Business failed, trading down with Tanager mortgage

C

Cloxatikkin

Registered User
Messages
8
Hi. Just discovered this website. Wish I'd found it much earlier. I would appreciate some advice regarding my situation.

We currently have our mortgage with Tanager (sold on from BoSI due to our arrears.) My business failed during the crash and we are around six years behind where we should be at, which is mortgage- free by 2016. Our property is worth around 200K and we owe around 67K to Tanager. Due to my age we cannot get an extension for our mortgage and so we are exploring the possibility of selling to trade down and clear our debts. My questions are these
1. Is there a possibility that Tanager would accept a smaller sum than the 67K we owe to end our mortgage? If so what sort of figure should be offered?
2. Should we enter negotiations with them directly or use an intermediary who could do a better deal for us? If the latter, where do we find him/her?
3. Do we have to inform Tanager before we put the house up for sale?
It is vitally important for us to maximise what assets we have left. We have no savings and are still paying a reduced mortgage due to low income. To try to replace our family home with one worth only 130K would be challenging as we need to stay in this area and we have two grown up children (son and daughter) living at home, so a one bed appt is out of the question. An extra 10 -20K or more to spend could make a vast difference to what we have to trade down to.

Thanks in advance for any assistance
 
A few questions:

Is your mortgage a cheap tracker? If so, staying where you are will be the best option. If not, what is the interest rate?

What age are you?

Do you have any income at present?

What repayments are you actually making?

What discussions have you had with Tanager and BoSI?
 
Hi Brendan

Our mortgage is variable rate at currently 1.65%. I am aged 62 and have a small income from a new business I started recently. Our present repayments of 600 per month are about all we can afford.

We are in contact with Tanager to continue our restructured repayments. We have no dealings at all now with BoSI. At the current rate of repayment, it would take around 10 years to repay the mortgage. However due to my age this doesn't seem to be an option at least with Tanager. They inform me that as they are unregulated at this time, they are unable to offer us an extension to the deadline (September 2016). I have met with other mortgage providers and they indicate that due to my age and our limited income we would not get financing with them or anywhere else.

In addition, having tried to crawl our way out of credit card debts, credit union loans (all run up in efforts to keep up our mortgage payments) and seemingly endless form filling to renegotiate reduced payments, we just want to be able to enjoy our 'golden years' without a lot of further hassle or pressure.

Tanager have indicated that they might be willing to do some sort of a deal but they won't commit until we have made our proposals in writing. I am anxious to make the best deal possible since this will determine the quality of our next property.

I am assuming that we would be forced to sell anyway to clear our mortgage next year. We have decided to go ahead this year so that we can retain some control over events.

We are not emotionally attached to our home so moving is not a problem. Quality time in our life is more important to us than having a fancy home or a large inheritance for our children.
 
Hi Clox

You have a mortgage of €67k on a house worth €200k
You have an interest rate of 1.65%

This means that the interest on this mortgage is only €100 per month. €67k@1.65% = €1,100

So, you absolutely must resist selling your home.

If you are paying €600 a month , then you are paying €6,000 in capital a year off your mortgage.

Tanager should be happy with this.

They inform me that as they are unregulated at this time, they are unable to offer us an extension to the deadline (September 2016).

That is absolute nonsense. As they are unregulated, they can actually do what they like. A regulated institution could claim that they are restricted, but an unregulated institution can't.

The best way to enjoy your golden years is to stay in your home. Absolutely refuse to pay any more. Tell them that you will pay off the mortgage in full, but that it will take you ten years. It is very unlikely that Tanager would do anything about it.

The only way you should consider doing a deal with them is if your family were able to lend you €30k in which case you could offer them €30k in full and final settlement of the mortgage. It's unlikely that they would accept this though.

Brendan
 
Brendan Burgess said:
Hi Clox

You have a mortgage of €67k on a house worth €200k
You have an interest rate of 1.65%

This means that the interest on this mortgage is only €100 per month. €67k@1.65% = €1,100

So, you absolutely must resist selling your home.

