Can't pay mortgage while off sick - options??

M

Mr Dog

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Looking for some advice, a friend is facing the possibility of being off sick for a couple of months with no income. He will not be able to pay his mortgage for these few months as his OH's income is very hit and miss over the last while and is not guaranteed.

He wants to contact his lender - BOI/ICS - to advise them of the situation. Any advice on how to approach them or as anyone been in a similar situation and what was the response? He is currently up to date on his repayments and has never been in arrears.


He is also worried that the lender will look to increase repayments when he returns to work as he is currently struggling to keep up his current repayments so any increase would be impossible.


He is also worried that his home could be repossessed if he is 3 months or more in arrears!!!!! Could this be a possibility???


Any advice on what to do and how to deal with the situation???
 
If he is going to be off sick will he not qualify for disability from welfare. If his oh is not working full time can they not sign on? Is he not covered by insurance?
 
Thanks for the response .... He will qualify for disability from welfare but this would not cover his mortgage repayment. Besides I would imagine this will be going towards food and household bills while he's off sick!

OH has been signing on but this is coming to an end soon and will be means tested so they won't qualify for anything.


He has no income protection insurance.
 
First of all, he has absolutely no need to worry about losing his house. He won't. The only thing he has to worry about is his credit rating.

He has to contact Bank of Ireland as soon as possible and notify them that he has a short-term problem.

In the past, a phone call would have sorted this out and they would probably have agreed a 3 month full payment moratorium over the phone. Now, he will probably be asked to complete a Standard Financial Statement to apply for a moratorium. The banks are all snowed under, so he might not get a proper response before he goes out ill. He should try to resolve it by phone first, but it will be difficult.

If he gets their agreement to stop or reduce the payments, then his credit rating won't be affected.

He should follow up any phone call with a letter saying that he won't be able to pay and that he is stopping his direct debit until his income recovers.

Depending on his circumstances, they might extend the term of the mortgage to reduce the payments.

He will get a more meaningful answer if he fill out the following

Standard Format for unsustainable mortgage Case Studies

Brendan
 
Thanks for the replies - he had to fill out a product amendment form for the bank - they are now looking for bank statements and payslips which is no problem

They are also wanting a letter from his employer stating they are not paying him and a letter from the doctor looking for details of illness, details of operation etc etc - would this be standard practice ??? He doesn't particularly want his employer or doctor to know he needs the letter for the bank because of his financial position.


The bank did say if the break was approved the missed payments would be spread out over the remaining term of the mortgage in this case 30 years. Is this the best option for him?
 
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