mortgage moratorium

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pinkie123

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I am luckier than most people I know in that I can afford my mortgage repayments, and have a good salary even though I am in shocking negative equity. But I am happy living in my house so I try not to let the neg eq bother me.
My question is fairly simple, is it worth my while asking BOI for a 3 month moratorium in order to clear some short-term credit card debts, mainly due to a huge vets bill earlier this year, to which I don't think I will recieve an insurance pay out.
Basically my CC is about 4K. A moratorium of 3 months will give me €3600 to pay this back. I am debt free then apart from very small car loan and of course the mortgage. I am trying to pay off the CC debt but the high interest is killing me, I pay a large lump sum and then am short at the end of the month and then take €100 from the cc give or take a few quid. So paying off €300 a month off the CC will take forever!!
The way I see it taking the mortgage holiday it will be gone in 3 months and then I am clear.
Am I missing something? Or am I mad to take the moratorium when it is not really necessary i.e. as compared to a redundancy situation.
 
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Your only entitled to a moratorium once ever 10 years. I think it would be better to apply for it when a more important situation arises.
 
thats may be true for some banks but not for BOI - apparently they grant 4 moratoriums over the life of the mortgage as long as they are 12 months apart.
 
your mortgage repayments will go up slightly as well as you are paying off the same amount over a shorter term so bear that in mind.

It could be hard to get approved for it as well as there are so many people applying who are in serious debt, that the banks really need the money coming in from those who can afford to pay their mortgage repayments.

But you'll never know until you try, best of luck! ;)
 
Doubt the bank would allow you stop paying your mortgage to pay back other bills as "they" always say that your mortgage should be priority but you wont know unless you ask.

To know if your are better taking a payment break you will need to know.

1. How much will it cost you you stop paying your mortgage for 3 months ?
2. How much interest will you pay back on the cc to clear it ?
3. Could you get a loan... again how much will that cost in interest ?
 
Pinkie

I think it might be better to ask them to reschedule the loan so that you are paying interest only for 6 months. They might be a lot happier with that.

Brendan
 
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