# Have you been told by your lender that your mortgage is unsustainable?



## Brendan Burgess (30 Jul 2013)

I am preparing a paper or mortgage unsustainability and would like to get an understanding of what sort of reasons the lenders give for deciding that a mortgage is unsustainable. 

This is what the Mortgage Arrears Code says 



> 45.                 *If *a lender does not offer a _*b**orrower *_an alternative repayment arrangement, for example, where *it is concluded that the mortgage is not sustainable* and an alternative repayment arrangement is unlikely to be appropriate, *the lender must provide the reasons*, on paper _*, *_*to the borrower. *


I have never seen proper reasons given. Here  is a recent example from an EBS mortgage, which I don't think meets the requirements of the Code. This is too vague for the borrower to challenge.



> We are not in a position to offer you an alternative repayment arrangement as your mortgage is unsustainable.
> 
> In assessing your case, we used the information you provided in the SFS . Based on your financial circumstances, we do not belive that you will be able to return to full contractual payments in the future



Has anyone else been told their mortgage is unsustainable? What reasons did the lender give?


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## itsallwrong (4 Aug 2013)

This topic comes back again.
What defines an unsustainable mortgage?


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## khards (4 Aug 2013)

> *unsustainable*
> 
> adjective
> 
> ...


Therefore an unsustainable mortgage is:

'a mortgage that is not able to be maintained at the current rate or level'

For example: 

The level (value) of the mortgage is so large that the mortgagee would not be able to be repay the full loan before death and would be unsustainable based on current figures.

The repayment (rate) on the mortgage is so large  that the mortgagee would not be able to keep up repayments based on current figures.



> In assessing  your case, we used the information you provided in the SFS . Based on  your financial circumstances, we do not believe that you will be able to  return to full contractual payments in the future



So in your example the figures given on the SFS would mean either:
1,The borrower will not be unable to return to making full payments in the future.
or
2, The borrower will be unable to repay the total loan in the future.


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## misterk (17 Aug 2013)

At my recent SFS meeting, PTSB told me my mortgage was unsustainable as it was more than 30% of my income


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## Redsquigy (20 Aug 2013)

*Unsustainable mortgage*

My bank have told me my mortgage is unsustainable. No arrears not in negative equity. Lost my job three years ago, first year paid fully - I had PPI, last year I had a job for 10 months and paid all months fully then. I was on a 6 month interest only from last Jan - this finished July and I went through another financial statement with the Bank. It was after this they told me unsustainable and advice was to sell my house. No other option given to me. When I rang them to tell them I was seeking advice was advised to do another financial statement and have brought my figures well up - no word yet as they say it is still being assessed.


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## joedan (20 Aug 2013)

bank has said mortgage unsustainable. no reason as of yet. obviously anyone seeking a resolution could be deemed unsustainable otherwise it could be paid. I am at a loss as to know how bank seems to know what our future earnings will be. We were only looking for a solution over next 3-5 years while kids small.


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## Brendan Burgess (20 Aug 2013)

Hi Reds 

Which lender is it? 

Could you start a new thread with this information please? 

Standard Format for unsustainable mortgage Case Studies

I am concerned that the banks are deeming sustainable mortgages to be unsustainable so that they meet the targets for "sustainable solutions" issued to them by the Central Bank.


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