Temporary Interest only Mortgage

[FlippedOut]

Situation:

I have moved from self employed to being an employee, and due to this move, I cannot claim my tax credits until January, which will be back dated and refunded. This leaves us around €430 down a month, something that we cannot afford as were already living on a tight budget as it was. And when I say tight, I mean there is no flexibility there at all. Then to top things off my wife who works three days may have to cut their wages in order to keep their jobs as things have slowed down.

The good news is that we will be receiving a cash gift from my mother in the next few months, which will clear our personal loan and credit card, and will give us savings. We are very fortunate for this to be coming our way I know.

In the mean time I would like to see if we are able to go interest only on our Mortgage for 3 months. This would take the pressure off and mean that we do not fall back on any of our payments. My question is how do I approach the back. I do not want them to think that we are in deep trouble, but also need my ‘case’ to be understood. Should I just be upfront?

Oh and please don’t bother having a dig about, ‘you shouldn’t have taken the mortgage if you couldn’t afford’ etc etc. Our situation has temporally changed, and I want to find the best solution for all parties.

Thanks in advance,

Pip

 

[NorfBank]

Be upfront with the bank, to be honest you will have no choice.

These days many mortgage holders are trying to go interest only so you will have to prove to them why you should be allowed to go interest only.

They will more than likely ask for a breakdown of your income and expenditure. If they feel you can save elsewhere they will decline interest only, if you can prove to them you are at breaking point and there is no room for saving money elsewhere then you should qualify.

www.moneybackmortgages.ie

 

[FlippedOut]

Hi NorfBank,

Thanks a million for getting back so quickly. So its as my mother always said, honesty is the best policy.

I'll post how I get of for anyone looking for the same question in the future.

Regards,

Pip

 

[demoivre]

Situation:

I have moved from self employed to being an employee, and due to this move, I cannot claim my tax credits until January, which will be back dated and refunded. This leaves us around €430 down a month, something that we cannot afford as were already living on a tight budget as it was. And when I say tight, I mean there is no flexibility there at all. Then to top things off my wife who works three days may have to cut their wages in order to keep their jobs as things have slowed down.

The good news is that we will be receiving a cash gift from my mother in the next few months, which will clear our personal loan and credit card, and will give us savings. We are very fortunate for this to be coming our way I know.

In the mean time I would like to see if we are able to go interest only on our Mortgage for 3 months. This would take the pressure off and mean that we do not fall back on any of our payments. My question is how do I approach the back. I do not want them to think that we are in deep trouble, but also need my ‘case’ to be understood. Should I just be upfront?

I'd get an overdraft to tide me over for the 3 months and would leave the mortgage as it is - you're talking about €1290 shortfall over 3 months ! Get an OD for €2k to give you breathing space. Clear the overdraft when you get the money from your mother. Much less hassle imo

 

[FlippedOut]

Thanks for the reply. the shortfall will be much more than that as wife's pay is about to go down. Not sure by how much but looking at the fuguers, it could be quite a bit , and due to the tax issue I am not taking my commission until January. That coupled with the fact we are in over draft already. One of the things to be cleared when the money comes in.