# Asked for financial review by mortgage lender



## CrazyOne (21 Feb 2011)

Hi,

Have not had financial difficulties before and am completely lost now - long story short - bought house a few years ago - house now worth half what we paid - husbands salary half what it was and i'm not working now due to ill parents. Husband also changed jobs in january and although his gross is same as last job his net income is down by €1500 pm. Did a mabs budget sheet - have about 5k income per month and €5,500 expenses - mortgage is €3,400 pm 

Contacted mortgage company last week - they have sent out a financial review form to be filled out. Just wondering if you have any advice and any idea what the mortgage co. response will be? Also what to put in cover letter?
Thanks
B


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## goingforgold (21 Feb 2011)

How can your husbands income be 1500 pm down if the gross figure is the same. The budget cuts were severe, but nowhere near that severe!


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## CrazyOne (21 Feb 2011)

It was a shock - he went from private sector to public so there's the usc, a lot of pension deductions and pension levy - down by 1500.


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## goingforgold (21 Feb 2011)

The USC is the same regardless whether he is public or private sector. If he wasn't already contributing to pension scheme then that would account for a lot. Still 1500 per month seems high!


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## millieforbes (21 Feb 2011)

Is he paying emergency tax?


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## WicklowMan (21 Feb 2011)

If I'm reading into this right, it sounds like forebearance. The Mortgage provider assess your income and outgoings and decide based on these variables to perhaps offer you a payment break or interest only repayments.


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## CrazyOne (22 Feb 2011)

No emergency tax just 4 different pension deductions


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## Bronte (22 Feb 2011)

The bank probably wants a list of your income and expenditure, they will then decide how much you can afford to pay and if you cannot pay the mortgage as you currently do they will offer you interest only or a payment break.  Make sure you list every single item of expenditure.  In your cover letter you can just explain your husband has changed job and that you've no income as you are at home looking after ill parents, same as you posted really.  If you would prefer a payment break or interest only you can put that in.  If you have any ideas on how you are going to tackle the issue going forward (a plan) you can put that in.  

Do you want to do the money makeover thread in order to get ideas on how to make savings?  Do you need to go to Mabs to get help with budgeting, dealing with debt etc?


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## Protocol (22 Feb 2011)

Moving from a private sector job with no pension conts to a public service job would cause a surprise, as public pension conts can be up to 12-15% of gross.

With 5000 per month gross, you could be paying 600 in pension conts.


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## CrazyOne (6 Apr 2011)

I sent in the financial review, a budget sheet from MABS, bank statements and a cover letter explaining the situation - that was end of Feb - haven't heard back - is this usual?  Someone said we will be bottom of the pile because we are not in arrears and are still paying the full amount - should i contact them - don't want to rock the boat either..........


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