# Refused mortgage extension



## Cloxatikkin (16 Jun 2016)

I have just heard from Tanager that we have been refused an extension to our mortgage.  

My business collapsed during the recession and we went on to interest only payments from February 2010.  We then increased payments to €400 pm as agreed with Bank of Scotland from October 2010, which  were increased to €600 pm in February 2015, then €650 in April 2015 and now €750 pm since January 2016.  We have never missed an agreed payment.

The mortgage should have been cleared by September 2016.  I am 62 years old.  We currently owe €59,000 on a property worth around €220,000.  Interest rate is 1.5% or around €75 per month. We made a proposal to repay the debt within five years (my income is increasing due to a new growing business and we have virtually reduced all other debts incurred at 2010).   Verbal communications with Tanager indicated that they were going to recommend to their credit committee an extension to 2023 (seven years) repaying at around €720 pm, which is in fact less than what we are currently paying.  We also verbally agreed to naming Tanager on our life cover policy (joint cover of €80,000) as extra security.  However, it now seems that the "credit committee" have rejected these proposals and I guess they will now move to repossess.

We have always engaged with the mortgage companies and sent them all documentation as and when requested.  We do not want to quit our family home.  What are our options?  Your advice is appreciated.  Thanks


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## 44brendan (16 Jun 2016)

Cloxatikkin said:


> However, it now seems that the "credit committee" have rejected these proposals and I guess they will now move to repossess.


No way will they move to re-posess based on the info you have supplied. See commentary on various posts by B Burgess re re-possession stats. You are entitled to appeal the decision made by the Credit Dept and should now write to the appeals committee outlining your case broadly in line with the above summary and requesting that the decision be reversed. Even in a worst case scenario if the appeal is rejected no Court will grant a re-possession on the basis of your continuing to meet payments at the level indicated by you.

I am constantly shocked by the crass and frankly stupid decisions made by the credit personnel in some of our banks. Life is hard enough for those trying their best to deal with their obligations without having to put up with this type of response!


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## Cloxatikkin (16 Jun 2016)

Hi Brendan.  Many thanks for your reassuring reply.  I have 20 days to appeal.  I have also been in touch with Step Change and they indicated that they will assist me in presenting my appeal.  Will let you know how things go.  Thanks again.


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## Cloxatikkin (4 Oct 2016)

44brendan said:


> No way will they move to re-posess based on the info you have supplied



Well the clock has stopped ticking, the deadline to repay our mortgage has arrived and I have been informed today (from StepChange) that Tanager have decreed that our mortgage is "unsustainable."  Since my last posts above, you will be interested to know that we at no time received written confirmation from Tanager that our earlier proposal was rejected.  We only found out by accident when the girl on the phone told me there was a note on her computer.  Despite various phone calls to Tanager requesting their decision in writing, we have had no correspondence since June 16 (my first post above.)

We since put everything into the control of StepChange and we agreed that they make an offer on our behalf to repay at €1,050 per month, completing the repayments in five years.  (My business continues to grow steadily making these repayments very affordable.)

Tanager have rejected this and it now seems that we must sell.  We will be able to trade down (we now owe €56,000 on a house worth around €220,000 but we will likely be forced to move out of Dublin, meaning we will both lose our businesses (my wife has a music school and I have a substantial cleaning business now built up in Dublin.)

Do we have any options left?


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## Joe_90 (4 Oct 2016)

Have you tried another bank?


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## TLO (4 Oct 2016)

You have quite a good interest rate, 1.5%.  Might be worth sticking with Tanager.  All this talk of "you must sell" is hot air.  Tanager are trying to accelerate the repayment of this mortgage to make their own ledgers look better.  And no judge is going to give Tanager a possession order whilst you are making payments of €750 a month on an outstanding balance of €56,000.  There are folk out there who haven't paid a cent in 5 years or more and the banks still haven't obtained possession.  Just keep paying €750 a month.  By the time this gets in front of a judge, if it ever does, you will have the mortgage paid off.    

Noting that you say you can afford €1,050 a month why not save the difference of €300 a month in the credit union?  That way you will be able to afford legal representation in the unlikely event that it is needed and/or have a pot of money to negotiate with.


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## Cloxatikkin (5 Oct 2016)

Joe_90 said:


> Have you tried another bank?


I talked to Ulster Bank a couple of years ago to see if we could remortgage with them.  I never even got my free cup of tea as advertised!!  He reckoned that due to my age neither they nor any other bank would consider us.

A bit frustrating.  I am in very good health and work very hard at physical work.  The American people are set to let their country be ruled for the next four years by someone who is at least 69!  Why can't I get a mortgage for the next five years?



TLO said:


> That way you will be able to afford legal representation



Would you or anyone have an idea of what the legal costs would be to fight this case?  And how long would it drag on?  Thanks for your replies


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## Steven Barrett (5 Oct 2016)

This is bullying from the bank. Listen to what has been said previously, they have no hope in getting you out of your home if you are repaying them at the rate you are. The courts won't grant a repossession order. Just keep making your repayments and don't panic.

Steven 
www.bluewaterfp.ie


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