Restructing Mortgage payments

C

corkmac

Registered User
Messages
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Hi All

Looking for a bit of advice.

Mortgage value €180,000 House Value €250,000 (came down from purchase price of €430,000 in 2007)

Current repayments €1400 per month 13 years left on 20 year mortgage

We are both working but on reduced pay +levies etc.

At present we have no arrears, but finding it very hard to manage once all our bills and commitments (food, fuel for work etc) are made, we are left with 7 euro at the end of the month.

Being 39 and having no social life or money to buy clothes is fairly hard to take.


What options are there for us?? (not selling) ie Remortgage, Split mortgage etc. We were thinking of offering the E*s 1000 per month is this acceptable

Thanks CorkMac
 
Could you approach your lender and push out the term of your mortgage? You would end up paying more interest but would have a better quality of life inbetween times.

It would help if you gave more details - mortgage provider, interest rate etc.. there is a form here you will get more help/advice from others if you can complete this as it gives an overview of your current circumstances.
 
Thanks for your reply

Personal and income details
Net €3,700 pm both working (Public Sector)
Home loan
Lender: EBS
Amount outstanding: €190,000 (20 years 12 years left)
Value of home: €250,000
Interest rate: fixed 4.6
Monthly repayment €1400
Amount in arrears 0

Other loans and creditors - delete those which don't apply to you
Overdraft €2500
Credit Card €4000
Credit Union €8000
Car loan €5000

Other savings and investments

Credit union €4000

How important is retaining the family home to you?

I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
 
I fear the bank will say the other debts are causing the problem and not the mortgage. Can you try and negotiate with the cc company?
By the way, you are doing very well not to be in arrears. The bank are unlikely to offer you any deal or restructure if you are not in arrears.
 
We wrote to the Bank offering them €1000 per month ??. We pay all our bills every month which means we dont go outside the door only to work!!!
 
Do you have 13 or 20 years left on the mortgage? (you have different figures in two posts)
If it's 13, you should be looking to extend the term a few years to ease the burden for a few years. What about the cc? What rate of interest are you paying on the balance? How much per month is going to cc? CU? Car loan? Overdraft?
You need to post this level of detail and what of the spending-I presume you run a tight shop on groceries ? What of utilities?
With equity in your house , have you considered selling? It's an option that you have that many people with large debt don't have-so there is light at the end of the tunnel!
 
Agree, you have done very well to get your loan down to that level. Although I can't see how 190k over 12 years is €1400 per month I would have thought its more like €1700.

I think that the banks won't be willing to accommodate you which is a shame because you are doing you best.
 
As others have already said, your problem here is your unsecured debts, not your mortgage so these are the ones you need to tackle.

You have equity in your home and your income is sufficient to pay your mortgage so its pretty clear that the EBS is unlikely to accept your proposition to adjust your mortgage payments.

If you can tell us how much you are paying monthly on your car loan, credit card repayments and credit union loan we might be able to assist you better.

Your case is not at all comparable to many other cases where the home is in negative equity. You have equity in your home which means the mortgage lender has the upper hand.
 
Sorry its 13 years I was counting thus year as the 13th. 190 was the initial loan €139,000 is what's left
 
Have you tried to restructure your loans?
And credit cards, not your home loan
 
Last edited:
I'm still a young 37 I'm thinking of increasing my mortgage from 13 to 25 years so the payments should come down to around €900 mark.
 
You need the banks permission/approval to do this. You really need to put up the detail on the other loans-they are crucial to you getting any restructure from the bank. A secured creditor will not want to take all the hit on a restructure. What are these loan amounts and what do they cost per month? Have you sought to restructure these? If not, why not? The cc should be the first place to start. Have you cut the card up? If not, you should do so.

Not picking holes, but in first post you said you were 39? It does not matter much but it's important that accurate figures be given to ensure you get the best advice on options.
 
Consolidate the unsecured debts less the CU savings?

Would depend on the interest rates being charged.
 
Credit union car loan €320 4 years left
Credit card 200 per month we pay that and use that amount each
Boi loan 160 per 3 years left
 
Thanks for all the advice and queries regarding my age ;-).

We are meeting our local credit union to discus a Consolidation loan instead of restructuring our Mortgage

CorkMac
 
Good luck with that. You should see if you can get a separate deal from the cc company-some are giving 0% on balances. If you can get that-it would be a bit of a help too. No harm in asking!
Was not being nosey about age-it's just important to put up accurate info. 1st post did say 39. Age could be an issue if looking to extend mortgage to an age beyond 65. (not relevant here)
 
Is there anyway that you could be entitled to a tracker? If you ever had one?? 4.6% is a scary amount to be paying with interest rates SO low. Might be worth a bit of investigation...maybe EBS would be willing to come to a deal?

As stated by other posters, your unsecured debt is what's killing your quality of life - how long left on the car loan, if you could get rid of even one of your unsecured debts then you could use that 'extra' cash to clear down another.. and start to see the light at the end of the tunnel.
 
4.6% would equate to the typical variable rate at the moment though the rate does vary depending on the LTV ratio. While ECB rates are indeed very low at present, most lenders have been steadily increasing their rates on variable mortgages so as to improve their interest margins in an attempt to return to operating profitability. It is a possibility as Wednesday says that the loan contract makes provision for what is to happen when the fixed rate term comes to an end but that is something that can only be ascertained by looking at the contract.
 
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