from an Interest only to a Tracker?

T

tnx

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Hi and thanks for any suggestions !

I received a letter from ICS which stated that my 'Interest Only Combo' of my mortgage will shortly expire and my new repayments will comprise of the principle and interest with a Tracker VAR ECB +0.90% (rate 1.400%).

All very well except it means my repayments go from 1,500 per month to 12,400 euro which is completely impossible for me to repay. :mad:

How can I get ICS to continue the interest only combo. I have never defaulted but I will be forced to if I have to pay the tracker rate.
 
tnx said:
I received a letter from ICS which stated that my 'Interest Only Combo' of my mortgage will shortly expire

All very well except it means my repayments go from 1,500 per month to 12,400 euro which is completely impossible for me to repay. :mad:

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What does it say in your original contract about the interest only period.

When you borrowed this money originally how did you intend on paying it back after the interest only period ended, or even if left on interest only for the entire duration, how did you intend on repaying the original loan.

Do you have any other assets?

You probably cannot make ICS to do anything. If you cannot afford it, they will probably force you to sell it and then come after your other assets or income. As previous poster suggested please fill out all our details for more specific advice.
 
Wrong thread for this discussion.
I think you mean switch to capital and interest -not move to tracker. Big difference.
 
tnx said:
...my new repayments will comprise of the principle and interest with a Tracker VAR ECB +0.90% (rate 1.400%).
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No, I think it's clear (s)he's being moved to capital and interest at a tracker rate (and a very attractive one) — the problem is that (s)he can't afford the repayment amount.

Without more info — term and loan amount, primarily — it's hard to advise further.
 
Sorry I can only get online late in the evening.

DrMoriarty you are correct ! My situation is really complicated and it would be hard to complete the extensive questionnaire, suffice to say I can afford the interest only repayment as is, but definitely not the capital and interest repayment they are requesting. The house isn't in negative equity and I absolutely don't want to sell it as my eldest children live there (I am currently working abroad).

Joe_90 you're on the button with the figure. Many investments I have don't produce enough return to cover the new repayment terms.

Bronte I can't locate the mortgage file but when I took the mortgage out I guess I figured some investments I had would do better than they did and I could pay it all off when this time came. A: The years flew by and B: The financial situation is a lot worse than seven (I think thats when I took it out) years ago and there is no way I can revert to a Tracker.

Basically I need to know how lenient are they with regard to continuing the arrangement as it is, I could give them a second charge over other investments that have equity. Or will they demand the astronomical monthly repayments and force me to sell the property if I can't make these repayments.

Are they now lead by the new guidelines and if so are they partial to negotiation. Or because they they themselves make nothing out of mortgages do they try and force people to default so they can get out of their commitments. I have never defaulted.

I suppose refinancing on an interest only basis with another mortgage is out of the question in the current economic climate.

Thanks everyone for your help.
 
It's pointless trying to give meaningful answers, if you are not prepared to give meaningful information.

Brendan
 
Thanks. Sorry i don't conform to your criteria. I though this was a platform for advise I didnt realise it was forensic examination of ones financial life.

Obviously I don't meet the criteria to warrant any help. I guess this forum is a metaphor for what's happening in Ireland. Bully banks and bully advice.

All I asked was if there was any latitude from the mortgage companies.

Don't worry (which i'm sure you won't) I've got through life without the advise of strangers. I'm sure I'll figure it out. (I'm also sure this post will be deleted anyway but really you ought to show a bit more latitude with those who are going through seriously difficult times. Not everyone is spreadsheet savvy.
 
tnx said:
Thanks. Sorry i don't conform to your criteria. I though this was a platform for advise I didnt realise it was forensic examination of ones financial life.
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How then would you expect quality advice ?
 

Whao...cool the jets! I know this situation must be stressful, but be fair to people here.

No one asked you for forensic detail, or a spread sheet of data, just basic information. If you are not prepared to give that information, that's your choice, but don't take out the sarcasm book and lash out at the very people you were hoping would help you. Some level of information is required to offer advice!

Had you given it, you would be amazed with the advice that would certainly have come your way. By the way, you must put some value on this site given that you came here for advice-so why rubbish it/slag it off?

Good luck sorting that large financial problem out on your own with the banks with the arrogant attitude displayed above! Lots of unreasonable people in the one room-that would be worth seeing!
 

Ring them. Thats the best advice I can give based on the information provided.
 
If this is the case, and there are other similair threads, it makes no sense for the banks to do this. Are they intentionally trying to push more repossessions and judgments? They are essentially forcing those good debtors on their books into the red, where on the other hand, they have heaps of bad debtors they are being encouraged to try and help back into the black. It isnt helpful to growth of the economy. I wonder if its intentional and strategic?
 
In the UK people who took out interest only mortgages are reaslising now they will not have enough to pay off the capital, there was a lot of miss selling of endowment mortgages in the 80' and 90's. However, I have heard of one person of these interest mortgage holders went to the bank and asked if the mortgage could be extended for a further 18 year which would take that person in their seventies before it is paid off. However the bank said that the mortgage could extended and also could add some of their siblings to the mortgage deed if they meet the right critera also there was no restriction on the amount of offsprings that could be added to the mortgage.

It is worth asking the bank if the above is possible for you. This would make sense for a lot of people. I am sure the banks only want their money back.

http://www.guardian.co.uk/money/2013/may/02/interest-only-mortgages-shortfall

http://citywire.co.uk/money/interest-only-mortgage-dont-bury-your-head-in-the-sand/a677245
 
tnx said:
Obviously I don't meet the criteria to warrant any help. I guess this forum is a metaphor for what's happening in Ireland. Bully banks and bully advice.

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I think that's an extraordinary mean statement as is the rest of your post to people on here who give of their time and effort to try and help people. We are only asking questions to find out your full situation as we have found out over time that people tend to leave out very important facts.

None of us can tell what stress you are under as you have not given us much detail. And if you've managed to borrow 1.2 million and have other investments then presumably you can afford proper legal and financial advice rather than us mere AAMers.

Why don't you sell the property as it's not in NE and pay the 1500 as rent on another property for your kids? I advise this course of action as based on what you've posted it makes sense. Why would the bank agree to continue with the, for them, loss making tracker? They have you over a barrell it would seem to me. And you will not be in any hardship if they force you to sell unless there is something you are not telling us.
 
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