Split Mortgage Outcome

C

Commercial

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I have just been offered a split mortgage by my bank. Owe €370k, split €182k performing with the balance parked for 5 years. (Value of the property is €182k)
I am not getting a clear answer from the bank what will happen once year 5 comes.
Does anyone know more than that or is there something there, which states that if your financial situation has not improved they write off the parked portion. My concern is that if my financial situation has not improved, but the value of my property has increased, so that there is no negative equity, will they ask me to sell and move?
 
Commercial said:
My concern is that if my financial situation has not improved, but the value of my property has increased, so that there is no negative equity, will they ask me to sell and move?
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And that would be a logical viewpoint from the banks side. They are currently being 'forced' into these split mortgages and other 'solutions'. This in my opinion is for a number of reasons, not a good time to sell, don't want to flood the market, don't want the publicity of evicting families, and it's a legal nightmare evicting, plus it's against the current political mood, and they are bound to 'pretend' to be acting in fairness to the customer by the fact that currently bankers are the worlds worst and the politicians bailed them out.

What exactly has the bank said will happen? Which bank is it. Are you negotiation on your own.
 
Bronte, it is AIB. I have done the negotations myself.
The bank won't commit to what will happen. I don't think the staff on the ground are sure as to what will happen either and I think its a case of "we'll deal with that in 5 years"! Just brush it under the carpet for now as you have stated
 
The reason I asked which bank is hopefully someone in the same situation with AIB or one of those experts negotiating with them might give you an idea.

Anyway to help you, look at it like this, if you get to stay in your home for 5 years how much will that cost you? How much would rent cost you. If you lose the house in 5 years time that would be a bummer, but you get 5 years of breathing space, and your circumstances might improve.

If however you would be better off surrendering/going insolvent now than you must consider this also.

Personally I'd be very wary of banks being in total control, but depending on the figures it might be ok to stay for 5 years.
 
I'm not worried at all. I was just wondering did anyone have an idea of the outcome.

I negotaite with banks, but I haven't done anything on a split mortgage basis as I deal primarily with commercial debt. I was interested to see if anyone had views on 5 years time for my own personal benefit.
Thanks for your replies Bronte
 
Sorry Commercial I didn't realise you are negotiating for someone. Odd then that AIB is now putting in this 5 year limit after the fanfare awhile back. Is your client likely to come into an inheritance or somesuch.
 
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