On behalf of a friend. I don't think that this is as extreme a case as some others posted here and the aspirations outlined below may seem unrealistic but all comments/advice welcome. If any further info/clarification is needed just ask. Thanks.
Personal and income details
Home loan
Other loans and creditors
Personal and income details
- Income self:
- gross salary: €3,100
- salary net of tax, USC, PRSI, mandatory pension/superannuation deductions: €2,400
- other income (child benefit, child maintenance, mortgage TRS treated as an "income"): €800
- total net income: €3,200
- Income history: permanent and pensionable on a public service contract, now on certified serious illness sick leave on full pay for 6 months, half pay for 6 months thereafter if applicable and pension rate thereafter if applicable
- Income partner/spouse: N/A
- number of children: 1 (aged 8)
- Amount of Mortgage Interest Supplement received: N/A
Home loan
- Lender:BoI
- Amount outstanding:€222,000
- Value of home: €180,000?
- Interest rate: 4.25% standard variable rate
- Monthly repayment: capital + interest €1,300, interest only €790
- Amount in arrears: €1K
Other loans and creditors
- Credit Union: loan for home repairs of €4,000 @ 8.69% (variable?) secured against shares of €1,000 with repayments of €90 p.m. over a remaining term of 3 years (?) (recently restructured from €6,000 secured on €3,000 with repayments of €230 p.m.). I think that these figures are correct!
- €3,000 child education fund/home improvements fund and firm resistance to using this for other purposes such as clearing CU loan.
- Keeping family home is very important.
- Main problem seems to be the feeling of being stuck in a rut/limbo with regard to the mortgage - i.e. "just" paying interest, not paying down capital, kicking the capital issue down the road so feeling insecure with regard to what happens further down the line. Also the inability to improve structural and cosmetic aspects of the property due to lack of finances.
- Not sure how realistic but ideal would be to be able to pay down at least some of the capital and be able to address some home improvements (some structural, some cosmetic).