Buy To Let Mortgage

[78focus]

Hi

I have a 2 bed investment property in Bury Manchester. I have a variable mortgage of 53K. With 10 years left. When interest rates dropped they put mine down to 2.5% but never dropped the monthly repayments. I am paying back £ 800 per month and I am only getting a rent now of £380 per month when it is rented. I cannot afford to keep paying this.

I tried to sell but had no interest. I have asked the bank for interest only but and they have said no. I have asked to extend the loan and they have said no. It looks like I will have to hand back the keys in the middle of this year and deal with the consequences. An investor I know said he would consider buying the mortgage from me but he would need a 20% discount on the mortgage. I was thinking of going back to the Bank (royal bank of scotland) and telling them this.

Any suggestion on what I should do ?

Best regards.

[porca misèria]

Smells of troll droppings here.

You're paying £9600/year. If you could realise £43400 from a sale, your debt would be down to one year's current payments, and you'd be selling a snap-it-up yield of 10%. One would've thought those kind of figures might just be feasible ...

[frenchy]

Hi

I have a 2 bed investment property in Bury Manchester. I have a variable mortgage of 53K. With 10 years left. When interest rates dropped they put mine down to 2.5% but never dropped the monthly repayments. I am paying back £ 800 per month and I am only getting a rent now of £380 per month when it is rented. I cannot afford to keep paying this.

I tried to sell but had no interest. I have asked the bank for interest only but and they have said no. I have asked to extend the loan and they have said no. It looks like I will have to hand back the keys in the middle of this year and deal with the consequences. An investor I know said he would consider buying the mortgage from me but he would need a 20% discount on the mortgage. I was thinking of going back to the Bank (royal bank of scotland) and telling them this.

Any suggestion on what I should do ?

Best regards.

are you for real? a 53K mortgage with 10yrs left at £800 per months is an interest rate of 14%... next time do the maths before making up a story, ok?

[78focus]

The bank has told me there is 10 years left, interest rates dropped but my monthly payments did not drop. So obviously I will have it payed off faster than 10 years. My arguments is why the bank will not drop my monthly payments when interest rates are down. If interest rates go up my payments stay the same. anyway I cannot afford it and have to do something.

[tim123]

The bank has told me there is 10 years left, interest rates dropped but my monthly payments did not drop. So obviously I will have it payed off faster than 10 years. My arguments is why the bank will not drop my monthly payments when interest rates are down. If interest rates go up my payments stay the same. anyway I cannot afford it and have to do something.

So tell the bank in writing that you can't afford it and then just pay what you can

They will never get a reposession if you are covering the interest

tim

[PbroAgent]

Hi

I have a 2 bed investment property in Bury Manchester. I have a variable mortgage of 53K. With 10 years left. When interest rates dropped they put mine down to 2.5% but never dropped the monthly repayments. I am paying back £ 800 per month and I am only getting a rent now of £380 per month when it is rented. I cannot afford to keep paying this.

I tried to sell but had no interest. I have asked the bank for interest only but and they have said no. I have asked to extend the loan and they have said no. It looks like I will have to hand back the keys in the middle of this year and deal with the consequences. An investor I know said he would consider buying the mortgage from me but he would need a 20% discount on the mortgage. I was thinking of going back to the Bank (royal bank of scotland) and telling them this.

Any suggestion on what I should do ?

Best regards.

What price were you selling for?

[78focus]

I was trying to sell it for 55K just trying clear the mortgage.

[PbroAgent]

If your asking price is that low, it's not selling and your mortgage is so high I would tend to agree with Tim's advice. Have you tried remortgaging with another lender on a longer term (although I imagine as you have no equity they wouldn't be interested)?