Interest-only ending on investment - rent won't cover P+I - options?

S

swampthing

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We have a mortgage on a rental property - approx. 197K outstanding - have been interest only for past 5 years, which expires in March. Mortgage with EBS.

Rental income is about €850 - P+I will be about €1500.

Realistically, the house would sell for about €145K

We spoke briefly to EBS about not being able to meet the meet the payments long term (have some savings which would tide us over for a while).

What are our options? For me, ideally we'd sell and negotiate the difference. What's EBS' likely stance?

Cheers
 
What intersest rate are you paying? Your future monthly repayments of €1500 seem very high. How long is the mortgage term?
 
Not 100% sure - I'm estimating repayments based on what they were before we went interest-only. It's a 25 year mortgage taken out in 2004.
 
Just about - would leave little or nothing each month.
 
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