# interest only declined



## siofra (14 Jun 2011)

Once again I am in tears after trying to sort out my finances with ICS . Every time I ring up I have to speak to someone new and today was no different. My Husband has got a job in NZ and myself and my young family are moving over there early Sep. We want to put our House on interest only for 2 years. We Applied in Jan 2010 and finally were approved for 6 months interest only in march 11...it took 8 weeks of hassling them to get an answer Thankfully for us they did approve us but said that they could only give approval for 6 moths at a time ....and we would have to reapply again....which having learnt our lesson the hard way we sent in the exact same details in again in April and today I received letter saying" Due to the fact that the loan does not fall within the criteria set out for the interest only product ,Your request has been declined by our credit dept. Please call our collections department.

So I rang them ..(only after going on along walk to calm myself down) ...The officer seem to be very detached and uninterested .I explained that this needed to be sorted before I left the country as it was hard enough dealing with them in Ireland ...I can't imagine what it would be like dealing with them from overseas. i said we could only afford interest only and asked what were they going to do ??? He said the collection team would be looking at it and that they would let me know in time.....should be before the end of August!!!! The stress is unbelievable .....I said i was trying to help them by letting them know what our situation was and trying to get all the paperwork into them on good time as i know that they are snowed under. I suggested that i go and see them in person he said I could if i wanted to but that they would not make any difference as no decisions would be made on the day . I really don't have any faith in their abilities . background on this .... 100 percent mortgage taken out in 2007 for 375k , went to interest combo of 1000 per month in 2009 ... 2011 interest only for 6 months. Have been trying to rent house out and if we do we were going to add this to the interest only but as we live in a remote part of the country and so far no luck with trying to rent it out. Would love to sell it but its only worth 190k . I am not trying to run away from my problems and commitments to the bank ... but today it all seemed too hard and I just feel like walking away from it all. I just dread dealing with them ..Anybody have any similar experiences dealing with them or any suggestions for me ...thanks Siofra


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## alexandra123 (14 Jun 2011)

It seems like they are giving you as much hassle as possible to stop you from wanting to apply for these interest only mortgages for a set period of time. August is a long time away to wait for an answer. 

Maybe the fact that this is the 2nd time that you are applying could go against you. I doubt the banks want to keep putting this in practice for the same house over and over again,although this is only your 2nd time. 

Maybe due to the fact that your husband has a job in New Zealand or is getting a job in New Zealand is going against the rules of requirements for interest only mortgages ? It is probably less stressful for you if you communicate via mail rather than phone. 

I would say that the banks are getting sick and tired of the crying game. I know everyone is hard pressed and it is our own faults for agreeing to the ridiculous prices at the time. Would another bank take on this mortgage,even though it is in negative equity ?

I know someone who has 5 mortgages. They told the bank that they could no longer afford to pay the full mortgages. The banks agreed to interest only until situation changed. The banks then rang him up recently stating that they were taking the mortgages off interest only. The said person played hardball and told them that - that was all they were getting, that things had not changed - take it or leave it.....the banks agreed. 

It seems that some banks agree to conditions differently than others. Do ICS generally have good customer satisfaction ratings ? I would have not thought so !


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## Robin Banks (14 Jun 2011)

I'd walk away from it. Why would you be bothered. Detatch yourself and look at it from a bean counters perspective. Post them the keys and good luck in New Zealand.


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## Greta (14 Jun 2011)

How long are you going to NZ for? If you are sure you won't be moving back to Ireland or another EU country for 12 years, then walking away is a very good option.


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## theoptomist (14 Jun 2011)

Post the keys back, and when they ring you looking for the mortgage tell them you will get back to them in august 2012 because its not your policy to give an answer straight away..


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## siofra (14 Jun 2011)

thanks for replies.. ...We are moving for good and will not be returning to live here. Greta can you please explain the 12 year time frame on Ire/Eu country? With regard to ICS I have been trying to communicate unsuccessfully by mail with them . That was the reply I received from them today with regard to my last correspondence . I had only wanted to put in one application for an interest only loan They have offered no options or solutions . I will be writing to them to confirm what I was told today by phone. Funnily when I asked the officer what would happen if only have enough for to pay the interest. He said that they might suggest putting the house on the market ! When i queried this he said i was trying to put words in his mouth. The house is in an unfinished development so not likely to sell .I am trying to be as detached as I can with regard to this but it is very hard. Lots of people have suggested that we walk away from it but i dread the thought of the knock on the door down the line. Siofra


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## who ru (14 Jun 2011)

i think the 12 year time frame is a reference to the bankruptcy law in ireland which makes you liable for the outstanding debt for a period of 12 years. i think it's 2 years in the uk. 

http://www.keepingyourhome.ie/


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## Greta (14 Jun 2011)

I am open to correction but I think 12 years is the statute of limitation on mortgage debt; it's 6 years on unsecured debt. It's the same in the UK. 

That is, if you don't acknowledge your debts or make any payments in the meantime.

I suggest you get legal advice now, to see what is the best option for you.


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## doughb (15 Jun 2011)

S.

Sorry to hear about your troubles. I moved over to NZ about 18 months ago (Auckland) so I would be happy to answer any questions that you may have. (just PM me)

Leave the house. Start afresh in NZ.


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## who ru (15 Jun 2011)

while understanding the human emotional side of this story, walking away and leaving the country means that others will have to pay that bill since the likes of ICS and others are dealing with huge losses on their mortgage books.

we the citizens and taxpayers of Ireland are footing the bill for all these bailouts as everyone knows, the more people walk away, the more we all end up paying. for that to happen, some service, somewhere else must be cut, since the money that would have been available to provide it must now be put to covering the losses of these institutions.

by the way, all of the extra tax generated by the universal social charge ( which really is an amalgamation of various levies) is almost going entirely to service the interest on the national bailout. that money is not staying in the country.

for one to gain, another has to lose.


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## Pope John 11 (15 Jun 2011)

who ru said:


> while understanding the human emotional side of this story, walking away and leaving the country means that others will have to pay that bill since the likes of ICS and others are dealing with huge losses on their mortgage books.
> 
> we the citizens and taxpayers of Ireland are footing the bill for all these bailouts as everyone knows, the more people walk away, the more we all end up paying. for that to happen, some service, somewhere else must be cut, since the money that would have been available to provide it must now be put to covering the losses of these institutions.
> 
> ...



Yes, good point but you don't see the bankers & the developers concerned about the needs of the rest of the public in this country. In fact I'd go as far to say that they are probably still enjoying themselves, still spending money etc.


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## Bogliving (17 Jun 2011)

What would happen if you come back to Ireland say to visit family after a couple of years? Would you be picked up at passport control?


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## Greta (17 Jun 2011)

Bogliving said:


> What would happen if you come back to Ireland say to visit family after a couple of years? Would you be picked up at passport control?



This seems to come up regularly here. No, nobody is picking anybody up at passport controls over unpaid debts in this country! NOTHING would happen.

If OP inherits some money in Ireland before 12 years are over, that can be targeted by her creditors. But she is free to come and go as she pleases, non-payment of private debts is not a criminal offence.


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