Some Advice Please...

A

Angeline

Guest
Hello,
If anyone could give me some advice, I would greatly appreciate it..
My mother has got into fiancial difficulties and I am worried,
It all started when my father left and left her with debts. She has tried
loans but no one will give her enough to get rid of all the debt,
and so she keeps having short term solutions but the problem never goes
away. I have a younger brother and sister who are still in school...
my mom's father is dead and her mother is in a care home and neither owned any property or had any money.
She pays Euro 1750.00 per month on her mortgage , and has never missed a payment and has 14 years left to go,she has never missed a payment on any loan or credit card, but has made late payments which makes her credit history not so good, but she has all the bills to prove that everything has been paid.
My Mother is 45 and has worked full time for 30 years and has
never been unemployed , she also works catering on the side to try and make ends meet. Her full-time job is a managerial position and her salary
is nearly Euro 38,000 per year.
Total debt is max Euro 100,000 or including the mortgage Euro 300,000
approx , She needs someone to let her borrow either amount of money with reasonable repayments...or its just never going to end...
 
Angeline said:
It all started when my father left and left her with debts.
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How did he get away with this? Has she pursued him for maintenance etc.? Is she entitled to anything from her (former?) husband?
 
Try mabs see here

They may also be able to point you in the right direction of presuing your father for maintenance etc.

Your mother may also qualify for a medicial card or a GP only card for the family See [broken link removed]
 
My father left the country, so she could never persue him for maintenance.

I have contacted Mabs....thanks for your help.
 
My father left the country, so she could never persue him for maintenance.
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Not so sure about this. You or your mother should contact a good family law solicitor. Free legal aid may be available to you/your mother. As I said Mabs may be able to point you in the right direction.
 
Were the debts in both names?

As asdfg suggests, it would certainly appear that your mother should seek legal advice as to her rights.
 
Angeline, can you clarify something.

As I understand it your mother has a mortgage outstanding of 200,000 on which she is making payments of 1750 pm and has 14 years left to pay. Can you double check this as payments of 1750 pm on 200,000 doesn't sound right. Find out what the interest rate is and when she took out the mortgage.

If she got the going rate today in home loan interest rates of 4.5% on 200,000 over 15 years it would mean repayments of less than 1500 pm. Maybe talk to your bank about what options are there on the mortgage. Reducing her mortgage repayments might leave something there to pay off the loans she has starting with the higher interest ones.
 
davidoco said:
As I understand it your mother has a mortgage outstanding of 200,000 on which she is making payments of 1750 pm and has 14 years left to pay. Can you double check this as payments of 1750 pm on 200,000 doesn't sound right. Find out what the interest rate is and when she took out the mortgage.
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Or if the mortgage is that big, is the house of enough value now to downsize and use some of the equity that might be in it at the moment to pay off some of the debts.
 
Im not sure if she can sell the home as the other owner is not in the country?
 
Angeline,

It sounds like your mother needs to get legal advice.

The Free Legal Advice Centre in Dublin has a free service - I've used it and they are brilliant.

www.flac.ie
(01) 874 5690.

They have office all around the country - list of website or call no. above.

And good luck.
 
If she's paying the full mortgage payments, surely there's some claim to the property, or a share of it if it was sold.
 
Thank you all so much for your advice,

The situation regarding the mortgage is as follows, the property was already remortgaged to pay off mortgage arrears, and there is no equity on the home.

We could not get a mortgage over 20 years or longer because of my mothers age so she could only have over 15 years, at the moment there are no arrears on the mortgage and all payments are up to date.

The repayments are high becuase she is also paying payment protection I have looked up the mortgage agreement and the payments are actually 1602.15 plus payment protection 58.49 Total = 1660.64 the new interest rate from August is 4.35%

There has been 3 hikes in interest rates this year as her mortgage is variable, could anyone advise if it is a good idea to go on a fixed rate.
Does anyone have any idea of where you could go to re-finance if you are in this situation as my mother is determined to pay all her debts

Thanks Again,
Angeline
 
Did you enquire from different mortgage providers or a mortgage broker ?

I'm 50 & I could get a mortgage for €160k over 20yrs. Some companies will do mortgages up to age 70, which would give your mother 25yrs.
 
Definitely go to other banks/building societies (I personally recommend EBS) and enquire about a 20 year mortgage. A 20 year mortgage would bring repayments down to about 1200 (less TRS) and should give her some breathing room to pay the other debts. If needs be make sure she has a tenant in one of the rooms paying anything up to €100 euro a week to make her income look better.

PS Check to make sure your mother is claiming TRS (mortgage interest relief) on the payments. She should claim as a married person for the higher allowance giving your father’s PPS number if necessary. It might also be worth your while checking her tax credits to make sure she is claiming as a one-parent family on the tax credit side of things. It is an anomaly on the TRS that they only mentioned married/widowed and don’t publicly make an allowance for someone in your mother’s case ie deserted etc.
 
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