Is there a possibility of a trade down?

[needhope]

We purchased our home a little over 6 years ago and like so many others we are now in negative equity. I was made redundant 3 years ago and up until Jan this year I was working but on a contract basis. Since then we have also had our first child. I have always been the main earner in the household and since my last contract was not renewed (I was going on Maternity leave) we have had to live hand to mouth.
We are now in a position that our mortgage payments are much too high for our income. My partners wage is not good and I am now getting basic social welfare. I am finding it very difficult to find a job that will pay me more then I am getting now, when I take into account childcare. We do not have any family close by they all live in another county so we cannot rely on them to help us look after our child.
All of that said, if we could trade down on our mortgage, and reduce our payments, move to a home that would allow our family to help us with childcare and I would then go back to work we would be in a much better position money wise!
How can we approach the bank to work with us on this, or is it not a possibility at all?

 

[Bronte]

You really need to do the money makeover thread if you want concrete advice. How are you currently paying the mortgage? Do you get state support with it. You seem to think a bank is going to allow you to sell and write off the NE, that is highly unlikely, unless you cannot afford your mortgage, and have no assets.

 

[needhope]

Thank you for your reply.

We do not get any state support, because my partner works full time we were turned down. He is working full time but his salary is less then €360 a week. I get 188 and our mortgage is €960 per month. At the moment we are paying a little over half of that €500 as it is all we can afford.

We have arrears on the mortgage, from the last three years when we have been unable to meet payments from time to time. The arrears are now aprox €17000. We were on a five year fixed rate and now rolled over onto a tracker. €960 would have been fine to pay a few years ago before my husband had to take a big pay cut and when I was working in a permanent position.

I will check out the money makeover thread, thank you for your advice.