# New Beginnings offers new solution



## Ryandd (30 Oct 2011)

Just thought this is worth a discussion, I had originall made contact with my bank to see if I could go interest only, I was a couple of months in arrears and had explained that I was unemployed and could not afford to cover the mortgage, their suggestion was that they would review if I could find a way to clear the current arrears, I was a little upset as after explaining my situation I'm not sure where they thought I could find the monies from before the end of the month.  I then made contact with New Beginnings who then replied with an attached letter saying that While they offer representation to people in the courts they are getting an increased volume of calls from people in arrears and looking for representation to negotiate on mortgage holders behalf.  We would need to complete a form detailing our income loans expenditure and the usual details, send it back with a fee of 35 euro to cover admin costs   It would then be decided if that person would benefit from the services of intervention and the second stage would commence where by they would put a case forward to your lender on your behalf to find a solution.  They have already put a solution to the gov that people in circumstances where they cannot pay the full mortgage should only pay 35% of their net disposable income and park the balance on the shelve allowing the repayments to rise each year which should then catch up to allow you to clear your mortgage over the original agreed term.  Thats the short version there may be a more detailed plan.  They do say that they charge a fee that can be discussed with the mortgage holder.  I'm just wondering as a group will the banks engage in talks on our behalf or can banks refuse to deal with them, don't want to make matters worse.


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## wbbs (31 Oct 2011)

Did you go to MABS?  I would try the free route first before you start paying for services like this.


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## Brendan Burgess (31 Oct 2011)

Hi Ryan

The New Beginning proposal is nonsense as I have outlined in this post. 

And, as I have told them, they are raising false hopes for their clients by pretending that there is a magic bullet. 

Brendan


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## Brendan Burgess (31 Oct 2011)

> I had originall made contact  with my bank to see if I could go interest only, I was a couple of  months in arrears and had explained that I was unemployed and could not  afford to cover the mortgage, their suggestion was that they would  review if I could find a way to clear the current arrears,


This makes no sense at all. 

Check out the Mortgage Arrears Code. There is a Mortgage Arrears Resolution Process which they must go through. If you engage with them, they must engage with you. 

Most people do this successfully on their own and get a good outcome. Around 70,000 people have had their mortgages rescheduled. I think you should do it yourself first before involving someone else. 

The Keane Report recommended setting up a state body of 100 advisors to help people negotiate their mortgages. Though I presume that this is some way off. 

Brendan


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## kennyb3 (1 Nov 2011)

New beginnings - the next great Ponzi scheme.


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## Kerrigan (1 Nov 2011)

I stupidly thought they were a registered charity!  So am quite surprised there is a fee.


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## Brendan Burgess (1 Nov 2011)

Kerrigan said:


> I stupidly thought they were a registered charity!  So am quite surprised there is a fee.



I don't think that charging €35 to cover the admin costs should be a cause of complaint.


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## Peter54 (1 Nov 2011)

€35 is very little to ask.  I am surprised that MABS don't also ask for a fee.

I have been tempted to give new beginnings a call but am worried that I could annoy my provider further.  Maybe its all a tad too good to be true.


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## Ryandd (1 Nov 2011)

I have approached mabs about a budgeting service and found they were helpful, this latest problem with the bank and clearing my arrears before interest only can be applied is making me nervous.  I know the new beginning Group were strong in their argument and maybe thought they would be worth trying, the 35 euro will come out of a weekly budget which still won't guarantee they can help my case.  Im not sure if they can deal with the banks on our behalf and maybe I should go back to Mabs, just wanted to know if anyone had used their service, saying that it appears to be new in terms of representing mortgage holders to the lender.  I heard Brendans argument against their Idea and to the ordinary Joe Soap it probably makes some sense, I just hope this discussion of mortgage solutions doesn't get put to the back of the pile in terms of government agenda


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## wbbs (1 Nov 2011)

There is no way the bank should be making paying the arrears a condition of agreeing a revised payment plan.   If obviously you have insufficient to make the monthly repayments then how on earth could you clear the arrears, do they think you have a source of money they don't know about?   I would go back to MABS and get them to make representation to the bank on your behalf.   In the meantime can you appeal the banks decision, I think the banks under the new MARP process must have a process in place for appeals.


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## Ryandd (1 Nov 2011)

I feel the same way until one of us find work its impossible to pay the mortgage social welfare will not cover it and even with interest only its a struggle.   We completed the financial statements so they are aware of our situation when we recieved the phone call about our application for interest only.  I will go to Mabs and explain the situation to them and hopefully this will help, Im unsure about the new beginnings negotiating on our behalf as I haven't heard anything about the process and don't want to make matters worse.  I understand that the banks have a process and code of conduct but at the end of the day certainly in my case they will try to recoup money like a debt collecting service really, thats just what I think.


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## wbbs (1 Nov 2011)

http://keepingyourhome.ie/mortgage_debt.html.en

There is a lot of info re the new arrears process in above link.  The bank must give you their decision in writing, then you should appeal it to their appeals board.   On the face of it their decision to insist on arrears being paid before restructuring is puzzling, unless there is something we do not know, but if all is as you say then appeal.


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## Ryandd (1 Nov 2011)

I'll have a look at the site you mentioned thanks, they told me that my application was in time for october so they had charged me the full mortgage and said that I had only paid part of september and I had explained to them I had extra costs as I have 3 kids going to school I said I would try to see if I could lodge some money in and they had she had said that I would have to make the full repayment.  I just can't understand why they charged the full amount with the figures are income and outgoings in front of her.  I know I have to build the nerve to go back to them, but I think like alot of people we are almost embarrassed to say we can't pay.


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## wbbs (1 Nov 2011)

They charged the full amount as you put it because it is a computerised system, the system looks for the full repayment each month until the restructured payments are set up.  The person in front of you was not manually putting through your repayment so had no control over the amount being looked for, it will always be the full repayment until their system has been amended.   Unfortunately all banks seem to be slow in processing these requests, customer goes in tomorrow for example and is unable to pay November payment, customer assumes something can be done before November payment due in few weeks e.g. but it could taken nearer to couple of months before agreement is made.   By that stage Nov & Dec could have been due and in arrears and it might be Jan before new agreement starts.   

Go back in, do not be embarrassed, they are dealing with this every day of the week, make the appointment tomorrow, get it over with.


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## Ryandd (3 Nov 2011)

HI I was in contact with the bank today as I had not met the amount of even the interest on the loan they cannot offer me interest only.  I applied for mortgage relief to help us out and am awaiting to hear back from social welfare, I had expressed that my concern was that the arrears are amounting all the time and could they not freeze the arrears until I found out how much I was entitled to.  The interest only is approx 800 pm and our income from social welfare is 480pw.  I try to put by money for the mortgage every month but it is still falling short, and this is what the problem is.  She wasn't sure why the last person I spoke to had said that the arrears needed to be cleared but that as I could not make the interest only payment they could not give me the facilitate me and they would talk to me again when the social welfare application for mortgage supplement comes back and they will talk to me again.  The Girl was very nice and understanding and I had felt alot more at ease.


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