Hi there,
Myself and the Mrs have 4 properties and I am planning to go through a PIA. I did some numbers and even after assuming that the three rentals are sold and the debt is written off when I revert back to just paying my mortgage on my home I won’t have enough income to do so.
The loan on the home is €280k and as I am 35, when the PIA is over I will be 42 meaning any proposal to clear down the loan over 20 years (say) would make the repayments circa €1,880 per month (assuming 5% interest which could be the case in later years).
What happens in that scenario? Is it inevitable that the bank tell me to jump ship or will they be more flexible. I have three kids so after normal costs I would imagine I have €1,300 - €1,400 towards a mortgage which is a lot of money but shy of the €1,800 (assuming 5% interest).
Therefore in some ways a PIA is a saviour for me as it is a potential get out of my rental loans because it is 7 years in duration by the time I get out of this I am essentially getting a new mortgage at 42 and in my line of work it is very hard to see me having a further 20 years from that date of such income which is needed to pay down the core mortgage.
Am I being a realist here or just doubly-negative.
(just to note that most of the loans are with Bank of Scotland and all are tracker mortgages. The house at home is probably worth €150k on the market but to us you couldn’t get a nice house for €200k-ish. I didn’t do out the template because I have already done so resulting in my conclusion that we have €1,400 or so towards a mortgage post PIA)