Trapped in One Bedroom House

OMD

Sugarcake wrote: »

I didnt think they would allow you to do this? You could be totally right I just never knew. An extra €500 per month at the moment would be massive to us. I know our savings would be literally wiped out but we could start again. That has opened my eyes, thank you!

Sounds possible. You owe them 9,000 but they owe you 7,000 your net bill is only 2000 which you could pay off in 4 months.


Plus are you sure about your mortgage costs. You say you are paying €1,000 a month on a tracker over 35 years. Sounds wrong. What rate are you on?

Sugarcake

OMD wrote: »

Sounds possible. You owe them 9,000 but they owe you 7,000 your net bill is only 2000 which you could pay off in 4 months.


Plus are you sure about your mortgage costs. You say you are paying €1,000 a month on a tracker over 35 years. Sounds wrong. What rate are you on?

It is actually closer to €900, and this actually includes our Home Insurance monthly repayment. I am not sure of the Rate but it is Tracker so this is normally the ECB Rate plus PTSB Rate. We also get TRS and I cant remember again but this is worth about €150 per month? So our Repayments incl. the Insurance are about €900.

I am going to look at my CU Statements when I get home, but I only got one last month and it was not much over €9k with I think €6900 savings. The thoughts that this might work has put a smile on my face today

OMD

Sugarcake wrote: »

It is actually closer to €900, and this actually includes our Home Insurance monthly repayment. I am not sure of the Rate but it is Tracker so this is normally the ECB Rate plus PTSB Rate. We also get TRS and I cant remember again but this is worth about €150 per month?

I am going to look at my CU Statements when I get home, but I only got one last month and it was not much over €9k with I think €6900 savings. The thoughts that this might work has put a smile on my face today

Look at changing you house insurance then. You can insure with anyone and insuring with the bank themselves is rarely (probably never) the cheapest way. A rate of 1% over ECB (which was a very common rate) over 35 years means you should be repaying €750 a month before TRS. €900, even including insurance sounds high.

• Ensure you are getting TRS
• Shop around on Internet for best value home insurance
• Shop around for best life assurance quotes. I can PM you a good broker that will give a seriously reduced rate for the first year. Unsure if I'm allowed post it here

Changing these could easily save you another €100 a month if not more. My house is 4 bed roomed and my insurance is only €35 a month

Sugarcake

Please PM me, that would be great. I am thinking it is about 2%-3% plus ECB but definitely not as low as 1%. I will check it out. Thanks for the reply.

OMD

Sugarcake wrote: »

Please PM me, that would be great. I am thinking it is about 2%-3% plus ECB but definitely not as low as 1%. I will check it out. Thanks for the reply.

PM sent

Ray Palmer

Fri.Day wrote: »

Just reading through this thread I was thinking a little outside the box!

You said you`ve plenty of space around the house so could yoe see your way to rent the house around €400 per month and live rentfree in a mobile home/chalet out the back???
Something like this?
http://www.donedeal.ie/mobilehomes-for-sale/mobile-home/5223763
Pwurple`s suggestions re mortgage top ups and your ECCE year coming up will give you a bit of a breather.
It could be as short term as you need as you said 3 years and ye`ll have paid off old loans.
Hope that helps

You need planning permission to put them any where. The councils are not keen on them either especially for a long term use. Not many people will rent a place with the LL in the garden.

They can be very nice inside. A friend had one with two bed room and one was en-suit.

jlm29

Sugarcake wrote: »

It is actually closer to €900, and this actually includes our Home Insurance monthly repayment. I am not sure of the Rate but it is Tracker so this is normally the ECB Rate plus PTSB Rate. We also get TRS and I cant remember again but this is worth about €150 per month? So our Repayments incl. the Insurance are about €900.

I am going to look at my CU Statements when I get home, but I only got one last month and it was not much over €9k with I think €6900 savings. The thoughts that this might work has put a smile on my face today

I'm thrilled that I've managed to put a smile on your face!! I'm sure that its correct- once your loan balance drops below your share balance you can clear it. It would be such a weight off your minds. And you'd also pay much less interest over the next few years too. Savings all round!

ams

For DIY inspiration check out the studio apartments featured on Apartment Therapy:

http://www.apartmenttherapy.com/categories/studio

Its amazing what you can do with a little inventiveness

fed up sick and tired

Sugarcake wrote: »

Thank you for this information. We can afford to pay our mortgage, yes it is a struggle and yes we are left with virtually nothing and we are also both employed. Surely I couldn't just decide I don't want this house that I agreed to buy and turn my back on it and the debt? This Country is already a mess without people doing this?

