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Renegotiating your mortgage - has anyone actually doe it?

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  • 27-04-2011 12:53pm
    #1
    OnlyWayIsUp
    Registered Users Posts: 222 ✭✭


    Hi,

    Has anyone here actually renegotiated their mortgage with their provider? What was the outcome? Was it difficult?

    I'm in a situation where I need go to my provider very soon but I'm very nervous about it. My wages have taken quite a decent hit in the last while (down about 20%) and my mortgage is going up. I'm not looking for debt forgiveness but just to reduce my monthly payments to a much more manageable level, to achieve this I'd need to pay about 25% less a month and I'm hoping that my provider (AIB) will let me do this and add on years to the end of the mortgage (even though it already takes me up to retirement age).

    Now I know there are articles in the paper which infer that banks are happy to talk to folks in difficulty and come to arrangements but has anyone actually done it? If you don't want to post it here in public on this thread then feel free to pm me. I'm not looking for any info other than generalities of what agreement you or your "friend" came to with the bank.

    Hopefully someone can give me some information - thanks.

    Note to Mods - I think there's a rule on boards that you're not allowed post the same query on two different forums. I've tried to get info on this in "Accomodation and Property" but have been unable to so I'm hoping to get some info here. If one of the threads needs to be closed please would it be possible to leave this one open and close the other one in the other forum - thanks.


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    #2
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    Your lender will require you to complete an 'income and expenditure' form of some sort, if that shows reasonable living expenses and an inability to pay the present mortgage repayments then you may get some option.s

    But, if it shows you want reduced mortgage payments so that you can pay other debts, especially to lenders other than the one the mortgage is with, then you will get a different reply. If you have other unsecured debt then you should attempt to reschedule that first as that is what your mortgage lender will request, as roof over your head etc needs to be priority.

    Also if your outgoings show something which the lender considers unreasonable, e.g. most expensive Sky package or weekly manicure costs (has happened!) then they will ask you to rethink your outgoings first.

    Genuine cases will be facilitated especially in the short term, if it is going to be a long term problem then who knows what the solution or end results will be.


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    #3
    OnlyWayIsUp
    Registered Users Posts: 222 ✭✭OnlyWayIsUp


    Cheers phormium.

    I don't know what to do now, I really thought that far more people would have responded to this thread given the numbers that the media tell us have renegotiated their mortgages.

    Is it just anecdotal that people are managing to renegotiate their mortgages or is it actually happening?


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    #4
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    I don't know why you haven't replies either but it is definitely happening big time. If you need to do it then approach your bank but have all your figures prepared.


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    #5
    iPearly
    Registered Users Posts: 246 ✭✭iPearly


    They won't renegotiate it. They will also not extend your loan if you're up to the retirement age. They might let you pay interest only for 6 months which will actually increase your payments each month for the remainder of the loan. Customers are screwed one way or another. BANKS ARE DOING WHATEVER THEY WANT -EVEN THOUGH WE OWN THEM?


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