ptsb Buy to let mortgage review after 12 years

[George12]

I have one BTL and one former home mortgage which they know is rented out but are happy to leave that one as it is (a high tracker margin interest and capital mortgage). There are many people who use their rental portfolio to subsidise their personal expenditure. I do not do this, in fact I am subsidising the properties so it is not fair to generalise! I am relatively young and see these as a pension fund of sorts. I am hopeful that at some stage over the next 25 years they will increase in value and I would be happy to sell one and keep the other so it should pan out. My current home will be paid off in 4 years and at that point I could afford to pay more off the BTL. My difficulty with PTSB is not their request for payment but more their refusal to think outside the box - surely getting half of what they want as an interim measure is better than nothing especially when the property is in negative equity? In term what they wanted it was 75% LTV - basically they wanted the negative equity to be taken care of plus a buffer.

 

[Isobel]

Should you not have the capacity to repay the mortgages then? A viable business should have the ability to repay its debts or have a plan in place to liquidate some of the assets to cover debts as they mature.

If rents do not cover capital, it seems like these are not viable properties?

I have several other assets mortgage free to off load should I need to clear any shortfall.. I don’t see that happening as portfolio is working well .. and in positive equity .. I just want to keep the interest only as long as possible .. we of course have back up plans ..

 

[Bayview 2019]

Your post is really interesting because PTSB would also not allow me to pay off my btl with a little extra years ago I even took a complaint against them that was in 2010 then years later they wanted the capital plus interest which I couldn’t afford now I got a letter from pepper to say my btl tracker was sold by Ptsb to them

 

[George12]

Your post is really interesting because PTSB would also not allow me to pay off my btl with a little extra years ago I even took a complaint against them that was in 2010 then years later they wanted the capital plus interest which I couldn’t afford now I got a letter from pepper to say my btl tracker was sold by Ptsb to them

Hi Bayview. They continue to ignore the fact that I offered to pay capital years ago. I don’t have the appetite to bring a case to the Ombudsman because I spent 8 years fighting a tracker case and it wasn’t an altogether satisfactory experience. They still want no more than 75% of the value of the house to be interest only and it took more than a year for them to accept that the current interest amount should go down if some capital is being repaid. No mention of being sold to Pepper yet.

 

[Glenalua8]

Some advice please.
I'm after getting a review request from the bank on an interest only BTL mortgage i got many years ago, we are half way through the term approx.
Firstly i wasn't expecting to get this but they want to offer to move me to capital payments or see what my plan is to pay if off when the time comes,
I have assets to cover the mortgage but they send me a form to say its our primary residence (we are currently living in the property but plan to rent it out again soon)
I'm suspicious that if I sign that form that we will lose the BTL Interest only tracker mortgage, is there a period of time i can live in my btl without having to change the mortgage?
Has anyone any other advice as to how to proceed.

Hi just read your post. I’m in a similar position, I am living in the buy to let property, the property had been rented out but due to a change in family circumstances I am now living in the property. I’ve been asked for valuations of the property or else being moved to capital and interest, which doesn’t suit me currently, I’d wish to remain interest only. How did it work out for you with ptsb, did you disclose you were living in the property and if so what has now happened. Many thanks for your help, v worried about all this.

 

[Glenalua8]

Hi Bayview. They continue to ignore the fact that I offered to pay capital years ago. I don’t have the appetite to bring a case to the Ombudsman because I spent 8 years fighting a tracker case and it wasn’t an altogether satisfactory experience. They still want no more than 75% of the value of the house to be interest only and it took more than a year for them to accept that the current interest amount should go down if some capital is being repaid. No mention of being sold to Pepper yet.

Just to add some info, I spoke with ptsb and just to confirm they mentioned their underwriting criteria requires 75% loan to value rate. So if you owe 500k I believe to satisfy their underwriting they would be looking for the property to be worth around 670k (ballpark not great at maths). Would be interested to hear from anyone as to how they are getting on with this whole process. Any info welcome.

 

[George12]

Just to add some info, I spoke with ptsb and just to confirm they mentioned their underwriting criteria requires 75% loan to value rate. So if you owe 500k I believe to satisfy their underwriting they would be looking for the property to be worth around 670k (ballpark not great at maths). Would be interested to hear from anyone as to how they are getting on with this whole process. Any info welcome.

My discussions went on for about 18 months in the end and I stayed on interest only during that period. They kept making mistakes with the calculations and months would go by. In the end I got a valuation which showed that the house was still in negative equity. They will only allow me to stay interest only on 75% of the current value which sounds like the same as what they told you. Luckily the house did go up in value over the course of the 18 months so the amount was not as large in the end as it was initially - still it’s costing me about €600 extra a month because the mortgage only has 11 years to run.

 

[Glenalua8]

My discussions went on for about 18 months in the end and I stayed on interest only during that period. They kept making mistakes with the calculations and months would go by. In the end I got a valuation which showed that the house was still in negative equity. They will only allow me to stay interest only on 75% of the current value which sounds like the same as what they told you. Luckily the house did go up in value over the course of the 18 months so the amount was not as large in the end as it was initially - still it’s costing me about €600 extra a month because the mortgage only has 11 years to run.