Get real. By any common sense definition, you can NOT afford your mortgage. By common sense, I mean that a) after paying it you have ''virtually nothing''; and b) your marriage,which is I assume vastly more important than a house, is suffering.

You can't afford it. That is your starting point.

Now go from there. You need to change your childish mindset about debt, and about morality. People like you are a gift to all the moneymen and conmen, the shills, the politicians.

The country is a mess whether or not you renege on this foolish debt. There are any number of moralising know-alls here and everywhere who will give you the standard line about paying your debts.

We all know that, we were all brought up the same. It's a reasonable and justifiable line, for sure, but there's too much of the condescending in it. The banks had a duty of care too, by the way.

Don't worry, there are plenty who will be sheep all their lives, even if you decide not to be one.

You have to decide what you priorities are. They are, or should be your husband and child. Put them first, and as selfishly as you feel you need to. Get on with your life and stop being so timid about a state, a country, and an economy that demonstrably doesn't give a damn about you and your family.

Get out of this country altogether if you can, if you both have valuable skills, and while you're young. Seriously.

What I am suggesting for you to do is not ''right''. But it is right for you. And considering where this country is headed over the next years, that is more important.

Now, of course, I'll be paying for this. I didn't buy at the top, didn't get sucked into the madness, I pay all my debts and have a reasonable/frugal/healthy lifestyle.

AS a total aside, but on the same subject... as I have a good number of relatives in Poland - I know of more than one case where happily married couples are bringing up 3- to 8 yr. olds in a one-bedroom flat. The child uses the bedroom and the parents have a sofa bed.

It's a perfectly acceptable and accepted arrangement. It's all about expectations. We in this country have gone too far away from knowing the difference between needs and wants, in the pursuit of ''lifestyle''.

You don't, for a few years yet, need a second bedroom. You just need to stop thinking that you do.

Good luck.

Sugarcake

fed up sick and tired wrote: »

Get real. By any common sense definition, you can NOT afford your mortgage. By common sense, I mean that a) after paying it you have ''virtually nothing''; and b) your marriage,which is I assume vastly more important than a house, is suffering.

You can't afford it. That is your starting point.

Now go from there. You need to change your childish mindset about debt, and about morality. People like you are a gift to all the moneymen and conmen, the shills, the politicians.

The country is a mess whether or not you renege on this foolish debt. There are any number of moralising know-alls here and everywhere who will give you the standard line about paying your debts.

We all know that, we were all brought up the same. It's a reasonable and justifiable line, for sure, but there's too much of the condescending in it. The banks had a duty of care too, by the way.

Don't worry, there are plenty who will be sheep all their lives, even if you decide not to be one.

You have to decide what you priorities are. They are, or should be your husband and child. Put them first, and as selfishly as you feel you need to. Get on with your life and stop being so timid about a state, a country, and an economy that demonstrably doesn't give a damn about you and your family.

Get out of this country altogether if you can, if you both have valuable skills, and while you're young. Seriously.

What I am suggesting for you to do is not ''right''. But it is right for you. And considering where this country is headed over the next years, that is more important.

Now, of course, I'll be paying for this. I didn't buy at the top, didn't get sucked into the madness, I pay all my debts and have a reasonable/frugal/healthy lifestyle.

AS a total aside, but on the same subject... as I have a good number of relatives in Poland - I know of more than one case where happily married couples are bringing up 3- to 8 yr. olds in a one-bedroom flat. The child uses the bedroom and the parents have a sofa bed.

It's a perfectly acceptable and accepted arrangement. It's all about expectations. We in this country have gone too far away from knowing the difference between needs and wants, in the pursuit of ''lifestyle''.

You don't, for a few years yet, need a second bedroom. You just need to stop thinking that you do.

Good luck.

