Consolidating mortgage arrears

M

mike79

Registered User
Messages
17
Hello,
I'm hoping I can get some guidance on my own situation.
We have a Mortgage with one of the main Irish lenders, we are in arrears of approximately €5k. The lender has offered to role the arrears into the mortgage.
As banks hardly ever seem to do anything for the good of the customer, I'm left wondering, what are the implications of persuing this offer?
I can see that from their statistics point of view, its one less account "in arrears" for them.
And from my own point of view, I wouldnt be paying interest on the amounting arrears.
Having said that, with all the forthcoming happiness thats due in the form of reduced wage, homeowner tax, water charges, increased food prices, health insurance, cost of gas and electricity etc - I'm in no position to say that this time next year I won't be looking to do a deal with my bank in relation to the cost of my mortgage / keeping my home.
Would, in your opinion, agreeing to this deal lessen my chances of such a resolution if one were required?
I was in with MABS some time ago and while we did not discuss this deal at length they did not seem enthused with it.
 
You just end up paying more interest in the long run but if you have no way of paying off the arrears then there aren't many options really.
 
Thanks for the reply, I realize the implication of the additional interest, I am however more concerned about possible implications of taking this deal and then (the increasingly likely) possibility of having to go to the bank to work out some type of deal - as I would 'technically' no longer be in arrears.

My paranoid self thinks its just a ruse to get me off the 'arrears' list before the insolvency wave hits.
 
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