Vulture fund have offered me a discount to settle a buy to let in Negative Equity

cremeegg said:
Should I stop paying the mortgage and see what happens?
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It's likely that the rental income is well ahead of the interest cost, so probably not.

If the lender knows that you have other assets, they probably won't do a deal.

And, of course, you will wreck your credit record, if that is important to you.

Brendan
 
Brendan Burgess said:
It's likely that the rental income is well ahead of the interest cost, so probably not.

If the lender knows that you have other assets, they probably won't do a deal.

And, of course, you will wreck your credit record, if that is important to you.

Brendan
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The rental income is ahead of the interest cost, but why is that relevant, I am in business to make a profit.

I dont have other assets that the lender could easily access. I have other property but it is mostly mortgaged to other lenders.

The damage to my credit record is a consideration, but I am unlikely to need any significant future credit.
 
cremeegg said:
The rental income is ahead of the interest cost, but why is that relevant, I am in business to make a profit.
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Eh, that is what a profit is!

When the income exceeds the costs.

Particularly as you are in deep negative equity, this is a real profit.



Brendan
 
Brendan Burgess said:
Eh, that is what a profit is!

When the income exceeds the costs.

Particularly as you are in deep negative equity, this is a real profit.



Brendan
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I don't understand the point here. You asked if the rental income is ahead of the interest. It is. I don't understand how that is that relevant ?
 
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