Interest only period finished, now what?

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gabbo

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Hello,

I have a KBC mortgage on an investment property. It was a 25 yr term, 5 Interest only, 20 principle + interest.

The 5 years have finished this month and I got a letter saying the repayments would go from 450 to 1290.

We simply can't afford the full repayments.

What should we do now? Selling, as you can imagine is not really an option.
 
come clean to KBC and ask them can you term it out for an extra 5 years - ie back to a 25yr deal - most likely they will say it has to be C&I - unlikely they will give you interest only at this stage, but it's worth asking.
 
and what happens if they offer a 25 year P&I but still can't pay? Just put it on the market and hope to get it sold and make up the difference through some CU loan before they repossess and firesale it?
 
keep it for 5, sell it on, make a profit. same as the other 300,000 "investors"
 
If your repayments were only 450 a month till now presumably you've been making a significant return on rental income. What have you done with this? What will be the shortfall @1290?
 
gabbo said:
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The 5 years have finished this month and I got a letter saying the repayments would go from 450 to 1290.

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Click to expand...

I don't understand these figures, surely the interest would have been a lot higher as when you start a mortgage the main part of your repayment is interest.
 
A 270k mortgage interest only on an ECB+1% tracker would cost 450 a month.

Repayment mortgage of 270k at 2% over 20 years is 1360pm so the OPs figures are fine.
 
Phoned them today. Went through some sort of incomings and outgoing calculator over the phone. Passed up to credit. Maximum deferrment of paying capital is 6 mths.

Said "you know after that 6 months, there's no guarantee I can pay C&I then"

Went in to a big speel about "you'll be on the ICB black list, you'll never get another credit card for 6 years". I replied that if the money isn't there, it isn't there...that's it for the moment anyway.
 
I have a 200k, 30 yr home tracker mortgage interest only for 5yrs, 50% LTV
Current int rate 1.5% = repayment €250/mth
5yrs expires in 2 yrs.

what happens when 5yrs is up?
do I still retain the tracker mortgage, ie at current 1.5%
do I have to pay 5yrs capital repayment in one lump sum?

or do I continue with same tracker rate plus added capital amount /month?

appreciate any replies
 
och aye said:
I have a 200k, 30 yr home tracker mortgage interest only for 5yrs, 50% LTV
Current int rate 1.5% = repayment €250/mth
5yrs expires in 2 yrs.

what happens when 5yrs is up?
do I still retain the tracker mortgage, ie at current 1.5%
do I have to pay 5yrs capital repayment in one lump sum?

or do I continue with same tracker rate plus added capital amount /month?

appreciate any replies
Click to expand...

I'd imagine in 2 years time your balance will be 200k and you will have the 25 years to pay it off. Should keep your tracker rate, but may not be the 1.5% in 2 years.
 
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