# Letter to Underwriters re extending Mortgage interest only



## Lostlady (16 Feb 2011)

Hi everyone. 
Apologies in advance for long post. 
I got some good advice on Money Makeover forum a while back.  Due to changes in my circumstances (reduction in salary, breakup of relaionship where live-in partner contributed to our overheads and to mortgage though it was in my name ) I was having increasing trouble making it though the month on my salary as am repaying  personal loan, large credit card balance and hight mortgage. I also have a college age child to support who lives with me. The advice has been hepful in getting my head above water somewhat though emergency repairs to central heating boiler during big freeze wiped out most of the inroads on CC debt!). Early last year I had approached bank re goinng on to interest only on Mortgage for a period as the full amount is over half my monthly salary. After initial refusals by local branch I appealed and possibly due to good timing was allowed go on to interest only for a year period. Payments are still high (over 900 pm and am currently paying off a missed payment at an additional 100 pm_but am coping a little better with this as opposed to 1500 pm!) I recently called the mortgage section as I'd missed another payment (over Christmas but explained there would be enough in the account when they 'recalled' the direct debit in 10 days time). During the conversation I asked about extending the period of Interest only as if anything this year my income is even less (Universal Social Charge, more college expences, reduction in working hours) and they suggested I write a letter to the Underwriters requesting this. I was in a huge panic last year when I spoke to the contact there who was very helpful but can't recall her name. My questions are (a) does anyone have a 'standard wording' of such a letter or am I better 'pouring my hear out' as I'm doing here? and (b) what are my changes of getting it (is Ulster Bank mortgage that was procured through broker and tbh I was 'over sold' in terms of my income at the time which was better than it is now? Thanks in advance folks.


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## wbbs (16 Feb 2011)

They wont be interested in the pour your heart out type of letter but more in the hard facts.

Do up a budget, maybe use the template on the MABS website, if this shows you with an inability to pay the full payment then hopefully they will extend the interest only.   However the final figures must show you can pay the interest only, in other words if you do a budget and include your repayment of 900 p.m. and still have a shortfall after than then unless you can show how you will deal with the shortfall you could have a problem.   For example lets say the budget after everything shows shortfall of 100 p.m., thats fine, you could say I will cut back on petrol, sky, phone etc to make that up, it is not too big.  However if the shortfall after all expenses is say 500 p.m. then they are less likely to agree as you will be unable to make that up so they cannot be seen to agree to an unmanageable proposal.   Make sure you have already decreased anything that can be cut such as Sky for example to basic package.

Send in letter outlining your proposal to continue interest only for further 6 mts (it can be reviewed again then) and enclose budget, assure them that should circumstances improve you will advise them immediately.

Alternatively make an appointment in your local UB with the Flex adviser and they have a process for dealing with this.  Again make sure your budget balances.


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## Lostlady (16 Feb 2011)

Thanks for that Wbbs - sounds like the way to go - I had done breakdown for them last year so can prepare similar. I have already got rid of stuff like Digital TV etc but need to keep broadband as occasionally work from home. I'd love to remember the name of the woman I dealt with over the phone the last time as I found her easy to speak with during a very stressed time but as I can't, do I just write something like 'For the Attention of the Underwriter' on the letter? I did go to 'local branch' initially (one nearest work not where my account is) and that was when I was turned down so felt I had a better outcome with going to the UB Mortgage centre but perhaps this has changed now (initally met them in Sept 09 and spoke to mortgage centre in early 2010). They granted it in part (I think) so I could clear some of the debt on the CC (which hasn't gone as well as I'd hoped) and also because I'd missed a payment (now being repaid at 100 pm). I could be wrong about being so wary about my own branch - maybe things have changed? Does anyone know now if people have better outcomes by going to branch as opposed to the Mortgage centre of the bank? Sorry for waffelling on - am feeling very stressed at the impending restoration of the full payment which I genuinely can't cover on my current monthly salary.


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