My Husband and My Son are my priorities. I am not in this on my own, never have been, this is my husband and I together trying to sort out a mess we created and committed to. Yes we are able to make our mortgage repayments, we could easily turn our backs but at the end of the day we signed to make the repayments. We could say we can't afford to pay our mortgage but we can afford meals out every weekend, holidays, upgrade our car with the money we should be using to pay our mortgage we committed to. You can say I am a sheep if you want. I don't want to sit back and blame anyone for my situation, it's not me and I honestly believe with hard work and a goal in mind we are going to get where we want to be, we are just try to figure out now the best route to get there.

fed up sick and tired

Sugarcake wrote: »

.. but it is becoming more and more difficult... We cant borrow to extend as we got into arrears on loans etc so we are still struggling to pay them, after our Mortgage, Bills, Repayments, Childcare, food etc we literally have zero left. We are both pretty miserable at this stage, every day is such a struggle,
Our Home is our main struggle, the location we hate...
I wish I could close the door on the house and forget about it at this stage and he is the same, it causes every argument we have, we just feel so trapped there... We just have no quality of life at the moment. We don't spend stupidly, seldom go out or treat ourselves to ...

Those are parts of your op that stand out for me.

Only you can decide whether or not your belief in hard work will see you through, and whether or not that would be a Pyrrhic victory at the end of the day.

I wish you well.

Moonbeam

Could you maybe get a mobile home and put it on the site and use it for sleeping and the house for living until your situation improves?

LINE45

Sugarcake, you seem to have got loads of good advice from others, so I suggest that you and your husband should go through all the replies, and start making a plan, you have a lot of work to do it won't be easy but you will get there in the end and don't make any hasty decisions that you may regret. I wish you all the best and hope it works out.

Ray Palmer

fed up sick and tired wrote: »

Get real. By any common sense definition, you can NOT afford your mortgage. By common sense, I mean that a) after paying it you have ''virtually nothing''; and b) your marriage,which is I assume vastly more important than a house, is suffering.

.

What I don't think people understand about this "solution" is it pretty much means you will never buy a house and you are stuck renting for the rest of your life. Fine if you never wanted to buy but it is people who obviously wanted to buy that this advice is been given to.

Then of course the advice on how you weren't stupid and didn't fall for the property bubble. If you read the thread the OP already complained about those with superior attitudes. Talking about sheep when you should look at your own comments for being a member of another herd of "hindsighters".

Sugarcake

Ray Palmer wrote: »

What I don't think people understand about this "solution" is it pretty much means you will never buy a house and you are stuck renting for the rest of your life. Fine if you never wanted to buy but it is people who obviously wanted to buy that this advice is been given to.

Then of course the advice on how you weren't stupid and didn't fall for the property bubble. If you read the thread the OP already complained about those with superior attitudes. Talking about sheep when you should look at your own comments for being a member of another herd of "hindsighters".

Exactly Ray, we do want to own our home and don't want to end up renting for the rest of our lives. We have not been in the situation where we cant pay our mortgage so I don't see any reason why we should do this, it is not what we want. The idea of renting for a short period is fine but we like the security of our own home. I have had some eye opening responses on this, people have really helped which is what I was hoping for, I never thought for a second any of the responses would be plain and simple, we still have a long way to go from where we are but the solutions and advice offered by so many people have helped us see where we are headed.

StillWaters

Ray Palmer wrote: »

What I don't think people understand about this "solution" is it pretty much means you will never buy a house and you are stuck renting for the rest of your life. Fine if you never wanted to buy but it is people who obviously wanted to buy that this advice is been given to".

But home ownership has no benefits in this scenario. The OP is an a location she hates, with an unsuitable house that will be in NE for the next 15 years or thereabouts. I'd be off and aiming for a cash purchase in 10 years.

But she has made her choice.
I too wish you well OP.

Sugarcake

StillWaters wrote: »

But home ownership has no benefits in this scenario. The OP is an a location she hates, with an unsuitable house that will be in NE for the next 15 years or thereabouts. I'd be off and aiming for a cash purchase in 10 years.

But she has made her choice.
I too wish you well OP.

Thank you for the Well Wishes. What I am almost certain we are going to do now is use our savings in CU to clear down our loan, this should be possible in the next four months. My husband has already made some of the steps to start an extension but we should be able to actually afford this within a year without the CU Repayments. We cant and really don't want to borrow again if possible. The house will have more space which is what we would like. Then what we would look at doing in the next 3 Years hopefully is either selling or renting our home and moving closer to family. We have put a lot of blood, sweat, tears and money into that house to walk away now with nothing. We will also have the added benefit of the ECCE Year next year to help with Childcare Costs. When we put these plans in years, 3 years will fly by, we just need to work hard and stick to our goals to achieve them. Its the thought that "will we ever be able to" that scares me, now I feel like we have a plan and know what we are doing. It just makes sense to us. I know the area is not ideal but we can live with it and certainly have done, I felt negative and miserable about our home and money at the start of the week and although we don't want to be there forever 3 years is nothing if you look at the bigger picture

therunaround

I know damn all about building, but just on electrics in an extension, can a person just run an extension lead through the wall from the existing house and use a standing lamp rather than a ceiling light, and for plugging in a phone charger/ small appliances? Would this remove the cost of wiring and certificates?

fed up sick and tired

Ray Palmer wrote: »

What I don't think people understand about this "solution" is it pretty much means you will never buy a house and you are stuck renting for the rest of your life. Fine if you never wanted to buy but it is people who obviously wanted to buy that this advice is been given to.

