We have a tracker mortgage on our home with Ulster Bank which was taken out in 2004. We ran into difficulty on the loan in 2008 and by arrangement with the bank we moved to interest only payments. Since then we have had regular reviews with the bank and each time we were asked to pay a bit more towards the capital as well as the interest. Our financial position is not much better than it was in 2008 but we have agreed to the payments each time in an effort to try and keep the house.
In our latest review, last week, despite the fact our financial position has not changed significantly , we were told there were new guidelines issued in recent months and that our figures now show the loan is affordable for us and that we are now to go back to full capital and interest payments , which is essentially a payment more than double the payment we were making. We were also told if we make the repayments for six months they will consider recapitalisation of our arrears of €45 k which arose when our current arrangement expired and we were automatically put back onto full payments. The bank will not consider a mortgage term extension and we have been told we can appeal.
Our house now has significant equity because of the upturn in values and we believe that this is possibly the reason for the change in view by the bank. It is not an option for us to trade down as we would not get enough from a sale and we also would not get a loan from any this bank or any other bank because of our credit problems.
Is there anything we can do as we cannot afford full repayments or can anyone give us guidance on how to proceed now?
In our latest review, last week, despite the fact our financial position has not changed significantly , we were told there were new guidelines issued in recent months and that our figures now show the loan is affordable for us and that we are now to go back to full capital and interest payments , which is essentially a payment more than double the payment we were making. We were also told if we make the repayments for six months they will consider recapitalisation of our arrears of €45 k which arose when our current arrangement expired and we were automatically put back onto full payments. The bank will not consider a mortgage term extension and we have been told we can appeal.
Our house now has significant equity because of the upturn in values and we believe that this is possibly the reason for the change in view by the bank. It is not an option for us to trade down as we would not get enough from a sale and we also would not get a loan from any this bank or any other bank because of our credit problems.
Is there anything we can do as we cannot afford full repayments or can anyone give us guidance on how to proceed now?