This is disgracefully misleading. The current buy to let rate for your LTV is 5.8% You can be quite sure that the rate on your mortgage would rise to this over time. An additional 4% on €432,000 would cost you €17,000 a year in interest.The BTL Variable Rate will apply for the remaining term of the Loan. At present the BTL Variable Rate is 2.7% per annum. "
What is your profession? At some stage, the bank might seek to repossess and get a judgment against you. Would that create difficulties in your job?
"What are they offering in exchange for this?"
They will switch me to interest-only for 12 months and then full interest and capital over the remaining term.
In similar situation with bank of Ireland. Three residential investment properties in great locations - strong rents. Came off int only. Bank wouldn't agree int only extension. Increased repayments to max we could afford - all interest plus one third of capital demanded. All three loans on trackers .75 per cent margin Bank still not happy. Threatened to appoint receiver. We buckled and reluctantly agreed to sell two of three prop. Cooperated fully and worked hard to prepare properties to get max price. Now dealing with last prop and rump debt. Bank now want cap and int on last loan but will not entertain tracker. They also want interest at svr on rump. Cost of all this leaves us in worse off for having disposed of property. Feeling sick.
I think what is needed here is the Bank to a agree to a new tracker i.e. 1.7% to 2.7%. What the Bank have done is made sure it isn't a tracker.
What I feel is fair in my situation is the bank charges me svr on the portion of the loan that was due to be repaid ie the capital but leave the balance at the original tracker rate.
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