Then of course the advice on how you weren't stupid and didn't fall for the property bubble. If you read the thread the OP already complained about those with superior attitudes. Talking about sheep when you should look at your own comments for being a member of another herd of "hindsighters".

If you think people don't understand my solution, don't see the implication of it, then I suggest they haven't done enough research before taking on a multi-decade financial commitment.

There are some superior attitudes underlying the idea of people being ''stuck renting'' too.

Whether they wanted to buy or not is irrelevant to the advice being given. The ''wanting to buy'' mentality is what has the OP in this situation, so I think I can justify a suggestion of moving away from that.

I didn't read the thread, I read the OP. Very carefully. I have no idea what you mean by ''hindsighters'', and I suspect neither do you.

I didn't intend a superior tone, I'm simply saying that I'm not unaware that the consequence of the OP taking my advice would be that people like myself will end up paying for it. And yet... Food for thought, isn't it ?

There was plenty of compelling ''foresight'' from at least 2005 that I'm aware of, and luckily (?) for me the non-economist, I digested some of that. But I always do my research.

Foresight, if you like.

Ray Palmer

fed up sick and tired wrote: »

I didn't read the thread, I read the OP. Very carefully. I have no idea what you mean by ''hindsighters'', and I suspect neither do you.
.

Well you should have read the thread before posting something that has already been clearly addressed. You should have read it before posting a second time too. Your view and opinion has been answered and already noted as not required.

fed up sick and tired

Ray Palmer wrote: »

Well you should have read the thread before posting something that has already been clearly addressed. You should have read it before posting a second time too. Your view and opinion has been answered and already noted as not required.

''Please advise me, but only tell me what I would like to hear''.

I think you can drop the Walter Raleigh stuff, now.

My suggestion may not be required here, but do bear in mind that people search threads for similar situations to their own. So the advice is still good, even if some easily ''head-recked'' people don't want to hear it. At least I haven't descended to telling anyone to f off.

Anyway I read the thread, and the story is even worse than I thought.

The OP a) doesn't know for sure the term of the mortgage, or the rate; and b) doesn't know that once shares match loans, the CU will allow you to offset the one with the other. Actually, the CU will possibly advise on having a minimum in the a/c but that's splitting hairs at this point.

I mean, what the hell ? ? ? That is financial illiteracy.

pwurple

Yes, it is a level of financial illiteracy.... Not at all uncommon, plenty of people have had no exposure either formally or informally to any kind of financial training. It's optional at every level in our education system, and I would say many people's parents were also unexposed.

Which is why they are asking for help and advice.

Are they not permitted to ask questions and try to figure it out?


Perhaps you could assist with some knowledge transfer instead of throwing out insults and denegration?

fed up sick and tired

pwurple wrote: »

Yes, it is a level of financial illiteracy.... Not at all uncommon, plenty of people have had no exposure either formally or informally to any kind of financial training. It's optional at every level in our education system, and I would say many people's parents were also unexposed.

Which is why they are asking for help and advice.

Are they not permitted to ask questions and try to figure it out?


Perhaps you could assist with some knowledge transfer instead of throwing out insults and denegration?

I gave help and advice.

Since you agree that it is financial illiteracy, then you are insulting and denigrating no less than I am. Not that I intended to be so.

If you read less selectively, you will see that people are also denigrated as ''suppressed economists'' who should just ''f*** off'', when they give help and advice that others don't want to hear.

But that is the nature of help and advice, and a person who doesn't have the sense to know the rate they're paying, the term of the contract, or the way one of the most simple aspects of how a credit union works (!)...

is surely a dupe to herd mentality that says that you simply must pay back three, four, or five times back what your ''asset'' will ever be worth. It is a very valuable exercise then to offer an alternative. I'm not making anybody do anything.

Plenty of people have had no exposure either formally or informally to any kind of financial training, that is very true. But a very significant number of them do have a modicum of cop on, and that has made all the difference, it seems.

beeno67

fed up sick and tired wrote: »

I gave help and advice.

