# Crippling Mortgage and negative equity



## random2011 (9 Jul 2011)

Heres the situation basically.

300k mortgage

30 years left

Variable rate almost over 6% (was 3.9% 18 months ago with PTSB)

1450 month (WAS 1079 when we came off fixed rate 18months approx)

Property worth 100k

Love the house, its our family home but even at that had to move away  from the city and now spending a fortune on petrol to get to work. Wife  is the same. We work hard and have no disposable income.

Dont want to have to emigrate but worked out paying 1450 *360 (30 years) over 500k is depressing on a property worth so little.

Have to say also my broker gave me the worst deal he could. Threw us on a  fixed rate mortgage when a tracker wud have suited us obviously. During  fixed rate the rates kept dropping. After coming off fixed rate he then  advised going to variable when the bank offered a tracker and the opposite happened, rates starting increasing.. Although  tracker wanst great at that stage. 3% over ECB. The PTSB 1% hike was  painful along with the other .25% hikes. That was 18 months ago and the  mortgage has gone from 1079 to 1450 and another rate hike at the end of  the year looks possible.

Dont know where to go but i dont want to have this debt with me for 30  years. I would be quite happy paying 1200 a month for the duration but  the cost now combined with the worth of the property is just ridiclous


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## jackbetal (16 Jul 2011)

Have you approached your bank and told them about your predicament? What percent of your income are you paying out as mortgage? Also when you got the mortgage initially how many times was the loan your annual earnings?


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## random2011 (16 Jul 2011)

Haven't approached the bank . 

Paying about 50% of income on mortgage. Add Creche and everything to this means no disposable income. 

Got a mortgage of 299k on wages of 28k and 32k combined. 

Nothing we can do I suppose but just go into arrears sooner or later 

Thanks for comment though


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## Daisy09 (18 Jul 2011)

Have your wages dropped since you bought your house?  Unfort the negative equity doesn't really come into it, its unfortunate that your house (along with mine and many others) are worth so little compared to the mortgage we are paying but hey thats the way things went.  Have you worked out whether it would be more cost effective for your wife to give up work.  It might be worthwhile to fill in the form in the money makeover section of the site, write down all your outgoings and people might be able to make some suggestions of where you could save money.


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## jackbetal (19 Jul 2011)

I would take Daisys advice about the money makeover section and see where people might suggest you can save. But more importantly you would really want to approach your bank immediately. Ask to speak to someone and let them know your full facts about defaulting soon if they cannot help you. You will really have to take a more proactive approach. I know this is very, very difficult. Because it is such a depressing place to be it can be very hard to approach it all. You can get in a rut. You would really have to try and discuss with your mortgage provider face to face that you need at the very least interest only for the foreseeable future but even before you ask that push for a write down on some of the loan. They may laugh you out the door or you may get lucky. You have to let them know that you are not under any circumstances willing to give up your family home. Ask for a a lot and see what you get. Remember that the onus is on the bank to structure a deal to help you through this. 
Ring the bank for an appointment today. Be confident. You did nothing wrong. 
Let us know how you get on.


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