I think this could well be something that will put feet on the streets. No-one would be able to afford these kind of repayments:-
http://www.tribune.ie/business/news/...age-borrowers/Permanent TSB is plotting the first controversial assault by banks on loss-making tracker mortgages by resetting the monthly payments it charges investment property borrowers, the Sunday Tribune has learned.
From this autumn, thousands of small landlords and holiday home-owners face paying steeply higher monthly payments and higher interest rates.
Other banks will likely follow suit if the leading mortgage lender wins the Financial Regulator's approval for the move.
The bank briefed its most senior managers last Tuesday on plans to renegotiate with residential investment property customers who borrowed money at so-called tracker rates that are linked to official European Central Bank rates.
Dowling calculates that an investor who borrowed €500,000 and is currently paying €730 in interest per month will now face a new monthly bill of €2,470 in interest and capital repayments.
The bank has apparently sought legal advice as to whether or not it can renegotiate with tracker mortgage customers by triggering review clauses in the loan contracts.