Since you agree that it is financial illiteracy, then you are insulting and denigrating no less than I am. Not that I intended to be so.

If you read less selectively, you will see that people are also denigrated as ''suppressed economists'' who should just ''f*** off'', when they give help and advice that others don't want to hear.

But that is the nature of help and advice, and a person who doesn't have the sense to know the rate they're paying, the term of the contract, or the way one of the most simple aspects of how a credit union works (!)...

is surely a dupe to herd mentality that says that you simply must pay back three, four, or five times back what your ''asset'' will ever be worth. It is a very valuable exercise then to offer an alternative. I'm not making anybody do anything.

Plenty of people have had no exposure either formally or informally to any kind of financial training, that is very true. But a very significant number of them do have a modicum of cop on, and that has made all the difference, it seems.

Your solution was to get out of the country.

One of the OPs problem was
our" Home is our main struggle, the location we hate and spend most of the time on the road, we are about half an hour away from family. If we lived closer to family life would also be so much easier for our child"


Not really a great solution. Problem is living a half hour from family. Your solution, move further away

Kettleson

This is the real problem with Boards.ie

ie: a person is genuinely seeking positive advice and guidance and seems to be benefitting from it by receiving some very well considered and helpful opinions. Boards absolutely rocks when that happens!

And then there are others that use the thread to air their own generalisations and in doing so direct their seeming frustration re: our economic situation at one person. So, so annoying and unnecessary.

Surely there is a more suitable Forum for such general economic discussion.

fed up sick and tired

beeno67 wrote: »

Your solution was to get out of the country.

One of the OPs problem was
our" Home is our main struggle, the location we hate and spend most of the time on the road, we are about half an hour away from family. If we lived closer to family life would also be so much easier for our child"


Not really a great solution. Problem is living a half hour from family. Your solution, move further away

I wouldn't say that as a problem it particularly stands out amongst all this...

.. but it is becoming more and more difficult... We cant borrow to extend as we got into arrears on loans etc so we are still struggling to pay them, after our Mortgage, Bills, Repayments, Childcare, food etc we literally have zero left. We are both pretty miserable at this stage, every day is such a struggle,
Our Home is our main struggle, the location we hate...
I wish I could close the door on the house and forget about it at this stage and he is the same, it causes every argument we have, we just feel so trapped there... We just have no quality of life at the moment. We don't spend stupidly, seldom go out or treat ourselves to ...

Here's another piece of advice - if you remove this debt noose from your neck now, and take some pain (but no more than you're facing anyway), you'll probably be able to save enough to buy a similar or better property for cash in a few years.

fed up sick and tired

Kettleson wrote: »

This is the real problem with Boards.ie

ie: a person is genuinely seeking positive advice and guidance and seems to be benefitting from it by receiving some very well considered and helpful opinions. Boards absolutely rocks when that happens!

And then there are others that use the thread to air their own generalisations and in doing so direct their seeming frustration re: our economic situation at one person. So, so annoying and unnecessary.

Surely there is a more suitable Forum for such general economic discussion.

People who clearly are in over their heads, ''But surely I could never do x, y, or z...''

are being offered options and alternatives that they have clearly not considered, may not see as viable, but may yet come to do so.

Perfectly valid.

wexie

Kettleson wrote: »

This is the real problem with Boards.ie

ie: a person is genuinely seeking positive advice and guidance and seems to be benefitting from it by receiving some very well considered and helpful opinions. Boards absolutely rocks when that happens!

This times lots and lots.

There are plenty of interesting threads for hypothetical discussions etc. But it always gives me a warm and fuzzy feeling when you see a thread like this where someone is genuinely getting good help and 'the boards community' has made someone feel better.

Electric Sheep

pwurple wrote: »

Yes, it is a level of financial illiteracy.... Not at all uncommon, plenty of people have had no exposure either formally or informally to any kind of financial training. It's optional at every level in our education system, and I would say many people's parents were also unexposed.

Which is why they are asking for help and advice.

Are they not permitted to ask questions and try to figure it out?


Perhaps you could assist with some knowledge transfer instead of throwing out insults and denegration?

I think the problem in Ireland is that so many people did not ask the questions and try to figure it out BEFORE they took out a mortgage. That is the time for the figuring and questioning - before you make what is probably going to be the biggest financial commitment of your life!

OP, I hope you are able to work out a way to improve things. But think things through very carefully before you take action, whatever action you choose to take.

