Chased for UK loan in Ireland

Toadie04

Registered User
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Hi,

Hoping someone can help me with advice.

I moved from Ireland to the UK in 2008 during the recession. Long story short, my mother doesn’t have a permanent job but has steady income. I co signed a loan for her in 2004 and 2009 and it was all paid back, no issue. I didn’t hesitate when she needed me to do the same in 2014. However, she stopped paying and as I was liable I was responsible for paying it off. I ended up taking a loan out in the UK to clear my Irish debt as it was unmanageable to send monthly payments back to Ireland.

I took out an unsecured loan in the UK for £30,000 in 2015 to clear the Irish debt. I was then paying this off every month. I was made redundant in early 2016, however was able to secure temporary work and continued to pay the loan.

I then became pregnant and was in a temporary job and therefore not entitled to maternity leave. I was entitled to €135 stars maternity per week. This was not near enough to pay rent, bills etc for me in London let alone a baby. So I relocated back to Ireland to be closer to family.

I have always been very good with money (aside from the stupid co signing mistake!) so had saved quite a bit to put towards a house myself and my now husband were building and have continued to pay off the loan until Jan 2019.

With me not working paying rent was crippling us so I ploughed all the savings I had left into the house to get out of renting. I had some sporadic temporary employment which allowed me to keep paying the loan and I though I’d get a job and then be able to continue to pay the UK loan.

I’ve since had a second baby so I’m out of employment.

With not having a job my husbands salary is just about enough to cover our living costs and his own car loan. There’s no way we have enough to pay the UK loan.

I’ve contacted the bank to restructure it and reduce the payments but the bank are not interested in it.

I wasn’t able to make Jan and Febs payment and won’t be able to make the March payment either.

I’m in contact with a MABs who are great but can only offer very basic advice and can’t do much more with the loan being in the UK.

Basically I’m looking for information on whether or not the UK bank (Barclays) will chase me here in Ireland for the loan balance of approx £11500? What can they do to me here? I’ve been advised by MABs to give them my Irish address. I’ve sent them a letter saying I’m liaising with MABs and would contact them soon.

Ideally I’d like to make a much more reduced payment for the next few years until I’m back in full time employment and then up it.

MABs we’re advising me to make a nil offer to the bank and apply for a DRN here as my income is nil. They’ve basically said let the UK bank chase me here and then apply for a DRN.

I’m really not wanting to go down the DRN route as I believe in paying back what you owe.

Does anyone know what would happen to me here if the UK bank did decide to chase me here?

Would my house be at risk even though the loan was unsecured? The house has been built on my husbands family land which isn’t in our name so I do believe it is technically owned by my FIL. Even though I applied for planning permission in my name I do t think that constitutes ownership of the house.

Would a UK bank be able to come after my house?

How long are they allowed to chase people for debts?

I’m sick to the pit of my stomach thinking about it.

Sorry I’ve written an essay!!!
 
I can't see a British Bank chasing you for a relatively small sum in Ireland. The cost would simple be too high to be chasing such a small debt in a different jurisdiction. Offer to pay them x amount per month, the minimum you can afford and don't let it stress you. Not a hope will they be able to get hold of your house. So put that possibility out of your mind.
 
Mabs, the experts, have advised you to make a zero offer to the UK bank. I don't see why you don't do this. Seems highly unlikely that they will chase you. You have no assets and no income.

If you wish to pay it back, then tell them you will pay x amount per month and negotiate with them to pay no more interest.

How did you get a mortgage on a property you don't own. You are correct planning does not give you ownership rights. This is far more of an issue than the money owing to the UK.
 
Thanks for your replies.

MABs have said they don’t really know what could happen as it’s a UK based loan and if the loan was an Irish loan they’d advise me to make a nil offer on that so that’s where that came from.

Which I supppse would make sense when they’ve rejected a monthly offer of €100 or to restructure it.

I was going to just put €1

I do want to pay, ideally I’d just like to take a year off or reduce the amount to about €100 per month for a year or so as that is manageable but they are not interested in this at the moment.

Regarding the mortgage, we don’t have one. My husband had a property which was sold and the profit from this and savings meant all he had to do was take out a personal loan to complete the building of our house. You don’t need to have the land in your name to build the house. The local authority only require proof of ownership from the family member who owns the land and a letter stating he was gifting us the site. When we have the money we will get it legally put into our name.
 
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