Income details
Net (i.e. after tax) Income self: Self-employed- €1500/month (extremely variable here- no money in during Jan,Feb,March. So 2013 average is €1490, last 6 months is 1980/mo.) plus €440/month Jobseekers top-up
Income history: Lost job in 2007, self-employed contractor since 2010
Net income partner/spouse: Disability Allowance €440/month
Income history: Unable to work due to disability
Amount of child benefit received €260/month
Two adult family
Occasional car use- 1 business trip per week, otherwise work from home
Number of 4 - 11 years old: 2
Monthly spend on special circumstances: None right now, but may loose Med card soon, then prescription costs would be high.
So, Insolvency Service needs are €1738 if I need a car and €1798 if I don't
Home loan
Lender: AIB
Amount outstanding: €226,000
Value of home: €115,000
Interest rate: Tracker
Monthly repayment: Currently €400- interest plus capital portion
Amount in arrears: Made every agreed payment, define arrears...
Bought current house in 2006 with proceeds from previous house (we relocated cross-country for a new job), then I lost that new job 3 weeks after moving in. We continued full payments for a year or so, then used a mix of payment moratoriums, interest only, and full payments. The last 2.5 years were all interest only. Recently my self-employment has picked up, so I contacted the bank and requested that my payments be increased slightly so that we could pay off some of the capital. 3 months into that agreement, which ends in December. A couple weeks ago we were contacted by AIB and told that after December they would no longer offer us any deals, it was full payment or nothing, and that we should sell our house as we were in positive equity by €22,000 according to their figures. We disputed their figures (according the CSO, our house is worth €268,000, which it is not.) and they have since got a valuation of €115,000.
Credit Card - €400 (chipping away at this...)
Other savings and investments: none
How important is retaining the family home to you?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
Business for me is very periodic and project-based, so I can go months without work and then be busy as hell. Hard to judge an average monthly income. My business does seem to be growing, and I would hope that it would continue at the current good levels.
What is your preferred realistic outcome?
I would like to continue with a similar deal to what I have now- paying more than interest only, as much as we can afford safely, and increase that as time goes on so that eventually the mortgage is paid in full.
A few extras:
I believe that AIB are running some scare tactics at us, trying to get us to pay more. We are told they will not deal, but it really does make sense for them not to- the house is definitely in negative equity, and in an unfinished estate, so will not sell well anyway.
A family member suggested that a bank might agree to a lump-sum payment of a fraction of the value as full payment- i.e. if we find a rich uncle to borrow €50k from and offer it all to AIB at once, they may take that as full payment and be done with us completely. Have you heard of that?
AIB has said that we are not suitable for a split mortgage, as it has to be at least 80% of the market value, but would not explain when questioned. I can't get much more info about values being used in split mortgages, they seem to be all over the place right now, can anybody enlighten me as to what 80% she is talking about?
I mentioned in the initial phone conversation that my business was performing better than shown in my last SFS, so they have requested a new one to be filled out. I can bias my numbers depending on how far back I go for averages, so should I lean towards showing that I make more, and get in trouble if business drops again, or lean towards making less, and possibly not get a deal?
Lots there, but thanks for reading. All advice is appreciated.
Net (i.e. after tax) Income self: Self-employed- €1500/month (extremely variable here- no money in during Jan,Feb,March. So 2013 average is €1490, last 6 months is 1980/mo.) plus €440/month Jobseekers top-up
Income history: Lost job in 2007, self-employed contractor since 2010
Net income partner/spouse: Disability Allowance €440/month
Income history: Unable to work due to disability
Amount of child benefit received €260/month
Two adult family
Occasional car use- 1 business trip per week, otherwise work from home
Number of 4 - 11 years old: 2
Monthly spend on special circumstances: None right now, but may loose Med card soon, then prescription costs would be high.
So, Insolvency Service needs are €1738 if I need a car and €1798 if I don't
Home loan
Lender: AIB
Amount outstanding: €226,000
Value of home: €115,000
Interest rate: Tracker
Monthly repayment: Currently €400- interest plus capital portion
Amount in arrears: Made every agreed payment, define arrears...
Bought current house in 2006 with proceeds from previous house (we relocated cross-country for a new job), then I lost that new job 3 weeks after moving in. We continued full payments for a year or so, then used a mix of payment moratoriums, interest only, and full payments. The last 2.5 years were all interest only. Recently my self-employment has picked up, so I contacted the bank and requested that my payments be increased slightly so that we could pay off some of the capital. 3 months into that agreement, which ends in December. A couple weeks ago we were contacted by AIB and told that after December they would no longer offer us any deals, it was full payment or nothing, and that we should sell our house as we were in positive equity by €22,000 according to their figures. We disputed their figures (according the CSO, our house is worth €268,000, which it is not.) and they have since got a valuation of €115,000.
Credit Card - €400 (chipping away at this...)
Other savings and investments: none
How important is retaining the family home to you?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
Business for me is very periodic and project-based, so I can go months without work and then be busy as hell. Hard to judge an average monthly income. My business does seem to be growing, and I would hope that it would continue at the current good levels.
What is your preferred realistic outcome?
I would like to continue with a similar deal to what I have now- paying more than interest only, as much as we can afford safely, and increase that as time goes on so that eventually the mortgage is paid in full.
A few extras:
I believe that AIB are running some scare tactics at us, trying to get us to pay more. We are told they will not deal, but it really does make sense for them not to- the house is definitely in negative equity, and in an unfinished estate, so will not sell well anyway.
A family member suggested that a bank might agree to a lump-sum payment of a fraction of the value as full payment- i.e. if we find a rich uncle to borrow €50k from and offer it all to AIB at once, they may take that as full payment and be done with us completely. Have you heard of that?
AIB has said that we are not suitable for a split mortgage, as it has to be at least 80% of the market value, but would not explain when questioned. I can't get much more info about values being used in split mortgages, they seem to be all over the place right now, can anybody enlighten me as to what 80% she is talking about?
I mentioned in the initial phone conversation that my business was performing better than shown in my last SFS, so they have requested a new one to be filled out. I can bias my numbers depending on how far back I go for averages, so should I lean towards showing that I make more, and get in trouble if business drops again, or lean towards making less, and possibly not get a deal?
Lots there, but thanks for reading. All advice is appreciated.
