Mortgage advice

tamara25

For the last 3 years we had an arrangement with our mortgage provider. We were struggling at the time with the recession and my husband was out of work. We have been paying 700 a month. That arrangement has now come to an end & they want us to return to full payments monthly which is 1000 a month. We also have a credit union loan & it was mentioned to us that our mortgage comes first & feck credit union. We have filled out an income & expenditure form & we have only 50 euro left over after everything is paid monthly. I want to appeal this & offer to pay 150 extra monthly instead of the 300 extra that they are looking for. I am very concerned about agreeing to something that will mean we’re only scraping by every month.. of course I’m also putting off the inevitable & should I just suck it up, agree to what they want & tighten our belts even more.

amcalester

Are you prioritizing the CU loan over the mortgage?

tamara25

amcalester wrote: »

Are you prioritizing the CU loan over the mortgage?

I don’t look at it like that. We got into difficulty a few years ago with credit card debt & took out credit union loan to clear it. I’m also saving with them so my only option now is to cancel my weekly savings with them to help pay mortgage if we have to pay full amount ongoing. Thanks for your quick reply.

amcalester

Well, of the 2 only 1 will repossess your home.

Seems to me that your priorities are:

1 - CU Loan
2 - CU Savings
3 - Mortgage

Whereas they should be:

1 - Mortgage
2 - CU Loan
3 - CU Savings

Have you spoken to MABS?

tamara25

No we haven’t. Am I wasting my time appealing their decision?

Toots

If you have enough money to be saving every week/month, I'd be very surprised if they would entertain an appeal. How much are you saving every month and what are your loan repayments?

amcalester

tamara25 wrote: »

No we haven’t. Am I wasting my time appealing their decision?

You should, they’ll give you some good advice.

But as Toots says, the fact that you’re able to save each week/month and pay off a CU loan means you can pay more on the mortgage.

Essentially, you appear to be a strategic defaulter; prioritizing other areas over the mortgage and the bank won’t take too kindly to that.

Speak to MABS and get some impartial advice.

tamara25

We are paying 65 towards credit union loan weekly & 32 weekly into shares. We recently canceled sky so that is an extra 30 a month. 150 extra there that we can pay towards mortgage & other 150 will obviously be coming out of my wages. It’s just depressing canceling my savings. Always like to put a bit by for rainy day. We are only middle income earners husband self employed & I work 4 day week. We’ve never been on a sun holiday, don’t spend a lot on luxuries cause we simply don’t have it...

tamara25

tamara25 wrote: »

Always like to put a bit by for rainy day.

eh....I think not being able to pay your mortgage is a rainy day

amcalester

Forget the shares, you probably can’t even withdraw them while the loan is outstanding.

Half the CU loan repayment, stop the shares payment and you could afford the €300 extra to the bank each month.

No point saving for a future rainy day when it’s already lashing it down and you’ve no umbrella.

tamara25

Okay guys I hear ye. This is not something I can discuss with anyone ie family/friends as it’s a very personal issue. It’s good to get advice here!

Toots

To be totally honest the bank aren't going to give a toss about a sun holiday and putting money away for a rainy day. If you mentioned anything like that in an appeal they'd tell you to get stuffed.

Honestly, I've been where you are and it sucks. It's only very recently that I've got any sort of potential to save. If they've given you a 3 year forbearance, they're not going to continue to reduce your repayments unless you literally cannot pay the full amount. If you have enough money to put into savings, then you can pay the full amount.

How long is left on your CU loan?

tamara25

Yes it does suck toots... we have roughly 2 years left on it I think. We would have paid it off sooner but I have topped it up more than once over the years.. next step now is to see where I can cut back on to save money. I was thinking mobile phone costs, grocery shopping, electricity provider & that is a whole other thread!!

Toots

It might be a long shot, but you could always see if they'd let you continue paying 700 until February, and at least that would let you get Christmas behind you before having to do some serious belt tightening.

If you want to stick your budget up here go ahead, and I'm sure posters could give some pointers. Also MABS are excellent, so It would be worth having a chat to them.

Seriously, if I had a tenner for every time I had to fill in one of those financial statement forms during the recession, I'd have enough for a holiday.

amcalester

tamara25 wrote: »

Yes it does suck toots... we have roughly 2 years left on it I think. We would have paid it off sooner but I have topped it up more than once over the years.. next step now is to see where I can cut back on to save money. I was thinking mobile phone costs, grocery shopping, electricity provider & that is a whole other thread!!

How much have you got in shares? Can you use those to reduce the CU loan while also reducing your weekly payment and/or extending the loan (to reduce the payment)?

Generally speaking the CU will be the easiest of your creditors to deal with, so do that.

