# Refused Interest only..



## Meath_John (21 Oct 2010)

Hi,

First time poster, Browser of topics pro.

To the issue ..Me and my better half recently applied for interest only payment for 5 months on our mortgage while my wife gives birth to our first child.

We have been refused on the basis that our capacity to repay based on our past bank statments is sufficient, we have been told that we can appeal but we have to make our next full repayment or face our credit rating been banjaxed

Now the whole reason we went to go on interest only is because my wife who earns more than my self has to give up work so her earnings will be gone and myself have been cut down to a four day week not looking good for the future and not earning enough to pay the bills, mortgage etc 

While we have worked out that if we did get the interest only we would just about scrape it till she gets back working thats with reaching the limit on credit card and overdraft...

We have very little savings as I was out of work the year before and zapped most of it and my wife was made redundant and went self employed ..

Now is it just me or is the bank/building soc   been a bit unreasonable here has it happened to anyone else recently ....what are the chances of winning the appeal?


Thanks 
Meath_john


----------



## rameire (21 Oct 2010)

option for you
your wife continues to work and you stay at home.


----------



## Meath_John (21 Oct 2010)

well I cant give birth   but thanks anyway


----------



## rameire (21 Oct 2010)

you wouldnt want to.
im kindof in the same situation.
3 weeks after giving birth the wife went back to work, as she is self employed.


----------



## truthseeker (22 Oct 2010)

Ive a self employed female friend who recently gave birth and she went back to work after 6 weeks. She was aware that if there were any complications she may have had to stay off longer (if she had a section for example). As it happened, all went well and she was fit to work after 6 weeks. She obviously would have preferred to stay off longer but the nature of her business meant that she would have lost clients, and her own financial needs meant that she needed to work again asap.


----------



## bluemac (22 Oct 2010)

[FONT=Verdana, Helvetica, Arial]to answer your question I agree with you you have been responsible going to them and requesting it and the bank don't seem to care.. find someone else to move your mortgage too.. about time they had some helpful decent people in the banks..  any other business would go bust if they didn't listen to reasonable customer requests... oh wait on.... they all did go bust and we own them 
[/FONT]


----------



## PiedPiper (24 Oct 2010)

*spread sheets*

hi

look I got sorted recently after major struggle and mega stress.  I did pay some guys €350 for their time advice and it was probably well worth it for me.  Told me what I should have known but helped me move on my thinking if you know what I mean.

Anyway did up a detailed proposal listing net income expenditure and so on and outlining how interest only was best option for the bank but somewhere in your plan there must be something about repaying capital and interest at some point.

A reduced capital payment might also help and ask them have they anything product or plan to hedge against rising interest rates.

Also good luck with it you can pm me if you need help with the draft it took me about 6 hours in total


----------



## cartman1 (25 Oct 2010)

Hi John,

You're right to put the welfare of your wife and child first and I don't think some of the posts are very helpful in suggesting your wife should go back to work earlier. Child development is more important than money. The bank are being very unreasonable but you should consider being more forthright with them. Cancel your direct debit and tell them you're giving them reduced payments for the next 5 months by cheque and then go back on full repayments. They have bigger problems to worry about than people in your position.


----------



## Meath_John (26 Oct 2010)

Thanks for the advice all has been read and taken on board,

We have appealed the decision and sent in a detailed budget of what will be coming in and going out in terms of spend, they have kindly informed us that  in the meantime we must make the next full payment or our credit history will be affected.

If the appeal gets rejected I dont know what our next step will be.

Again it just seems that the Bank/build soc  seem to be unwilling to help a starting family


----------



## Meath_John (2 Nov 2010)

Hi,

An update ...we have been granted interest only on appeal after sending in a projected budget and a detailed letter about what it will be like to have a baby 

Anyway great news for this house 
Thanks for the advice given


----------



## Ailesbury (2 Nov 2010)

*Interest Only Request*

Try again, this seems very unreasonable and the response lack empathy with your circumstances. Sometimes in dealing with a junior or inexperienced person within an institution you can get a poor response. If you dealt with the branch, call the HQ and ask for the collections department and even ask for a manager, alternatively keep the details of the interaction (mails, call times, conversation details etc) and make a complaint to the institutions complaint department. Keep going, running up more credit card debt etc is futile and will exaborate your cost in the long run, this is to be avoided. I hope this helps.


----------



## shinners (3 Nov 2010)

meath john that is good news that you got interest only. we were in a similar situation when i went on ml in june. took 3 mths to sort finally got 3 mths moratorium & 3 int only. even with int only we could not afford payments. I went to community welfare officer & applied for mortgage interest supplement which we got as I am sole earner & on maternity benefit. it took a while to sort but was worth the hassle & wait. i would def advise you to check if you would be eligible for it. its income based & will be backdated to when you first apply. also check if your eligible for a medical card & as your working once baby arrives family income supplement might be available.

edit: you said in first post that your wife has to leave work & her income will be gone. has she applied for maternity benefit?


----------

