Are Banks giving landlords time

R

robert 200

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Are banks allowing landlords in negative equity time for capital appreciation to kick in?

If they are it would surely be beneficial to the tax payer.

C.S.O. figures show average property appreciation currently running at 16.8%.
 
In general no.
I acknowledge your point but in practice this would be indirect property speculation by the Banks. Officially we do not have a view on the future of property prices and history has taught us one very valuable lesson in taking such an approach.
Now having said that, I would agree that if the location is favourable there is merit in delaying action to force the sale of a property in the event that the borrower is unable to service some portion of the loan principal.
 
Are you paying full interest and the capital repayments?

Negative equity doesn't come into the equation if you are honouring your agreement with the bank.
 
Good question Eirman ,

No , I am not paying full interest and capital repayments. I am paying almost 3 times the
interest only repayment and they are still forcing me to sell.

They are in very favourable areas i.e. South City - rents rising and capital appreciation steady.

This seems terribly unfair to me.
 
Hi Robert200, you should provide more details. You are on an interest-only mortgage (you are not paying interest-and-capital), and you are paying three-times-interest? We're missing a lot of details ... ..
 
You are paying back a good bit of the capital each month (but not enough to keep the bank happy) .... Am I correct?
Important Question ... Who chose your present level of capital repayment?
Is it an arbitrary figure, a calculated figure or all you can afford?

Why bother paying back any capital, it if the banks are dissatisfied with it and are going to take action anyway?

Are they just moaning and looking for more or are your capital repayments holding them at bay?
 
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AIB chose the repayment figure based on my SFS.

They threathened to appoint a receiver if I didnt make this repayment. I have no problem
with the repayments - my problem is I need more time for capital appreciation to kick in
thus eliminating the deficit.
 
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