Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Advice re: Reducing Monthly Mortgage Repayment

Options
  • 24-07-2011 9:40pm
    #1
    aurora1
    Closed Accounts Posts: 1 ✭


    Hi, I am going to be taking unpaid maternity leave soon and when that is finished, I may decide to stay at home and not return to work at all.

    Our remaining mortgage is 120K on a tracker mortgage with ulster bank. I would like to go to the bank about reducing our monthly repayments from aprox 1200/month to 500/month. This would push our term out to 25 years instead of 10 years.

    Do you think the bank would agree to this.....hubbie (age 36) is on 26K/year plus subsistance (which they won't take into consideration I believe). We have no debts and have excellent credit history plus savings. We have gone through the figures in detail and know personally that we can afford it. But would I need to convince the bank?

    I mean they can't tell me I have to stay in work, right!?? Just want to have my research done before I go to see them.........any opinions/advice out there?

    Thanks:)


Comments

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


    No of course they can't make you continue working but they certainly can refuse to extend the term of your loan. You may also find that it would be considered as applying for a new loan and you might lose the tracker rate, that would not be a good plan. There are rules there to prevent them doing this for customers in trouble financially but realistically you are not in trouble now, you just want to change your lifestyle (not commenting on your decision merely saying how the bank will view it!) If you were made redundant it would be viewed differently. Also bear in mind you will end up paying way more in interest if you extend the term, you will also have to change your life insurance for the new longer term which will be more expensive.

    In the present climate unless your husbands job is extremely secure I would not be inclined to give up a job, yes its no fun working when you have kids but you might get the mortgage cleared sooner if you do. Can you reduce your working hours as a compromise?


Advertisement