Kettleson

fed up sick and tired wrote: »

People who clearly are in over their heads, ''But surely I could never do x, y, or z...''

are being offered options and alternatives that they have clearly not considered, may not see as viable, but may yet come to do so.

Perfectly valid.

I agreed with a lot of what you had said generally, but it did not apply to the request of the OP for specific advice.

How about "have you considered emigrating and handing the keys to the bank?" and take it from there.

The tone of some posts are about hand-holding, others dish out a few well aimed slaps.

fed up sick and tired

Kettleson wrote: »

I agreed with a lot of what you had said generally, but it did not apply to the request of the OP for specific advice.

How about "have you considered emigrating and handing the keys to the bank?" and take it from there.

The tone of some posts are about hand-holding, others dish out a few well aimed slaps.

Point taken, and thank you.

Sugarcake

We certainly are thinking everything through. We know the mistake we've made and only have ourselves to blame. Of course I know the term of my mortgage and the rates, I just didn't have the exact figures to hand and didn't want to give incorrect information. We are doing well even the fact we are on a Tracker. Yes I didn't realise we could do this with the CU I always thought you had to leave your shares untouched for the term of the loan. I am not trying to make excuses for mistakes I've made but I can't dwell either.

I am really delighted with the great advice I have got since I posted, some great advice that has already helped so much and thank you everyone who has contributed with such positive advice. Walking away won't ever be an option.

December2012

Sugarcake I can't give you any advice on finances or building.

But what I can tell you is that disagreements over money and communication can be terminal to a relationship.

So try as much as you can for you and your husband to communicate, communicate, communicate.

Enjoy the things that are free, take comfort in what you can - eg my friends 5 year old has a lovely bedroom of his own, yet every morning when she wakes up the 5 year old asleep in their bed beside them! Your son may have been the same anyway!

Make each other smile and laugh every day.

Think of the future, one year away, five years away, 10 years away.

Think of how far you've come.

Try to look on this as a team project - a "me and you can do it together baby!" Kind of thing.

Enjoy the fact that you are going to be more financially savvy in the future and won't be in this mess again.

Good luck.

digzy

Hi op,

Just read the thread. I can really empathise with your situation. Must echo what's been said already re keeping positive.
I know it doesn't appear so but there are some positives here which you should try and focus on.
You have a healthy family. There's a lot to be said for having that. I was listening to a family on radio last week whose daughter had the skin condition EB. Sounds like hell.
Secondly, ye're working which sets a great example to your child.
Thirdly, it sounds like you've a stand alone house. Look at the mess you'd be in if ye were in the 'semi-d" estate like so many-myself included- where the local authority nor builders finish the place off or the council don't own the adjacent house-yep, me again:rolleyes:- so that's very important rearing a child too.

Tbf to the 'bankruptcy' suggestion advocated earlier I'd be inclined to concur from a financial view. However, I dunno if I'd have the balls to see it through. Upping sticks ain't easy like that.

In conclusion, you made a huge mistake.but You're in bloody good company too.
Anecdotally, a huge amount of guys 'with money' over the boom either put it into property, bank shares-supposedly the sure bet and we know how these stand. Fellas you' assume are well clued in like pat Kenny for example is up to his neck in it. So please focus on the positives in your life which ever way things work out.

womandriver

Tim Robbins wrote: »

OP was in similar situation for a three years.

Got married in 2009, wife made redundant during honeymoon and then very quickly pregnant. We lived in apartment bought in 2006 for 250 and worth probably about 140.

The only solution was for both of us to work and watch every penny. She got a job and I got a better one (better money - worse work). We watched every penny for 3 years. did things like gave up pension to save more.

Went back to bank and got another mortgage for a 3 bed semi.

One thing I'd say is when we went to banks:

1. They didn't really care about our pensions or lack of.
2. They didn't really check rigoursly if the apartment was in negative equity or not. We said we planned to rent it out and this would cover mortgage. It was on a tracker with another bank. The reality is it would not cover mortgage if you include expenses such as taxes and management fees.
3. They never went into details about childcare costs
4. I never told them she was pregnant with number 2.

So basically, I should never have got another mortgage. The current house has probably dropped by 25K (the media are misleading people quoting average prices as the millionare houses skew all stats).

But we managed to get out.

Pretty friggin stressful.

I understand somewhat what you are going thru. Terrible.

Wow!

Lie to the bank to get another mortgage that you couldn't afford if you told the truth?

