Switching Residential Mortgage to Buy to let

Thrugelmir

francy555 wrote: »

Perhaps i'm looking at this in a simplistic way - but if they repocessed the house against my wishes, with never missing a repayment that i would have good grounds to just walk away?

Nothing to do with your wishes. If you are in breach of your mortgage terms and conditions. Then the lender has legal rights as to restitution. That would include recovering the shortfall from other assets that you own.

Before walking the plank. Take time to reflect on your intentions. As may cost you dearly.

francy555

Thanks for the info regarding house insurance - i never looked at it from that angle.

"I hate to be the bearer of bad news but you aren't the only one in Northern Ireland and the Republic of Ireland that's stuck in their current location"

This is what annoys me - everyone knows that the market has changed beyond recognition from the boom times, yet the banks seem to be totally disregarding peoples changes in circumstance in the 7 years since the housing bubble burst. Why our politicans aren't forcing the banks to offer products that would enable people to move on is beyond me!


Selling the second property to cover the -ve equity is a non runner

You say above that you "meet & exceed all the eligibility criteria for a self mortgage that would build your new house". How do you know this?- a two hour discussion/debate with the mortgage arranger in our local branch - you don't think i got the info from the online calculators do you??

As for how they deal with the info - they have annoyed me that much that i won't be asking them for permission. i'll be telling them the reality of the situation and if they wish to retain me as a customer( i have other accounts with them- business and personal) consent to let will have to be forthcoming.

Thrugelmir

francy555 wrote: »

Why our politicans aren't forcing the banks to offer products that would enable people to move on is beyond me!

You've bought a second property. That was your decision. So little point in throwing mud elsewhere. Responsibility starts at a personal level.

marathonic

francy555 wrote: »

a two hour discussion/debate with the mortgage arranger in our local branch - you don't think i got the info from the online calculators do you??

As for how they deal with the info - they have annoyed me that much that i won't be asking them for permission. i'll be telling them the reality of the situation and if they wish to retain me as a customer( i have other accounts with them- business and personal) consent to let will have to be forthcoming.

I don't understand why there would be a 2-hour discussion/debate with the mortgage advisor unless they were telling you that you DIDN'T meet, or exceed, the criteria.

Regarding your other accounts, whilst the bank does wish to keep them, they don't want to keep them to the extent that they're going to break normal protocol on your existing mortgage and give you CTL just to keep the other accounts.

The reality of the situation, and the bank knows this, is that no other lender will allow you to draw down funds for a new property unless you meet their criteria, which you obviously don't with Ulster Bank. However, more importantly, if you meet another banks criteria, they won't let you draw down funds without the CTL from Ulster Bank.

Ulster Bank know that you won't get funds from another bank without their CTL so don't really have an option but to stay where you are. To do anything else would leave you in an even more risky position with regards to exposure to property prices so it's in Ulster Banks interest not to offer CTL so as to ensure that you don't take out further borrowings whilst already in negative equity. Do you not understand that Ulster Bank are doing the sensible thing here? Can you imagine the backlash in 2 years time if they offered you another mortgage and property prices fell another 30%? How annoyed would you be with them then? Would you then be looking for politicians to bail you out of the decision you are trying to make today?