Hi Thomas
The interest on €118k @2% would be €2,300 and you are paying twice that. So this is a profitable mortgage and it makes no sense for the bank to sell it.
It's a bit out of the control of the banks.
The Central Bank has said that this profitable loan is "non-performing" because it's not performing in line with the original agreement and won't be paid off by the time you are 65. So the lender has to allocate more capital against it. It's bonkers stuff, but that is the Central Bank for you.
You have a few options.
Presumably you have applied for a restructure and it has been refused?
You can battle it out. Continue paying €400 a month and BoI will probably initiate court proceedings. It will take them a long time to get an order for possession, and they might not even get them.
We might get some common sense introduced into banking or government by then.
For example, John Moran, a former Secretary General of the Department of Finance, has been proposing a solution which would be perfect for you. A fund would buy the loans from the banks and accept long-term interest only. I have proposed a return to Mortgage Interest Supplement.
I don't know if these will get off the ground. But there is a good chance that there will be a solution of some sort before Bank of Ireland could get you through the courts.
So if you don't want mortgage to rent, then write to BoI telling them so and keep paying the €400 a month.
Brendan