# Soon won't be able to make full repayments on tracker mortgage



## JackN (29 Oct 2010)

Hi,

I searched the forums for a similar situation, but haven't found anything since the proposed new CCMA from the Financial Regulator.

I have a tracker mortgage with NIB at a very favorable rate of ECB + 0.5% and have never missed a repayment. However, due to redundancy, a new job on lower money, the income levy, etc, I will soon have to approach the bank to  request lower repayments over a longer period. I can afford to continue to reduce the capital, but not enough to redeem the mortgage within the original period of 15 years.

I fear NIB will insist I give up the tracker. I've searched the T&C's of the mortgage agreement and they could be within their rights to do so. However, I hope the proposed updated code of conduct from the Financial Regulator, specifically the clause: "The lender must not require the borrower to change from an existing tracker mortgage to another mortgage type", may help me.

I'd be pleased to hear if anybody has been through such a situation already.

Thanks for all input.


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## PiedPiper (30 Oct 2010)

Hi

I dont know about your specific situation what I would say is ask for your full file under freedom of information.  Make sure you read all your own documentation.  Dont go alone to meet them.

The first time I went to meet them alone was a full on nightmare the bullied and lied and I found them terrible to deal with.  You will need to be very firm and dont beg.

There is only the meanest and the  leanest left there so really hard to deal with


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## legallady (30 Oct 2010)

I agree with the above poster. Don't let them bully you and take advantage of your situation. If they do try to take you off the tracker, don't agree and threaten to go to the financial regulator. As a side issue, is there any way you can increase your income by renting a room out or taking in language students etc?


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## JackN (31 Oct 2010)

Piedpiper & Legallady,
Thanks for the advice.
Legallady: Am definitely looking at options to increase income such as room rental, but even that may not meet repayments shortfall. Am subsidizing the repayments from our savings at the moment, but can only do that for a few more months.


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## Greta (31 Oct 2010)

JackN, don't wait until you run out of savings - talk to your bank sooner rather than later about extending the term of your mortgage and try to hold on to your savings.

One word of advice - when asking your bank to extend your term, go for the longest term possible. You can always increase the payments later on, when your situation improves, thus reducing the term, but if you need to increase the term again later on, you'll need to apply to the bank again etc. So it is generally wise (if there are no early repayment penalties) to apply for a long term at first, and increase the repayments later on, if and when it suits you. In that situation, you will always have the option to revert back to the original repayments, so it gives you that extra bit of safety net.


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## Brendan Burgess (31 Oct 2010)

PiedPiper said:


> Hi
> 
> I dont know about your specific situation what I would say is ask for your full file under freedom of information.  Make sure you read all your own documentation.  Dont go alone to meet them.
> 
> ...



I am surprised at this comment, but I don't have any specific experience of NIB to confirm or deny it.

Most people who posted on askaboutmoney about their experience rescheduling, had a good experience. Check out this thread.

I would not go in all guns blazing, quoting the CCMA, and bringing in a friend.  I would go in with a positive attitude and expect a good experience. They are obliged to discuss various options with you under the CCMA. 

NIB's website has its [broken link removed] on Debt Managment. You can quote this section if you don't get a good response initially.

If you are not satisfied, you can complain to the Ombudsman. 

Good luck with it and do remember to report your experience on Askaboutmoney as it will be helpful to others. 

Brendan


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## JackN (1 Nov 2010)

Thanks Greta & Brendan. Sound advice!


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## Ailesbury (3 Nov 2010)

The financial regulator in October 2008 states that banks cannot move customers off trackers if they are in adverse circumstances thereby taking advantage of their situation. Look to the press statements on the regulators website, call them if in doubt they are good people offering good advice. Meet NIB, this whoudl not be an issue, if it is document the conversation and call the regulators advice number. Most insitutions will restructure and help you out ie stretch the term or put you in a lower payment for a while, while we all get throught this recession.


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## JackN (18 Nov 2010)

An update for those interested.

I met my NIB manager for an informal chat to discuss options. It was a friendly and open meeting. He said that it would not be a problem to go  interest-only for 3 or 6 months and that would not affect my tracker rate. However,  if it is necessary to reduce payments over the long term so that the repayments  extend beyond the original term of the mortgage, then they may require a move to variable rate. 

We left it at that for the present and agreed to meet again, if necessary, after I have a more complete view of  my 2011 income and the impact on it of the upcoming budget.


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## JackN (1 Feb 2011)

Another update:

I prepared a detailed 2011 plan showing income and expenses  along with supporting documentation such as pay-slips, bank statements, credit-card statements, etc..

NIB reviewed it and agreed to six months of reduced payments. After that, we will review the situation again.

I was hoping for a 12 month arrangement, but I will settle for this.


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## wbbs (1 Feb 2011)

Six months is the norm even if they know full well they will extend it at the review if circumstances are the same.   They have to justify their jobs!


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