BOSI rebuff on MARP

T

TOMDOOLEY

Registered User
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4
Hi,

I recently applied to BOSI via Certus for an extension to my mortgage term in order to lower my monthly payments but was turned down as based on SFS I can afford the 1900 pm and that I am now outside of MARP process. I really don't understand why BOSI wont agree to extending the term as its in their interest to avoid me going into arrears.

I also proffered 2-3 other options such as 1 year of paying interest only or at minimum 3 months, my monthly payments are 1900 pm and are not or never been in arrears

We have 4 main other loans such as CU and CC and Bank term loan all in good standing but finding the going tough with little room to keep pace if something should go wrong.

Do I have any other recourse with BOSI now that they have said no without really engaging in any meaningful way despite me being a very good customer for over 10 years.

Any advice welcome...
 
TOMDOOLEY said:
We have 4 main other loans such as CU and CC and Bank term loan all in good standing but finding the going tough with little room to keep pace if something should go wrong.
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In order to avail of MARP protection you must prioritise your mortgage payments above other debts. BOSI have no interest in extending loans and if they have excluded you from MARP you have no real alternative option if you want to avoid further action being taken against you.
There is a risk that BoSI could impose penalty interest rates on the arrears portion of the loan. I have no practical information on whether they will do this. It is unlikely that possession proceedings will be taken against you if you continue paying a realistic regular amount to your mortgage!
 
44brendan said:
In order to avail of MARP protection you must prioritise your mortgage payments above other debts. BOSI have no interest in extending loans and if they have excluded you from MARP you have no real alternative option if you want to avoid further action being taken against you.
There is a risk that BoSI could impose penalty interest rates on the arrears portion of the loan. I have no practical information on whether they will do this. It is unlikely that possession proceedings will be taken against you if you continue paying a realistic regular amount to your mortgage!
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Ok, thanks Brendan, if I was to pay for sake of argument 1kpm via Certus would this be reflected in my ICB record, I guess it would, Im heading for 60 and despite having a 100% record at my age would it matter an awful lot if in good standing with other lending institutions
 
Hi Tom

I presume you have a cheap tracker mortgage? As such, extending the term will cost BoSI money. Also, they want to get out of Ireland as quickly as possible, so it's not in their interest to reschedule loans.

And to be fair to BoSI, they are right to insist that you pay your mortgage ahead of your other loans.

Brendan
 
Brendan Burgess said:
Hi Tom

I presume you have a cheap tracker mortgage? As such, extending the term will cost BoSI money. Also, they want to get out of Ireland as quickly as possible, so it's not in their interest to reschedule loans.

And to be fair to BoSI, they are right to insist that you pay your mortgage ahead of your other loans.

Brendan
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Yes I do have an ECB Tracker, don't get me wrong I am all for paying your loans and meeting your obligations but sometimes financial institutions can be short sighted in not offering a relaxation of monthly payments until such time as one gets other loans under control, I don't have an issue paying any shortfall thereafter, I have been thinking of switching to AIB where I could get a good VAR based on loan to value ratio, that would mean circa 1200 PM as opposed to 1900 pm but period number of years outstanding on mortgage would go from 6 yrs to 9yrs as given my age I would need to cap it at that, of course that means giving up the tracker. House is worth circa 400K and mortgage remaining is circa 110K. Would I be mad to do that?
 
If you have a mortgage of €110k, you would be paying around an extra €2k a year in interest by switching from your tracker.

Can you not try to reschedule the other loans?

Brendan
 
Brendan Burgess said:
If you have a mortgage of €110k, you would be paying around an extra €2k a year in interest by switching from your tracker.

Can you not try to reschedule the other loans?
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This is good advice Tom if you want to avoid the hassle that will arise if you fail to meet your required monthly repayments. The difficulty you have with approaching another institution is that if you are a PAYE employee no bank will extend a mortgage beyond age 65. Also as BB has pointed out there will be a considerable interest premium in switching mortgage provider.
 
Loan of €110,000 over 6 years. Repayments of €1,900 imply an interest rate of over 7%. Something wrong there ?
 
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