# Application to Bank of Scotland for restructure



## Walt (7 Oct 2013)

Income details EUR800 pw net from employment

Income history: self employed bricklayer until 5 yrs ago when we had to move overseas to find work.
Net income partner/spouse: currently on unpaid maternity leave
Income history: spouse previously in employment but we have moved to a small unit as only one working presently
Amount of child benefit - none
Amount of Mortgage Interest Supplement received (MIS is the social welfare payment to unemployed people, don't confuse with TRS) none

2 adult family
Do you need a car for work or do you use public transport? One car which is needed for work
Number of children 0- 2 years old: 1
Number of 12 - 18 years old: 1
Monthly childcare costs: none at present

Home loan
Lender: bank of Scotland 
Amount outstanding: 350,000
Value of home: 250,000
Interest rate: 1.6% on 22k and 1.9% on 328k
Monthly repayment - EUR112.84 and EUR1,729.65
Amount in arrears - no arrears - have been on reduced payments for 5 years almost

Summary of discussions and agreements with the bank- have been applying every six months and paying what we receive in rental of our home which is EUR1050

Credit Card - EUR2,000 - no other loans


How important is retaining the family home to you? 

I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.

What is your preferred realistic outcome? 

In our last application to bank of Scotland, they came back to us asking for us to come up with a solution to the issue of us not making the full repayments.  We wrote to them asking them to consider a split mortgage or extension of the term.  They said no to the split and said they would get back to us about the extension but that was 3 months ago and I have called them weekly but can get no further information as Certus don't have any to give me.

I am just wondering if anyone can help as far as us agreeing something long term with them or has any ideas on how best we should proceed.  

Also would you think our mortgage is sustainable considering we give the bank more than interest only and provide them with all the rental income?  We are worried they will repossess.  We hope to be able to move back home at some point.

Thanks in advance for any help.


----------



## Brendan Burgess (7 Oct 2013)

This is a difficult one.

You are getting €1,050 rent and paying around half of this in interest. So this is a very profitable investment for you.  Each month, you are reducing the balance by €500. Each year, by €6,000. 

If house prices increase, the increasing house price will meet your reduced mortgage balance at some stage, and you will be back in positive equity.

If you keep paying the rent in full, it's unlikely that Certus will repossess the house.  They may want to, but in reality, they have worse cases to chase first. 

I can't see why they would split your mortgage. This would effectively reduce the interest rate further from 1.95%, which is unreasonable to expect of them. 

Extending the term will help, but we don't know how much, as you have not told us the term. 

What country are you in? Do they have a bankruptcy regime? 

You could consider asking BoS to allow you to sell your home and to write off the shortfall. They might go for it as you have moved abroad and it would be difficult for them to pursue you for the shortfall. 

However, as you have a long term cheap tracker, getting a house worth €250,000 for €550 interest per month is very good value. It would cost you a lot more than this to rent it. 

Stay in constant engagement with them. Follow up with a letter reminding them that they have not replied.  If you make or receive phone calls, make a note of the date, time and the name of the person to whom you speak.

In the unlikely event that they do go for repossession, you will have a good file to show the judge and he will be slow to give them possession of your home. 

If you get back to Ireland and you can start paying your mortgage again in full, they are unlikely to seek/get repossession even if there are significant arrears. 

Brendan


----------



## Walt (7 Oct 2013)

Brendan

Thanks so much for taking the time to respond.  The whole situation is very stressful.  We would really like to hold on to the house - at our ages and with our work skills it's unlikely we will ever be earning enough to be given another mortgage and when we get to go home, we would love to go back to our home.

We are in Australia and have 20 years left but we are in our mid-30's.  We were told by a Certus guy that they were not interested in extending terms as they wanted out of Ireland but on another call we were told that it was something they would consider possibly.  So it's hard to get an indication at all really.  

Thanks


----------



## Brendan Burgess (7 Oct 2013)

Ask for the term extension, and if they refuse, just continue paying at least the rent, and, if possible, a little bit more. 

I think it will take them a long time to get around to you. They may well issue a legal letter, but deal with that if and when you get it. 

Brendan


----------



## Eire2OZ (17 Feb 2014)

Hi Walt

 We are in the same boat. we have the house rented out but it is not covering the mortgage. we put the balance to it from some saving I had from redundancy.we have moved overseas. I want to know how to you are getting on with BOSI today?


----------



## Commercial (17 Feb 2014)

I would look for an extension of the term.
Certus are very busy at the minute, so I wouldnt be concerned about the slow response.
Just keep paying them and you should be fine


----------



## Walt (21 Feb 2014)

We are still waiting on a response - has anyone else been successful in agreeing a long term solution with BOSI?


----------



## Bronte (21 Feb 2014)

Walt said:


> We would really like to hold on to the house , we would love to go back to our home.
> 
> We are in Australia and have 20 years left but we are in our mid-30's.


 
Just want to clear up a few things. Your husband is earning about 41K, and are currently on maternity leave, so you too must have a salary. How much is it? All the Irish rent goes to part pay the mortgage. But there are other costs, how is this managed? Is everything, and I mean everything above board there? You are very far away, who is managing the property for you. What happens if you have a void? Out of both your incomes would you be able to repay more? 

Are you absolutely sure it's the right thing to do to hold onto this house, would you be better off leaving it go and having the shortfall written off? You might never come back? Your latest child may change the way you view things.


----------



## Walt (26 Feb 2014)

I think the 41k was an error on my part with exchange rates -
It's more like EUR650, $1000 a week Aussie.  I am on maternity leave but unpaid.

All above board I am just wondering how we can fix the situation.  We would like to own the house eventually and leave it to our children.

At ages of 35+ I am not sure we would be able to get another mortgage opportunity and we are certainly not going to get money together to buy anything again - advice appreciated.


----------



## Eire2OZ (25 Mar 2014)

Hi Walt

 Have you heard anything from RBOS? did you deal with the bank or the 3rd party


----------



## Walt (29 Mar 2014)

Hey - still nothing finalised.  Am dealing with BoS but through Certus.


----------