Who's fault is it going to be when it turns out you can't afford this one?

The bankers I suppose......

Wouldn't be taking this kind of advice

ElKavo

Sugarcake wrote: »

Thanks for that advice, we already have a loan with them of €9k and we have €7k in Shares which of course we can't touch until the loan is repaid, we are paying them back €500 per month, we really struggled when I was on Mat Leave and they agreed we could reduce our repayments to €250 for the duration of my leave, this has left us with approximately €1500 in arrears so I don't think they would allow us to borrow again. I suppose I can only ask though, nothing to loose at this stage. Regarding our Mortgage we took that out over the maximum period we could, I'm almost certain 35 Years again when we were in difficulty we spoke to them and this wasn't possible. At the moment we are just about keeping on top of any repayments and have never went into arrears on our Mortgage.

Hi Sugarcake,

You should be able to write off your savings to your loan as long as you stay to a 4:1 ratio.

I recently did this with my own credit union. Here is what i sent to them.

"I am unsure If this is possible but perhaps you could shed some light on it
for me. Going on the presumption that the loan to share ratio is 4:1 would
it be possible to use shares to payoff loan. I give my example below.

I have 9.5k loan and 6.5k savings. The savings are not earning nearly as
much as the loan is costing me. Is it possible to say reduce both amounts
in keeping to the 4:1 ratio? I.E if I kept ?1k in the savings and reduced
the loan by the ?5.5k bringing the loan ?4k and keeping the loan to savings
ratio to 4:1. Thereby reducing the interest bill, as it would then be on
?4k as opposed to ?9.5k

This would help greatly in my monthly expenses and also speed up the time
to total loan repayment."

This reduced our out goings on the loan greatly and we are now clear of the loan. The credit union did resist at first. See below

"I am emailing you in relation to your request detailed below.

I am unsure as to where you received the information on ratio's however we do not base transfers on this. Any request for share transfer must go to our board of directors. "

and then I was able to go back to them with ... See Below.

"I had been looking for the reference with the 4:1 ratio but It seems that I have given the incorrect information. It is a 25% minimum loan to share ratio so in other words 25% = 4:1 but I apologize for being unclear. This information comes from The Credit union act 1997 section 32 Point 3 B, From the Irish statute book. Here is a direct link to the act / section. http://www.irishstatutebook.ie/1997/en/act/pub/0015/sec0032.html#sec32. While I realize it must still go to a vote I just wanted to let you know that I didn't just pull the number out of the sky. Again to clarify I simply want to offset the shares to loan to reduce the overall liability of the loan and I do not want to withdraw the shares therefore there is no change in the overall/net indebtedness.

Thanks again for your consideration and I look forward to your reply."

Perhaps If you were to follow the same route it will free up some cash for your extension / move. Your paying about 500 pm to the credit union as it stands? That is cash that would suit you much better than them.

Anyway hope this helps you out. We are in a not dissimilar situation and are nearing the end of our "set up" debts and are planning on a move to a rented property closer to our parents ( we live over 1 hour away) and to an area with better services and facilities. There is light at the end of the tunnel and my god it sure does feel good when its within reach, so keep your head up be proud of yourself's because you are doing it all on your own!!

All the best.

D

turbot

As as interim solution, there are two things to consider:

1) If you have a garden, build a insulated shed to be used as an extra bedroom.

2) Alternatively, you could get a mobile home for 5k and dpending on laws, put this on your site too.

Other than that, remember that in many cities like Tokyo, space is an absolute premium so they are pretty good at getting the most out of small spaces. Your displeasure is based on the way you think (which may be more toxic for your child than the physical size of the space itself.) So - for as long as you can't change it, it is within our gift to change your attitude and you should. Even your description "trapped" shows you are working against yourself by the way you think. Loads of people even in Dublin from disadvantaged backgrounds live in small spaces and many don't let it bring them down.

fed up sick and tired

turbot wrote: »

As as interim solution, there are two things to consider:

1) If you have a garden, build a insulated shed to be used as an extra bedroom.

2) Alternatively, you could get a mobile home for 5k and dpending on laws, put this on your site too.

Other than that, remember that in many cities like Tokyo, space is an absolute premium so they are pretty good at getting the most out of small spaces. Your displeasure is based on the way you think (which may be more toxic for your child than the physical size of the space itself.) So - for as long as you can't change it, it is within our gift to change your attitude and you should. Even your description "trapped" shows you are working against yourself by the way you think. Loads of people even in Dublin from disadvantaged backgrounds live in small spaces and many don't let it bring them down.

