# Not in arrears,paying mortgage but really struggling...



## cailte43 (16 Feb 2014)

Is there anything being done for borrowers who are paying their mortgages, are not in arrears but are in negative equity and are now really struggling? We are both lower paid public servants so no hope of our incomes increasing or of promotions over the next years. We have put off having a family because we can barely support ourselves, let alone a baby as well (which has broken our hearts but that is another issue for another forum). We bought at the height of the housing boom and after getting the house valued recently, we are in negative equity to the tune of 100k, at the very minimum.

If we were to go to our bank (AIB), what options will they offer us, if any? What we want is to have some of the mortgage written off because of the negative equity but I assume we will only be laughed at because of the fact we are paying. Will they instead look at the options of extending the mortgage term, asking us to go interest only? We do have a tracker mortgage, about the only blessing is this nightmare we are in.

Any advice will be appreciated and I would please ask for some respect in relation to our both being public servants (and thus in 'cushy pensionable jobs') - both my husband and I are in the lowest grades possible in the public sector and when I say we can't afford to have a baby, we really can't. I have €5 in my purse to last me until pay day.


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## Maretta (17 Feb 2014)

Have a family member in a similar situation so can understand your worry and upset. Has been on Jobseekers for some time and continually applying for work and has now managed to get only a part time job. Not in arrears due to living (existing) very frugally and with financial help from the family has just about managed so far not to get into arrears. Is in negative equity and with her limited earnings I cannot see how she can hold onto her home if she is to have any sort of a life. The stress has to be  enormous and I know she feels very bad accepting help but without it she cannot pay her mortgage and eat. It is unsustainable long term and there doesn't seem to be any solution or is there?


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## PaddyW (17 Feb 2014)

All I will say is it doesn't matter whether you're in the public sector or the private sector, if you're struggling, you're struggling, so you will get balanced views either way.

By the way, have you done the Money Makeover section to see is there any way you can save yourself a few quid?


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## Delboy (17 Feb 2014)

There was a lady on Liveline last week who's husband lost his job 5 years ago and was still out of work...since then she had I think about 3 or 4 kids. Car was repossessed and they could'nt pay the mortgage.
So the council bought the house and rented it back to them!!!

So perhaps, given how the mortgage crisis is playing out in this country, 1 of you need to take a long career break or even quit the job. My advise is to not put off having a family if you really want kids- best thing that could ever happen to you. 
Then approach the various interest groups such as FLAC, IMHO or NB for advice as you'll no longer be able to afford the mortgage very soon. Eventually try and secure a deal from the bank through 1 of the many routes available.

I'm not being facetious and I'm sure there are plenty on here will castigate me for this 'advice'. But read the papers and listen to the media....there's nothing for those who are struggling but keeping everything up to date. You need to stop paying to get the support and the media droves behind you


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## Brendan Burgess (17 Feb 2014)

Hi Cailte

It's hard to advise without knowing the figures e.g. value of house, amount of mortgage, salaries etc. 

But let's assume you have a €300k mortgage on a tracker of ECB + 1%.  

The interest element of this is costing you less than €400 per month.  You presumably could not rent anything for anything less than double this. 

As it's a cheap tracker, you are paying down your mortgage balance in big lumps every month.  Depending on house prices changes, you will be out of negative equity in a few years and then making real savings after that. 

Your problem is that you are low paid. It is not the bank's fault.  With your cheap tracker, you are exploting the bank, they are not exploiting you.

Let's say AIB said to you that they would allow you to sell your home and that they would write off the negative equity?  Would you be better off? Would you be able to rent a similar property for less than your current repayments?  

Even if you can rent for less than the current repayments, it would be  a short-term advantage.  Rents could well rise significantly over the next twenty years but you will always have your cheap tracker. Of course interest rates may rise as well, but the impact on you will probably be a lot less than rent rises.


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## ClaireM (17 Feb 2014)

The MARP process is not just for those in arrears but those who are worried about going into arrears. 

What is your income like compared to the RLEs for your family? Would you do a Standard Financial Statement and ask for a restructure? The worst they can do is leave you as you are.


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## SarahMc (17 Feb 2014)

I know you feel boxed into a corner, and it is heart-breaking that you have had to put plans on hold and both work just in order to stand still.

 The days of the public sector being cushy jobs are gone, certainly for those on the lower grades, you are right, there will be no pay rises or opportunities for anyone wanting to progress. Have one or both of you considered looking elsewhere, retraining?


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## Bronte (19 Feb 2014)

Delboy said:


> . My advise is to not put off having a family if you really want kids- best thing that could ever happen to you.


 
I too agree with this advice, even without the figures.  Some things are just more important.  Not often you and agree Delboy 

If Cailte comes back with figures she might get some ideas on savings or options.


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## Delboy (19 Feb 2014)

Bronte said:


> I too agree with this advice, even without the figures.  Some things are just more important.  Not often you and agree Delboy



I feel dirty!!!


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## Bronte (19 Feb 2014)

You feel dirty, how so?


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## Delboy (19 Feb 2014)

I was joking there! Me and you in agreement and all that
Don't know how to make the emoticons so perhaps thats why you did'nt get it!


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## Bronte (19 Feb 2014)

Another first for me today Delboy, I can help I think on the emoticons, by which you mean I'm guessing the smilies.  When you're doing the reply look up the top of the message and you see a white smile moon, there you have an option to put it in by clicking the one you want.  But if you go back in to edit you cannot get it, then I copy and paste.


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## so-crates (19 Feb 2014)

Easy peasy to fix though once you know how they are done Bronte

Just type the characters beside the emoticon but without any spaces

 : )
 : o
 : D
 ; )
 : p
 : cool :
  : rolleyes :
 : mad :
 : eek :
 : confused :
 : (


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