If you are paying €600 a month , then you are paying €6,000 in capital a year off your mortgage.

Tanager should be happy with this.

They inform me that as they are unregulated at this time, they are unable to offer us an extension to the deadline (September 2016).

That is absolute nonsense. As they are unregulated, they can actually do what they like. A regulated institution could claim that they are restricted, but an unregulated institution can't.

The best way to enjoy your golden years is to stay in your home. Absolutely refuse to pay any more. Tell them that you will pay off the mortgage in full, but that it will take you ten years. It is very unlikely that Tanager would do anything about it.

The only way you should consider doing a deal with them is if your family were able to lend you €30k in which case you could offer them €30k in full and final settlement of the mortgage. It's unlikely that they would accept this though.

Brendan
Click to expand...
.......................
Agree 100% with Brendans good advice.

I see no way Tanager will go (after) you.
You do not need , (nor I suspect ) want the hassle , never mind the costs of moving.

Be careful to engage only in writing, on phone calls we are all inclined to say yes!

You will not be {forced} to sell.

Tanager feel they have you on side to sell , they are only concerned at getting their money fast.They do not have any concerns on you selling , its just gimme the money.

I hope you don,t feel too stressed/bullied on this.

Take Brendans advice , please.
 
Just to stress that trading down is a very expensive business and the costs will use up a lot of the equity you would release

  • Legal fees on sale €2,000
  • Legal fees on purchase €2,000
  • Auctioneers fees €3,000
  • Surveyors and moving costs: €1,000
  • Some money to do up new house €3,000
  • Rent paid while looking for a new house - €5,000+
It's also a very risky business and hard to get the timing right

You plan to sell for €200k and buy for €130k. But you will have to sell first. Then if prices rise, you might not be able to get anything for €130k. You won't be able to borrow and you get left behind in rented accommodation by rising prices.
 
Many thanks for your advice. It's greatly appreciated. As an aside, I should mention that Tanager have been very courteous in their dealings with us and they are not at this time pressuring us to do anything. They have in fact been much more agreeable to deal with than BoSI with whom we had endless frustrating phone calls and mountains of unpleasant correspondence.

I agree that 100 eur per month interest is a good deal. However assuming Tanager allow us to stay in the home, it still locks me in to ten years more of running a business or else increasing my workrate to boost my income further and pay the mortgage sooner. My thoughts are actually on retiring and getting a bit of a life before the zimmerframe arrives!
 
Last edited:
Hi Clocks

That is good to hear. Then, I suspect that you misheard this bit

At the current rate of repayment, it would take around 10 years to repay the mortgage. However due to my age this doesn't seem to be an option at least with Tanager. They inform me that as they are unregulated at this time, they are unable to offer us an extension to the deadline (September 2016).
 
Hi Brendan
On reflection you are probably right. When talking to Tanager, I asked them about a remortgage - ie restructuring all that we owed and putting it onto a 10 year new mortgage. They told me that as they were unregulated, they could not offer me such a product. I assumed then from that that the only alternative was to sell to repay by the deadline (2016). However, I did not think that we could just continue as we are in an unstructured way paying as much as we could afford year on year. Your comments (and Gerry's) seem to indicate that I was wrong.

Brendan Burgess said:
The only way you should consider doing a deal with them is if your family were able to lend you €30k in which case you could offer them €30k in full and final settlement of the mortgage. It's unlikely that they would accept this though.
Click to expand...
If we could raise finance privately, what sum do you think realistically they would accept?
 
Cloxatikkin said:
If we could raise finance privately, what sum do you think realistically they would accept?
Click to expand...
Hmm maybe 45k to 50k BUT when you say privately be cautious not to get a personal loan from another institution to get a discount on your current debt. Let's say they accept 45k and you borrow that at 5% to 8% or maybe as much as 12% you would end up nearly paying the same amount as you now owe in interest. The only feasible way would be a loan from a family member at the same rate as you are currently paying.
 
You must log in or register to reply here.
Back
Top