FredBloggs
Registered User
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That's a situation I may find myself in next year.
Can you cover the remainder from your non-rental income? Do you have savings? Do you have a ppr? Could you take in rent a roomers? Reduce outgoings etc?
Well presumably starting repossession proceedings could be one option?What are the banks options then?
Well presumably starting repossession proceedings could be one option?
Depends on how much it would go for and how much is outstanding on the mortgage I suppose? Worst case they could decide that you cannot service the loan and to cut their losses. I have no idea of the odds on this happening versus other possible outcomes.Is that something that would benefit them though?
No idea. But if you are in danger of falling behind on the repayments or being unable to meet capital plus interest annuity repayments then you should talk to them sooner rather than later.I suppose my question is, what is the most likely course of action by teh bank ?
Is that something that would benefit them though?
This particular property has been rented out for the last 4 years with zero gaps.
The bank would still be getting a secure monthly interest payment.
I suppose my question is, what is the most likely course of action by teh bank ?
If they repossess it, they may nit be able to sell it themsleves for enough to cover the outstanding mortgage (as it has been remortgaged already and as a result as a pretty high LTV)
Can we safely say then that this theory has more risk then originally thought?
http://www.askaboutmoney.com/showthread.php?t=59038
SO basically I'm borrowed up to the gills.
And I'm assuming that they wll always be rented so over the long term should rise. That's teh hope !!
It's a gamble I'm prepared to take on.
I'll get back to yee in 5 years time to let yee know if i was right or wrong.
Hi Qwerty
The banks will take a very practical approach to your situation. As it is an investment property, you should keep it interest only as long as you are allowed. If you are up to date with your payments, the banks is not going to force you into a repayment mortgage.
Do you have a mortgage on your home? What is the equity on it? It makes good financial sense to pay off your home loan first because the tax reliefs are not as generous.
If the banks insist on repayments, continue to pay the interest only if that is all you can afford. The banks would not get a repossession order as the judge will recognize that you are doing your best.
Brendan
Can we safely say then that this theory has more risk then originally thought?
http://www.askaboutmoney.com/showthread.php?t=59038
I would have generally expected pragmatic leniency from lenders and courts (if it gets that far) in the case of owner occupiers in difficulties with their mortgages but not necessarily the same leniency in the case of an investor in a similar position?
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