# Does AIB grant Mortgage Moratorium for Lifestyle reasons?



## Reviewing (8 Nov 2010)

We have a mortgage with AIB with approx €50k negative equity.

We have approx €25k of other loans due to Education, Furnishing House, Wedding etc. over past few years. 

We both have secure jobs and there is no problems meeting the mortgage repayments and other loan repayments. Current Payment Plans will have other loans cleared by early 2012 (but 2 new motor loans would be needed very soon after - cars getting old and less reliable / NCT issues)

Do banks ever grant a moratorium on Mortgage Payments in such situations?  (for 6 months)

It would be nice to clear these loans and start saving for new car etc. rather than paying these loans over a longer period. 6 months extra mortgage payments in 20 years time does not bother me. It would greatly improve our lifestyle at the moment and draw a line under a very expensive period of our lives.

Would there be any TRS or Credit Score issues?

The Mortgage is with AIB but Other Loans are with BOI and Credit Union.


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## niceoneted (8 Nov 2010)

I wouldn't think so but you can ask. 
Why not fill out the money makeover section - http://www.askaboutmoney.com/showthread.php?t=61289  and people here may be able to advice on where to cut back so you can save for the cars or clear your debts quicker.


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## Reviewing (8 Nov 2010)

Thanks - I think I will contact AIB this week. 

We are already overpaying the loans so I don't think there is much extra we can gain. No Sky or expensive broadband, need 2 cars, non-smokers, no pets, claiming tax credits etc....


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## dereko1969 (8 Nov 2010)

do you really need 2 "new" cars? given the level of debt you are in should you not just drive your current cars into the ground?


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## Reviewing (8 Nov 2010)

dereko1969 said:


> do you really need 2 "new" cars? given the level of debt you are in should you not just drive your current cars into the ground?


 
That is the plan but they will both be 10 years old in 2012 so it is likely that 'newer' cars will be needed soon after clearing loans.


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## dereko1969 (8 Nov 2010)

Depending on the car, most models should last 15 years at least.

I think it's the wrong mindset to get into to start thinking about further debt at the moment, living off loans long-term is not where you want to be. 

Starting saving now, even small amounts per month, will lead you to having at least some money put aside in 2012/2013.


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## Ailesbury (8 Nov 2010)

If you are in negative equity, by requesting a morotorium, if granted, you will roll up another 6 months interest, the negative equity will increase by this amount and will probably even be more as prices continue to fall. You have little chance of this being granted. In some instances this might be done eg illlness, medical expenses, education etc, but not for 2 new cars, forget it. The morotorium will be registered on the ICB in most instances, this could impact your credit rating, the TRS is still valid as far as I am aware, but call the revenue and they will tell you, 1890333425.


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## jambo.ie (9 Nov 2010)

6 months of interest only/rolled up interest does not extend your mortgage term by 6 months only. I don't know exactly how long but it will be considerably longer than that because you will have extra interest to repay.


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## QED (9 Nov 2010)

I don't think this would be allowed or a good idea. 

Depending on age and income level €25k may not be a huge outstanding amount if it was spent on Education, Home etc. as _once-off_ costs. 

The main thing is not to continue to spend at this level and focus on reducing your outstanding debt. - And forget about cars for a while!


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