End of tracker mortgage term....what options do I have?

P

postflop

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Hi
I'm about to come out of a five year tracker interest only mortgage with the Ulster Bank. The rate is 1.25% above ECB rate and is due to expire in August 2011. The mortgage was originally with First Active and automatically moved to Ulster bank. The mortgage is for three investment properties with total borrowing €450k. Currently, the rental income from the three properties just about covers mortgage payments and all other costs associated with investment properties. The Ulster Bank have confirmed I will automatically move to a interest and capital mortgage with a monthly interest rate of 2.00%. The repayments will be approximately 3 x the current repayments. I am in the process of setting up a meeting with an Ulster Bank mortgage advisor.

Has anyone been in a similar situation and what is the best deal available? I simply wont be able to make the repayments if I am forced to run with the interest and capital.

Welcome your comments and experiences on this one

Thanks
 
I did not know that a tracker mortgage had a fixed time limit associated with it. Is this because you were originally a First Active customer and that was how it was set up? It worries me otherwise because we have 2 tracker mortgages, one of which is with Ulster Bank.
 
I think OP just means the 5 yr interest only period is up in August, the tracker rate will continue but as mentioned with full capital and interest repayments.

I know there was a facility at one stage recently to request a further 2 yrs interest only on investment mortgages, you might ask the adviser is this still the case. It was granted once requested in writing prior to the expiration of the 5 yr term, it may have been dependent on there being at least 15 yrs left to run on the mortgage when int only finished.
 
Hi I am coming out of a 5 year interest only option on a mortage and am looking for an extension of 2 years if possible I am waitin on their reply. How did you get on did they extend your interest only option?
Thanks
 
Hi,
I am in a similar position, received my letter on Thursday to say 5 years interest only is up and I must start paying capital. I have 3 investment properties all with Ulster Bank. I can pay capital on one maybe two of these. I phoned them and was advised that to extend this I would need to apply by filling in an income and expenditure form.

The broker who set up the mortgage advises me that they are playing hard ball.

Any experience of this?
Vic
 
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