Chilli2015
Registered User
- Messages
- 4
Hi
I would appreciate some advice on our family mortgage, both my wife and i are self employed in our own businesses presently and our income stream is erratic. I lost a well paid job in 2011 due the company i was working in closing and since have been in and out of MARP but have always stuck to the agreed amounts and in fact cleared an arrears balance at the end of 2012 only to fall back into MARP in 2013.
I met with the bank in Feb 2015 to try and get them to agree to a long term solution for the mortgage and the advisor said i should propose a split which i was very happy to go for. However it was refused as the bank said we couldn't afford it. The advisor told me on the phone that they had strict affordability criteria to go by and in their opinion looking at the accounts of our businesses we could not afford the split option payment of €915 per month, he advised me to go and pay the €915 per month for 6 months and the end of that the bank would have to agree to the split. He works for the bank
However they told us we are out of the protection of Marp now and i received a 'Legal proceedings threat letter' today despite having paid 2 months so far of €915 - the split amount. Their wording on the letter says "The arrears above remain outstanding on your mortgage loan account despite our attempts to agree an alternative repayment arrangement with you"
I proposed a viable long term alternative but they refused it - Not sure what to do here, have called them and waiting for a call back, obviously very worrying.
Income details
Net monthly Income self: Erratic as self employed - approx 2k
Income history: I was made redundant in May 2011 and since set up own business where income is up and down - not consistent.
Net monthly income partner/spouse: Erratic as self employed approx 2k
Amount of child benefit received: 2 children x €135 - €270
Amount of Mortgage Interest Supplement received - None
Two adult family
Do you need a car for work or do you use public transport? 1 car
Number of 4 - 11 years old: 2
Home loanLender: BOI
Amount outstanding: €406,000
Value of home: €380,000
Interest rate: Tracker variable ECB + 1.25%
Monthly repayment : €1752
Amount in arrears : €10,617
Summary of discussions and agreements with the bank - In and out of MARP since May 2011, cleared arrears late 2012 and then could not afford full repayment and fell back into MARP in 2013, have always paid the agreed amounts interest only periods.
Overdraft - amount outstanding: €900
Credit Card - amount outstanding :€6800
Credit Card - monthly amount you are paying : €150
Term loan Amount outstanding : €29,100 - no arrears on this - with same bank as mortgage BOI- for business expansion 3 years ago
Term loan term left : 6 years approx (The bank extended the term last year to reduce payment amount)
Term loan - monthly repayment : €485
Term loan - interest rate : 6.74%
Family loan - amount outstanding : €25,000
Family loan - monthly repayment : 0 - whenever it becomes available
Other savings and investments
Do you expect any lump sums in the medium term future? Redundancy, inheritances, injuries awards. No
How important is retaining the family home to you? Which of the following best describes your situation?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
What is your preferred realistic outcome? : The bank to agree on the split mortgage and then when things improve payments can be increased or at the end of the term the house can be sold to pay off the shortfall
I would appreciate some advice on our family mortgage, both my wife and i are self employed in our own businesses presently and our income stream is erratic. I lost a well paid job in 2011 due the company i was working in closing and since have been in and out of MARP but have always stuck to the agreed amounts and in fact cleared an arrears balance at the end of 2012 only to fall back into MARP in 2013.
I met with the bank in Feb 2015 to try and get them to agree to a long term solution for the mortgage and the advisor said i should propose a split which i was very happy to go for. However it was refused as the bank said we couldn't afford it. The advisor told me on the phone that they had strict affordability criteria to go by and in their opinion looking at the accounts of our businesses we could not afford the split option payment of €915 per month, he advised me to go and pay the €915 per month for 6 months and the end of that the bank would have to agree to the split. He works for the bank
However they told us we are out of the protection of Marp now and i received a 'Legal proceedings threat letter' today despite having paid 2 months so far of €915 - the split amount. Their wording on the letter says "The arrears above remain outstanding on your mortgage loan account despite our attempts to agree an alternative repayment arrangement with you"
I proposed a viable long term alternative but they refused it - Not sure what to do here, have called them and waiting for a call back, obviously very worrying.
Income details
Net monthly Income self: Erratic as self employed - approx 2k
Income history: I was made redundant in May 2011 and since set up own business where income is up and down - not consistent.
Net monthly income partner/spouse: Erratic as self employed approx 2k
Amount of child benefit received: 2 children x €135 - €270
Amount of Mortgage Interest Supplement received - None
Two adult family
Do you need a car for work or do you use public transport? 1 car
Number of 4 - 11 years old: 2
Home loanLender: BOI
Amount outstanding: €406,000
Value of home: €380,000
Interest rate: Tracker variable ECB + 1.25%
Monthly repayment : €1752
Amount in arrears : €10,617
Summary of discussions and agreements with the bank - In and out of MARP since May 2011, cleared arrears late 2012 and then could not afford full repayment and fell back into MARP in 2013, have always paid the agreed amounts interest only periods.
Overdraft - amount outstanding: €900
Credit Card - amount outstanding :€6800
Credit Card - monthly amount you are paying : €150
Term loan Amount outstanding : €29,100 - no arrears on this - with same bank as mortgage BOI- for business expansion 3 years ago
Term loan term left : 6 years approx (The bank extended the term last year to reduce payment amount)
Term loan - monthly repayment : €485
Term loan - interest rate : 6.74%
Family loan - amount outstanding : €25,000
Family loan - monthly repayment : 0 - whenever it becomes available
Other savings and investments
Do you expect any lump sums in the medium term future? Redundancy, inheritances, injuries awards. No
How important is retaining the family home to you? Which of the following best describes your situation?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
What is your preferred realistic outcome? : The bank to agree on the split mortgage and then when things improve payments can be increased or at the end of the term the house can be sold to pay off the shortfall