unsustainable morgage

J

joedan

Registered User
Messages
4
today my partner received a call from our lender informing us that our mortgage is unsustainable and requesting a voluntary sale.

I was shocked as we had applied for a long term sustainable solution with one of the main lenders.

Our situation so far is we are on interest only for 2 years. This is mainly due to the fact that there has been two pregnancies and maternity leave along with the fact that my partner is unemployed.

Currently 3 children, another due later this year. Our mortgage is for e380k with 21 years remaining.

We were caught in a difficult position as if my partner worked and childcare was required it would cancel that income. Hence we were only looking for short term relief until the children were at school/ playschool or even until I came off maternity leave and I could do extra work.

I would appreciate any advise or names of any mortgage arrears support groups as am extremely worried.
 

My partner had the same type of call the other day from our lender, but they said to him they wanted us to sell the property to a housing association for us to rent it back off them. We were away at the time and my partner said he did not want to discuss the matter over the phone and would rather meet face to face with someone to discuss it. They offered to either have someone call to the house or we could meet at the branch to discuss it further, and that they would be in touch. Not heard anything back from them since either by phone or letter!
 
Personal and income details
Net (i.e. after tax)I am a public servant. e2,400 net (not full time)
Partner construction and current income nil.
Maintenance for 8 year old child of e700 per month. Hence net monthly income of e3,490
Income history: e.g. Partner can work but with 3 children, 2 under 3 and expecting another would have huge childcare bill

Net income partner/spouse: as above he is not in construction since 2011 but has done occasional night time security on minimum wage.
number of children 3
Amount of child benefit received (Should be €390 per child)
Amount of Mortgage Interest Supplement received (o) e225 mortgage interest relief

Home loan
Lender: AIB
Amount outstanding: e380,000
Value of home: approx. e350,000 to 370,000
Interest rate: variable 4.29%
Monthly repayment currently e1070 since july 2013.( AIBs Figure). Interest only approx. e1350 form july 2011 to june 2013
Amount in arrears Nil. apart form being on interest only

Summary of discussions and agreements with the banke.g. in Marp since july 2011 . Have been on interest only since then.

Other loans and creditors - delete those which don't apply to you

Credit Card e5000


Other savings and investments

e10,000

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.


Any other relevant information

I have higher earning potential. Am professional and could earn e1,000 extra gross per month. It has not been possible over the last two years due to the pregnancies and maternity leave. 4th child due in Jan. Requested a short term split mortgage. Parents will help in interim.
What is your preferred realistic outcome?

Short solution possibly 2 years most probably split mortgage.





For example: "I will never be in a position to repay the home loan. So I want to sell the house and deal with the shortfall"
 
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