Hi, looking for some advice.
I have an interest only tracker mortgage with Ulster Bank for an investment property in Ireland that is now in negative equity. Hindsight, should have sold it, obviously. The mortgage was taken out by my late husband for 10 years due to his age/health, and he got a 5 years interest only agreement in 2006. I got an extension of 1 more year last year on top of that to continue paying interest only. I am renting the investiment property and the rent is covering the payments.
Now ulster bank are saying the mortgage is unsustainable and are demanding I sell the apt and pay the shortfall from my own savings. Which I really cannot afford doing as I am on a widows pension, and the little savings I have, I do not want to be left with nothing. I own my own home, with no mortgage. The alternative is to start paying the capital and interest per month, which again are totally huge amounts of money that I cannot afford.
I feel I am paying the IO mortgage to Ulster bank all the time no problem, but now is not the right time by any account to sell porperty, it just does not make sense to me at all. I would hope in the next few years I could sell this retirment investment at no profit/loss, (but who really knows) and would be happy to do so. Are they trying to force me off my tracker IO?
what are my options? Do I have any way of just continuing IO until the next 4 years are up and then sell it at loss/profit to pay off mortgage? Should I re-mortgage with my children on the mortgage, and somehow keep the tracker mortgage but start paying the capital too (over 15 years)?
any advise would be greatly appreciated at this very stressful time.