Is it likely I will be able to easily lengthen term?

[Mrmr]

We have 160k/13 years left. Always been paid on time, no problem, 5 years (but at the expense of almost everything else!)

Pretty sure after this Budget, we won't be able to meet everything any more as we've reduced everything else. And having gone through everything, it would be ideal if we could simply increase the term.

Is it that simple? AIB have on their page about mortgage difficulties that there are options and this is one- seems like a no brainer.
Are they going to try any funny stuff like removing our very preferential tracker etc?

 

[orka]

The fact you are on a very good tracker might make it less simple than it otherwise would be - banks lose money on trackers so the quicker they are paid off, the better for the bank (and vice versa in what you are hoping to do). Are you young enough that you still have plenty of working years to extend past 13 years (18 years seems quite a short repayment period to have selected in the first place - why was that)?

That said, if you can't pay, you can't pay - so an extended term is better for the bank than interest only or less than interest only. After the budget, you should set out your household budget (maybe get help from MABS) and present it to the bank with your preferred course of action. They might resist but as I said above, a slower repayment of capital is better than no repayment of capital or you slipping into interest arrears.

 

[Mrmr]

Are you young enough that you still have plenty of working years to extend past 13 years (18 years seems quite a short repayment period to have selected in the first place - why was that)?

Yes, we have 25 years total to 65? We are hoping to use all 25 to extend.
We went for a short term 5 years ago when things were good and we could afford that, but the last 5 budgets and some unemployment have messed up our repayment plans.

After the budget, you should set out your household budget (maybe get help from MABS) and present it to the bank with your preferred course of action. They might resist but as I said above, a slower repayment of capital is better than no repayment of capital or you slipping into interest arrears.

You are quite correct, I rang the bank this morning and they are sending out the Standard Financial Statement paperwork which we need to prepare and go to the branch to discuss our proposal. They submit to head office and we should have a decision 4+ weeks later.

Seems simple enough? Though maybe the resistance will be after we submit the paperwork.

 

[demoivre]

Seems simple enough? Though maybe the resistance will be after we submit the paperwork.

There might be but in that event you should be looking after your own interests first. If you can cover the interest payments on your mortgage you should be able to stay in your home .

We have 160k/13 years left. Always been paid on time, no problem, 5 years (but at the expense of almost everything else!)

You have only one chance at life and I wouldn't do this for anyone - not a hope !

 

[Mrmr]

Thanks Demoivre. It's just the way we were brought up to never get in arrears, pay everything off etc. I'm only starting to realise now that this is no way to live, so something has to give.