How likely is a restructure?

[Mackemdub]

Hi all

Due to a number of changes in circumstances recently we are in a position where our mortgage is pretty much unsustainable. Last negative change was losing €350 a month in TRS, mortgage now c€2,850/mth.

O/S mortgage c€525k
House Value c€450-475k
No arrears, perfect payment history since mid 2008
23.5yrs remaining
4.35% SVR

My wife has been on maternity leave with 2nd child since last March and for a number of reasons has had to extend this indefinitely so income down to c€4.5k/mth (assuming I can take wife's tax credits etc)

Other outgoings (as per a SFS i'm messing with) about €2,300/mth as no longer paying for childcare.

We have about €60k in a savings acc which is effectively a loan from my parents to help us through some troubles (with no rigid repayment requirements). Using this to pay for big ticket items (car insurance, car tax, TV license etc) in single lump sums to try to further reduce monthly expenditure.

My question is what are our chances of doing a restructure with lender (Haven)?

i realise that we're in a reasonably good position as far as negative equity goes but payments are unsustainable. I'd be worried that the bank would just say sell up which would be a relatively small loss for them, we do not want to sell family home.

As we (technically) have money in the bank will they just tell us to push out the term? I reckon this would save us about €250-300/mth.

I'm not looking for a write down here, just an easing of monthly payments which would not adversely impact on future payment levels.

Any advice?

Many thanks

 

[Mackemdub]

just as an addendum to this, i contacted IMHO today who have asked me to provide the SFS etc to do an assessment.

would still welcome any thoughts or advice.

thanks

 

[Gerry Canning]

just as an addendum to this, i contacted IMHO today who have asked me to provide the SFS etc to do an assessment.

would still welcome any thoughts or advice.

thanks

Do the SFS properly and give it to IMHO.Please ensure to do it properly.
You will then have a handle on were you really are.And IMHO have the expertize.

K525 4.35% interest only circa 1900 a mth.
Paying interest only for a few years may give you breathing space.
Does wife intend to go to paid work? Are your income chances on the up?
That said, that leaves 2,600 to live on and repay parents.

 

[Mackemdub]

thanks Gerry

i intend to do the SFS properly - when i said i'd been 'messing' with one, i'm using the PTSB excel version whilst i get full grasp of my expenditure

yes, €1,900pm would give us breathing room but i'd be concerned about going interest only for any significant amount of time. but i realsie that we're certainly not in the worst of positions so options may be limited.

Re wife's return to work - very much up in the air as once childcare costs x2, travel to work etc is factored in the net gain is negligible, i wonder though, would the bank insist on her returning even if it is a small net gain? my own income is only likely to increase at about 2% pa so nothing significant