thinking of selling after just 1 yr

M

moc

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hi, we are really in a sticky situation , we bought our house about a year ago, and now with the increased interest rates,car loan, credit union loans etc.. we just cant seem to keep on top of repayments on the motgage, I was reading somebody elses prediciment on going only interest for a while is that possible?? and how long could u do it for??our mortgae payments are 2,200 per month over 35yrs variable?? any help would be appreciated as selling is the last resort.
 
Bit drastic isn't it? What's your monthly income Vs your mortgage.

Before selling your home - sell your car and clear loan. Get a cheaper second hand vehicle if it's really needed with a small engine, small fuel, small tax & insurance. Or use public transport/bike.

Speak to credit union about changing repayments schedule.

Cut down on household spending. Don't go out, don't get takeaways, shop in discount supermarkets, avoid shopping malls for a while.

Got a credit card debt - switch to a 0% for 6/9 months with a rival provider.

Sit down together and go through every inch of bank statement - see where the money's going. If, say, incomes amount to 4k, then you can afford mortgage. Now work out how to live to next paycheck with the rest.

If it comes to it switch to interest only - but I find this avenue fine for investments - not great for the family home.

It never ceases to amaze me how people express horror at a mortgage going up €50, but will spend €200 at the weekend going out.

Not saying that's you btw.
 
If you want some help in looking at your income & expenditure, try MABS (money advice and budgeting service) - I'm sure they'd be delighted to help you before you get into debt problems.

Have a look at www.mabs.ie
 

Another point to note is that at the beginning of your mortgage- the vast bulk of the repayment is an interest repayment. If you were to go interest only for a period, there actually would be very very little difference in your monthly repayments to the mortgage lender.

In addition- were you to try to sell in the current market, you may have to reduce the asking price to considerably below what you paid a year ago to generate interest in the house. This obviously would not be nice from your perspective.

You need to seriously sit down with MABS or similar and look at your finances and see what you can do.
 
thanks a mill im on the right track now, know exactly where to start,
 
try hold on moc, take the advice from posters some great simple to follow advice up there (eddie hobbs would be proud!) good luck with it.
 
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