Bank want us to remortgage for another 26 years

S

solo1

Registered User
Messages
8
We have a predicament .

We are in arrears on mortgage to tune of €7,000. We only have 7 years left on same but as wife is only one working we are only able to make half of mortgage.

We have been given ultimatum to remortgage for a further 26 years so as to make repayments.

Is this fair? should we refuse? what if we do?

Any suggestions?
 
You will need to provide details of o/s amount, repayments, income ect. Is it tracker?

Surely you should consider it a good result that the bank are offering you something that if your circumstances change you can overpay and get it cleared faster.
 
cashier said:
What remortgage for another 26 years....... that is not a good deal in my honest opinion. Of course the OP has to provide more details but 26 more years imagine the profit the bank would make.
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If the bank are offering this at the same interest rate then it is a good deal. There's nothing to stop the OP overpaying if their circumstances change for the better. If the OP cannot afford their mortgage, the only other option would be eventual repossession.

Of course, if the bank were increasing the interest rate, it's a bad deal - but I highly doubt they are doing this.

In my opinion, people should view the term set by a bank as a MAXIMUM TERM, not a TARGET TERM. The longer the maximum term offered by the bank is, the more flexibility the mortgage holder has to decide how little or how much to pay off annually.
 
solo1 said:
We have been given ultimatum to remortgage for a further 26 years so as to make repayments.

Is this fair? should we refuse? what if we do?
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We cannot tell if it's fair or not or whether you should refuse or not until you give us more details.

Given that you cannot afford the current mortgage and are in arrears, talk of 'being given an ultimatum' seems over the top when it actually looks more like a solution for both you and the bank.

If increasing the mortgage to 26 years wipes the arrears, puts you back in the black, makes the mortgage affordable, and lets you stay in your home, what's the problem?

Another way to look at it is could you with this new repayment amount rent somewhere of as good a standard.
 
Take the deal. If you can also put some extra monies aside then all the better. You can then decide what you are going to do with the extra cash. You might even decide to make a lump sum repayment off the loan, reducing the term or reducing the monthly repayment. This is just a step to regularise things. In a few years take another step when you are more in control of the situation.
 
Solo1.

From what I read all that has happened is that your Bank has (stretched) your payments out for a long time. It means you keep your home. It means they get paid.
It stops (threats) and should stop your worry/stress.
I agree with Soylent.

I assume the new repayments are NOW affordable by you.

So if you can afford the new repayments it becomes a win-win.

Also you can hopefully pay it off earlier.
 
Sorry should have pointed out that we owe €111000 plus approx €7000 in arrears. As such we are not in neg as house is worth 185000
 
The tone of the OP makes no sense as it would appear that the Bank have examined all evidence provided and have offered a repayment solution within the current capacity of the OP. As circumstances improve the OP can increase monthly repayments and clear the facility over a reduced timescale. I think the protest was made on an assumption by the OP that they were tying themselves into a 28 year term.
 
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