Do we have to resubmit SFS a second time?

K

Kerrigan

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We submitted our standard financial statement to our mortgage provider regarding elongating our mortgage term; we where turned down on the grounds we that we were deemed to have enough income to cover the monthly debt. We consulted a PIP who said if we applied for a personal insolvency application our lender would most certainly veto it. The PIP agreed that lengthening the mortgage term was in the best interests of everybody and could not believe we had been living on so little each month whilst servicing the loan. We do not want to go interest only.

This might be a sore subject on here but the PIP wondered why we had no basic health policy - simple answer is we cannot afford it. They said we should have factored this into our SFS. We also did not factor in silly things such as the odd outing once/twice a year etc.

We are looking to appeal the banks decision so wonder do we have to resubmit the SFS?

Is a basic health policy considered a luxury that should be omitted?
 
assessment of your SFS is benchmarked against "reasonable living expenses (RLE)" for your family size. I.e. In the bank we generally do not assess individual outlay, but a total outlay which should broadly match up with RLE. basic health cover is generally allowable but other expenses such as those mentioned are covered under the RLE allowances. Your proposal would have been declined as the amount the bank deemed as available to cover loan payments must have been sufficient to cover existing P&I repayments.
If you are not satisfied with the decision made then you have the right to appeal it, but an appeal can only be made on the information already submitted. New information cannot be used as a basis for an appeal.
 
If you don't mind a shot credit record then unilaterally extend the term. If you are paying interest and capital I can't see the bank going the legal route to repossess ! And if they do I cant see a county registrar or judge granting the order. Either way if they do issue proceedings you will have buckets of time to pay them what they want from you.
 
Are there any RLE schedules available to use as a basis for knowing what lenders expect: for example it has been suggested that C&I payments should not be less than 35% of net income: i.e. after tax USC but before anything else including pension plan payments.
The case I have is 2 adults, 3 kids 10,6,3 with 10 hrs a week paid work, rest SW/Children allowance.
Thanks
 
Thank you for all your responses. We have unilaterally extended the loan term and its the first time we have breathed a sigh of relief in a long time. However, the bank have not agreed to this extension; we are still waiting their consent but they did write and say they can seek repossession if we have three delinquent payments.

We are both in our forties with 20 years remaining on our mortgage we have unilaterally (without agreement) extended the mortgage to 30 years and pay interest + capital on the 30 duration repayment.

We will be in our 70's when the mortgage is fully cleared so is it unrealistic to think any bank will go along with this? I presume 65 is the age most will have their home loans paid??

Our mortgage provider is in the throws of waving goodbye to Ireland so they get a bit miffed when any suggestion of rescheduling a mortgage is mentioned.

Any suggestions please on how long we can logically extend for?
 
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