Business Loan - interest only or payment hol

C

cazmayo

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My husband was self employed last year but work dried up (people not paying and bouncing cheques), so he got a job elsewhere. However on his wage, I am paying a mortgage of 1100 including ins, business loan of 694 and living costs for a family of 2 adults and 2 children. His wages are 650 per week now down from 800, so Im 600 per month short.

As our mortgage is an offset mortgage at 3.16 which is good, Im thinking its the business loan I need to look at and see if there is anything we can do to reduce payments.

We cant remortgage as income not good enough.
Mortgage with First Active and business loan with Ulster Bank, just wondered with them merging if the Ulster Bank could offer a solution.

Thanks
Caz
 
hi caz. well in my humble opinion, the fact that your income has come down won't help your chances much.

you should try your current lenders and then maybe you could try one of the main banks now that they've been recapitalised. if you don't ask you don't get.

if you're really feeling the pressure, you should consider a trip to the local MABS office and have them deal with the banks on your behalf.
 
Hi Billythefish,
I wasnt comtemplating moving banks due to the decrease in wages, just wondered how open they would be to putting the business loan on interest only for 6 months? Do they recognise that the income has decreased and are open to renogiating something?

Asked to go interest only on my mortgage, but First Active said that interest only is not available on an offset mortgage and that I would have to change product and go through the whole mortgage process again, solicitors, valuation etc. I dont want to lose my tracker!!!!

He has some private work coming up, which would be a great relief. He had several jobs lined up prior to Christmas, but everyone got scared about their job security and started cancelling or saying we will leave it a few months.

We are planning on putting our house up for sale in the summer as we want to emmigrate, so just want to elevate the pressure for the short term.

Once we sell the house we will clear everything.

Hi Leghorn,
The business loan is not secured. Its in the limited companys name, however we are personally responsible for payment. Paying it out of his wages, until private work starts up again.

He had to get a job, as a customer bounced a 10,000 euro cheque and he had to do something fast.

Its hard enough with one wage coming in, and then trying to pay a big business loan on top of everything.

Im not working at moment, as I have a 4 yr old, 18 month and baby due.

I will try MABS, though I read there is a waiting list of a few months!

Cheers
Caz
 
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