Food for thought, interesting post.

the_syco

turbot wrote: »

1) If you have a garden, build a insulated shed to be used as an extra bedroom.

On this point, building an insulated shed for storage would free up a lot of space. Alternatively, building a small insulated room on the side of the house, and use it as a kitchen. Use existing kitchen as a bedroom, and have the meals in the sitting room.

Tim Robbins

womandriver wrote: »

Wow!

Lie to the bank to get another mortgage that you couldn't afford if you told the truth?

Who's fault is it going to be when it turns out you can't afford this one?

The bankers I suppose......

Wouldn't be taking this kind of advice

Well if you want to be 100% sure you can pay your mortgage - give you children to foster care.

Reality is it is very hard to get a mortgage once you have children but once you have it very hard for the bank to kick you out. The odds move from greatly in their favour to greatly in your favour.

That said - it would be reckless to buy anything you fear you will never be able to repay. I never did that and it a misrepresentation by you to suggest that. the banks discriminate against people with kids. Even thou most of us are going to have them over the course of a 30 year mortgage - they just hit the parents that already have them the hardest.

There's no need for your patronising crap. There are thousands of families stuck in small apartments. They are going to have to really think hard how to get out because this country is full of me feiners so no-one will help them. What's your solution?

womandriver

Tim Robbins wrote: »

Well if you want to be 100% sure you can pay your mortgage - give you children to foster care.

Reality is it is very hard to get a mortgage once you have children but once you have it very hard for the bank to kick you out. The odds move from greatly in their favour to greatly in your favour.

That said - it would be reckless to buy anything you fear you will never be able to repay. I never did that and it a misrepresentation by you to suggest that. the banks discriminate against people with kids. Even thou most of us are going to have them over the course of a 30 year mortgage - they just hit the parents that already have them the hardest.

There's no need for your patronising crap. There are thousands of families stuck in small apartments. They are going to have to really think hard how to get out because this country is full of me feiners so no-one will help them. What's your solution?

Oh it's patronising crap now is it to suggest lying to the bank is not the smartest plan of action for someone already in financial difficulty?

I don't have a solution to your problems but I'm pretty sure 2 unsustainable mortgages instead of 1 isn't it tho ....

mickdw

It is actually a very good idea to suggest building a tiny kitchen- something like you would find in apartments. The kitchen consisting of a cupboard arrangement along one wall and just alittle work space. This would possibly allow the creation of a second bedroom within the house.
I would have no issue with keeping back some mortgage payments in the short term to achieve this.

the groutch

Op, have you considered the option of "selling" your tracker mortgage.

most banks want rid of trackers, and you might be able to negotiate a partial writedown of your mortgage in exchange for converting to variable rate.

the deal would probably benefit the bank financially in the long term, but would greatly help you getting things straightened out in the short/medium term.

mylittlepony

http://www.youtube.com/watch?v=mn2WXgp-Knw

Idbatterim

Op, in the short term, you could build a small extention to comprise of one bedroom or perhaps a bedroom and new kitchen. Dig the foundation yourselves, let top soil go for free, get windows for free (freecycle) etc. put on a flat roof, use electric heater in the bedroom (no need for additional plumbing etc) this could be done for fairly cheap to be honest...

What is the current breakdown of rooms in the cottage? is it just 1 bedroom, one living room and 1 small galley kitchen and 1 bathroom?

ronan45

Tim Robbins wrote: »

Well if you want to be 100% sure you can pay your mortgage - give you children to foster care.

Reality is it is very hard to get a mortgage once you have children but once you have it very hard for the bank to kick you out. The odds move from greatly in their favour to greatly in your favour.

That said - it would be reckless to buy anything you fear you will never be able to repay. I never did that and it a misrepresentation by you to suggest that. the banks discriminate against people with kids. Even thou most of us are going to have them over the course of a 30 year mortgage - they just hit the parents that already have them the hardest.

There's no need for your patronising crap. There are thousands of families stuck in small apartments. They are going to have to really think hard how to get out because this country is full of me feiners so no-one will help them. What's your solution?

"but once you have Children its very hard for the bank to kick you out"
So am i right in saying the following
Home Owner A) Single guy
Home Owner Married Couple with 2.4 Children
Home Owner C) Gay Couple no kids

They all default on say 24 months payments lets say

Home Owner B has most chance of keeping his house because he has some sprogs ! :eek: that cant be legal