Default on buy to let mortgage on a property in Northern Ireland?

[davidpatrick]

Hi


I have a buy to let mortgage on a property in Northern Ireland that although it’s rented the monthly shortfall will soon become unmanageable.


I’m currently looking into a number of different options with the bank, but wanted to know if I had to default and allow it to be reposed, what would be the future impact for given that I’m resident in Republic? A short sale on the property would leave approx 100 - 120K outstanding on the mortgage


I understand that morally and ethically this is not something to do, and I’m going to persue every other available option first, but just wanted to understand the ramifications in the worst case. For example I have a mortgage on my family home in Dublin could the Northern Irish bank try to recoup the loss this way?


Any advice would be much appreciated

 

[woodie1]

I've similar situation only my residence is in the North and the investment property (holiday home - bought at time of boom, things were going well) is in the Republic. I'm struggling to manage both mortgages and something will have to give. Investment mortgage is Interest Only until June then the bank says it'll revert to Capital repayment, thus becoming unsustainable. Have I grounds to DEMAND extension of interest only period? I've previously been given an extension but was told that interest only period would be for 5 years in total. However, when I took out mortgage I was told that I had option for repayment method; interest only or capital, seems goalposts have now changed! Any advice would be welcome. Thanks.

 

[Bronte]

You cannot demand an extension of the interest only.

Could you agree with the bank to allow you to sell it and convert the negative equity into a long loan (at same terms and conditions as current mortgage). Would that solve the problem for you and the bank. If you have a job/assets in the North they will pursue you for the shortfall, plus penalties, interest on interest, selling costs and legal costs so work with the bank it's in your interest.