Investment mortgage in arrears, refinance costing 150k

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Dublin12345

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Hi. I'm writing this post to see if the general consensus is that I'm being shafted by BoI/ICS regarding a refinance of an investment mortgage.

The mortgage is for 400k and i was paying interest only up to 6mths ago as per the mortgage agreement on a tracker rate of 1.35%. Now that the interest and capital repayments have come in to play i am unable to afford them due to the short term of the mortgage, 18 yrs left to pay.

All the bank are interested in is that i come off my tracker and are then willing to talk and do business. The offer is to give up my tracker Rate 1.35% for a BTL variable rate of 2.35%, extending the term to 35 yrs. The total cost of the loan goes from 50k to 190k. Am i mad to sign this? my big fear is that as soon as i sign, the variable rate will rocket up to 4 or 5% and my monthly repayments will be the same as my tracker, which i can't afford anyway.

The offer letter also is very strong on the fact that i should get independent financial advice and states the fact that i am not allowed to raise the lack of advice as a reason to question this form. Am i missing something here or is this standard on every form? Where is a good place to get advice on this?

Also i have been advised that the fact that this is an investment property it means that i am not governed by any of the protective legislation for the family home. Would it be an option to say that i have no problem paying the investment mortgage but am unable to pay the mortgage on the family home? (also on a tracker mortgage) Would there be any possibility of keeping my two tracker mortgages then?

Apologies for all the questions, i just want to make sure before i sign away 150k..Also is there
 
Dublin ,AAM would need a lot more info to give you solid answers but a few things.

1. Can you afford to repay @ 2.35% over 35 years V caught with 18 years on tracker.
2.You owe k400 , is property now worth k400+.
3. Rates on tracker or variable are felt must go up in the next few years.I do not see the Bank increasing variable by any more than the increase in trackers (you may have to trust them on this?)
4. Good independent advice, is very hard to get.The reason Banks now routinely put in that clause is to protect them ,and to warn you before you sign.
5. I would always ensure the family home gets 1st priority.
(in particular if investment is in your sole name)
6. You are not really signing away k150, if this offer works you are protecting investment and family home.
The k150 is only a future guess, who knows how the next 5 years will work out?

Ultimately , it is your decision, so good luck.
 
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