The mortgage has to be the number 1 priority, everything else should be paid out of what’s left after the mortgage is paid.

Gas/Electricity providers should be switched at every opportunity to take advantage of lower prices, for example I got €200 from Electric Ireland this week for switching to them.

keavebm

I know what people are saying. Dont save put all towards the house!!

**** the bank's abd fųck the house. Stand ur ground dont give into these money grabbing bàstards. They got us into this mess in the first place.

Keep saving. At thevend of the day you have a rainy day fund. Stand your ground against the banks. Criminals is what they are

Damiencm

keavebm wrote:

I know what people are saying. Dont save put all towards the house!!

keavebm wrote:

**** the bank's abd fųck the house. Stand ur ground dont give into these money grabbing bÃ႒ stards. They got us into this mess in the first place.

keavebm wrote:

Keep saving. At thevend of the day you have a rainy day fund. Stand your ground against the banks. Criminals is what they are

This is the advice you should listen to... if you want to (eventually) be evicted

amcalester

keavebm wrote: »

I know what people are saying. Dont save put all towards the house!!

**** the bank's abd fųck the house. Stand ur ground dont give into these money grabbing bàstards. They got us into this mess in the first place.

Keep saving. At thevend of the day you have a rainy day fund. Stand your ground against the banks. Criminals is what they are

You’re dead right, sure the bank probably put a gun the OP’s head and made them take out the mortgage.

And, as if that wasn’t bad enough, the bank made them sign up to Sky, borrow money on credit cards/CU and then decide to save money in the credit union instead of paying for the roof over their head.

Absolute criminals those banks.

Geuze

tamara25 wrote: »

We are paying 65 towards credit union loan weekly & 32 weekly into shares. We recently canceled sky so that is an extra 30 a month. 150 extra there that we can pay towards mortgage & other 150 will obviously be coming out of my wages. It’s just depressing canceling my savings. Always like to put a bit by for rainy day. We are only middle income earners husband self employed & I work 4 day week. We’ve never been on a sun holiday, don’t spend a lot on luxuries cause we simply don’t have it...

Repaying a loan is saving.

tamara25

Our mortgage was taken out with Permanent Tsb years ago. We got a letter today from them stating that our loan will be transferred to glenbeigh securities within the next 6 months. Once it is transferred pepper finance will then be servicing our loan from the transfer date. We have recently agreed with p Tsb to go back on full payments with them. Letter states also that all existing consumer protections will remain in place. I am concerned about this.. how will this affect me going forward?

Wheety

tamara25 wrote: »

Our mortgage was taken out with Permanent Tsb years ago. We got a letter today from them stating that our loan will be transferred to glenbeigh securities within the next 6 months. Once it is transferred pepper finance will then be servicing our loan from the transfer date. We have recently agreed with p Tsb to go back on full payments with them. Letter states also that all existing consumer protections will remain in place. I am concerned about this.. how will this affect me going forward?

You'll still have the same protections and once you're making a proper effort to pay your mortgage, you won't be evicted. They probably won't give you any more deals though.

How much should your mortgage be? How much are you paying? Are you on a tracker? If not, what rate are you paying?

I'm only seeing this thread now but a quick and easy saving is to get rid of any tv subscription. You mention having Sky so you have a dish on your wall. Get a satellite receiver and you'll have free tv. A Saorview aerial will give you the Irish channels. I do know there's an initial cost of setting up but after that no more tv bills.

How much are the mobile phone bills? If out of contract, look at a Three pay as you go sim. €20 for 28 days of unlimited data.

tamara25

Thanks for your reply yes on a tracker & we pay 1000 monthly. We did get rid of sky since & have installed free to air. It’s fine but miss the fact I can’t tape programmes. Must sort out my phone next, am topping up by 20 every 3 weeks I’d say. I’m with 3, I know where it’s going, I spend way too much time on u tube. If you have any more tips on ways to cut back/save money let me know.

Wheety

tamara25 wrote: »

Thanks for your reply yes on a tracker & we pay 1000 monthly. We did get rid of sky since & have installed free to air. It’s fine but miss the fact I can’t tape programmes. Must sort out my phone next, am topping up by 20 every 3 weeks I’d say. I’m with 3, I know where it’s going, I spend way too much time on u tube. If you have any more tips on ways to cut back/save money let me know.

Depends on the box you have. If you're just using the Sky box you lose a lot of functionality when you no longer have a subscription but when you use your own box you can get ones where you plug in a hard drive and can record.

What package are you on with Three? With PAYG your credit would not deplete on Youtube. Topping up every 3 instead of 4 weeks is around an extra 4 top ups a year.

Have you stopped the savings in CU? Talked to them about changing terms of loan?

Is €1k the full amount you should be paying? Or is it a deal with the bank?