Like Nuller I availed of the 3 month break and then the extended 6 month break. However, unlike Nuller I had only 15-16 months to go on my mortgage term and a balance pre-Covid repayment break of €16,570. My monthly repayments were €932 pre-Covid now the bank tells me it will increase to €1,586 over the remaining term! I am self-employed and cannot afford an additional €654 per month. I was aware at the outset that claiming the Covid break in the absence of a term extension would lead to higher repayments if the bank was to stick with the original term however, I assumed the bank would have been open to a short term extension for these near the end of their mortgage term.
Anyway, I contacted my bank (BOI) and was immediately referred to their "Arrears Support Unit"!! I got a bit snotty with the guy on the other end saying I was not in arrears and only wanted a short extension to keep my repayments the same. Turns out I have to complete a Standard Financial Statement (SFS) containing a lengthy financial questionnaire. If I complete this I bet they will come back saying I should spend less in the off-license (probably true!), cut out Netflix subs and stop SOs going out to 2-3 charities I support.
I think this level of scrutiny is excessive in the context of only asking for a short term extension maintaining level repayments and an LTV of <5%. I do not want to fall into the hands of the Arrears Unit, God knows what further intrusions or repercussions come with that. I have some deposits earmarked for the young lassie starting college this year and my wife will be retiring next year with a tax-free lump sum of €118k next year. I have a private pension fund too but it is well down from pre Covid (-18%) so, I want to give that a chance to recover.
This seems heavy-handed from BOI just for a short term extension?? It strikes me that this issue of temporary repayment breaks was addressed in the absence of showing the impacts for future repayments, particularly for those with a short period of the mortgage term remaining. Any ideas??