Mortgage Advice

Ladjacket

Hi,

Just after some advice at the minute on a mortgage issue.

A mortgage of €100,000 was taken out, and currently has 70k left on it, payments of 1,100 euro a month were reduced to 600 a month after consulting with the bank.

However a change in job circumstances with the recession has led to the payments only just being able to maintained at 600 a month even though the bank are looking to return to 1,100 a month.

Some advice I have got is to tell them I will pay 600 a month and no more, which would be paid at a stretch.

I am just looking for some help on this matter as I am not familiar with a lot of the procedures. Is there any way I can keep this at 600 a month?

Thanks

unclebill98

They will push for more money however if your circumstances have not improved it would not be fair to increase the repayments.

How long are you on reduced payments for?

The will go through your finances again and make a decision on that, if you are un happy with the outcome you can make a complaint.

Ladjacket

There are two incomes, one is a FAS worker income and the other is a home help income, which is on dodgy ground at the minute due to cut backs.

Circumstances have not improved at all, i.e. there have been no rises in income, the bills are all the same and more, it has been on reduced payments for almost two years now.

Kennie1

The original term on the mortgage must have been very short, i'd say 10 years perhaps. Can you go back to your bank and strech out the term to say another 20 years and this would leave you paying interest and principal of about €425 per month based on 70,000 thus freeing up €175 per month of your €600 budget and keeping you the right side of your credit history

Ladjacket

thanks for response, yeah it was for 10 years. however, stretching it out any longer is not a viable option due to the age of the holders.

Some people have been saying that if the banks are getting the 600 a month that they have to take it as the holders are prepared to make some form of payment.

phormium

The bank don't have to agree to it but they probably will. They will be looking at the long term sustainability of this plan, at some stage the payments are going to have to increase to clear the capital or some other solution must be found.

Kennie1

Agree with phormium, cant get blood out of a stone and all that. Really you are not in that bad of a situation at all and it will only take another 12.5 years to repay based on your current repayment amount but you would be well advised to maintain the mortgage protection cover even is this means paying a little less back to the bank as if either one of you were to prematurely die the other would be left in a truely impossible situation and all your hard work over these difficult years could be for nothing if the survivor cannot maintain repayments due to reduced income.

Ladjacket

yeah i understand, and i have been saying to myself that there are plenty of people in the country in a lot worse position.

thanks for all the replies