Want to sell rental property but bank require capital reduction on family home mortgage if we sell

[Brendan Burgess]

How many children do you have and what ages are they? 4 Children 11 \ 9 \ 6 \ 2
How many bedrooms in your present house : 3beds 960sq foot - no scope to extend either.

Hi Laura

I would imagine that there are many families of 6 living in 3 bedroom houses. Of course, extra space would be nice.

But given the very cheap accommodation you have due to your low tracker, I think you should continue with it for at least another 5 years. You will be living cheaply and will be able to build up your savings. The alternative is a more space, but a very expensive mortgage.

I would suggest that you let ptsb know that that you are staying put and if they want to get rid of the cheap tracker on the investment property, you are prepared to sell it, but you are not prepared to pay down your home loan.

And, of course, stop overpaying your tracker mortgage.

Brendan

 

[Bronte]

.

89% is close to reckless lending.

Sorry I'm not agreeing with that statement. I think 90% is fine. Most people I ever knew got 90% (I'm not talking about celtic tiger madness)

But neither you or 44B answered how the bank decides how much she should repay out of her sale.

And what would happen if there was zero equity, the bank couldn't ask for anything then could they.

Sure if her LTV is so bad why arentn't they insisting she make overpayments (I realise she is but that is not my point)

Anyway OP would want to be sure they can force her, I'd like to see the contract clause that allows this.

 

[Bronte]

But given the very cheap accommodation you have due to your low tracker, I think you should continue with it for at least another 5 years. You will be living cheaply and will be able to build up your savings. The alternative is a more space, but a very expensive mortgage.

I would suggest that you let ptsb know that that you are staying put and if they want to get rid of the cheap tracker on the investment property, you are prepared to sell it, but you are not prepared to pay down your home loan.

Another disagreement (tried to put in smilie but it's not working) I think life is for living and family life is very important, she won't need a big house when they are older, she needs it now. If she has the money she should go for it.

But I do agree with your 'tactics' with PTSB on selling, it might work.

 

[Brendan Burgess]

Sure if her LTV is so bad why arentn't they insisting she make overpayments (I realise she is but that is not my point)

Hi Bronte

She has a contract with permanent tsb.

Neither she nor ptsb can insist on changing that contract.

Either can ask the other side to vary the terms, but the other side is under no obligation to agree to vary the terms.

Brendan

 

[Brendan Burgess]

Another disagreement ...I think life is for living and family life is very important, she won't need a big house when they are older, she needs it now. If she has the money she should go for it.

We are not really in disagreement on this principle. I believe money is to facilitate living, not vice versa. I am just not sure that they need it now. If they have the money, by all means. But money seems to be a bit tight, so I would prefer to live in tighter accommodation and have money, than have a bit more space and be tight for money.

Brendan