davidcoleman99
Registered User
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AIB still have me on a buy to let mortgage on a house that was sold 8 years ago. That was as a result of selling my buy to let house with 30k negative equity. My questions are:
Here’s the supporting info! 8 years ago I sold my buy to let house which had 30k negative equity. I asked the bank to top up my residential mortgage to the value of the negative equity – meaning I would have a single mortgage for my single house (our home). And that would have remained in positive equity even if we had of moved over the buy to let negative equity. Adding the negative equity would not have impacted my LTV marginally only - LTV would have only gone up 1 level.
They would not accept it going onto my residential mortgage, though originally they gave me a quote for that. Then said all they would accept was putting me on a 10 year fixed interest rate at the buy to let rate, which is now 4.85% (ends Dec 2021). Their rationale (over the phone only and wasn’t recorded in writing) was that they had done their profit and loss on the mortgage based on the buy to let rate. Not surprising little of this is recorded in email as they called me a lot to discuss.
After a year I contacted them again asking them reconsider having 2 mortgages, but got the same answer. This was the early days of people trying to sell houses with negative equity. It felt very much to me like they were working all this out as I was selling the house.
This week, I got their standard letter all AIB customers get yearly stating there is ‘no other available rate that could provide savings to you.’ That makes no sense to me from what I’ve covered above!
Both my home and the buy to let were, and remain, with AIB on variable mortgages - has never been fixed. My resident mortgage is 2.75%, 20 year term (ends 2029).
Thanks for the help.
- am I not entitled to have been on allowed to top up my resident mortgage to the value of the negative equity and then the buy to let mortgage would have been cancelled? AIB would not agree to that at the time, nor a year later when I asked again
- if so, am I entitled to a rebate for the higher interest I’ve been paying for 8 years? I’m hoping I am
- and how would I go about that?
Here’s the supporting info! 8 years ago I sold my buy to let house which had 30k negative equity. I asked the bank to top up my residential mortgage to the value of the negative equity – meaning I would have a single mortgage for my single house (our home). And that would have remained in positive equity even if we had of moved over the buy to let negative equity. Adding the negative equity would not have impacted my LTV marginally only - LTV would have only gone up 1 level.
They would not accept it going onto my residential mortgage, though originally they gave me a quote for that. Then said all they would accept was putting me on a 10 year fixed interest rate at the buy to let rate, which is now 4.85% (ends Dec 2021). Their rationale (over the phone only and wasn’t recorded in writing) was that they had done their profit and loss on the mortgage based on the buy to let rate. Not surprising little of this is recorded in email as they called me a lot to discuss.
After a year I contacted them again asking them reconsider having 2 mortgages, but got the same answer. This was the early days of people trying to sell houses with negative equity. It felt very much to me like they were working all this out as I was selling the house.
This week, I got their standard letter all AIB customers get yearly stating there is ‘no other available rate that could provide savings to you.’ That makes no sense to me from what I’ve covered above!
Both my home and the buy to let were, and remain, with AIB on variable mortgages - has never been fixed. My resident mortgage is 2.75%, 20 year term (ends 2029).
Thanks for the help.