Unsustainable Mortgage(5mths waiting to hear back from EBS)

Personal and income details
Net 2800per month
Income history: This employment is new, since May only...
Net income partner/spouse: No income
Income history:
number of children 3
Amount of child benefit received 390.00per month
Amount of Mortgage Interest Supplement received nil
Home loan
Lender: EBS
Amount outstanding:337000.00
Value of home: 240000.00
Interest rate: Variable, just below 5% I think
Monthly repayment:1605.00 currently paying 1200.00
Amount in arrears:11000.00
TopUp on Origional Mortgage
Amount outstanding: 17000.00
Interest Rate: variable just below 5%
Monthly repayment: 110.00
Amount in arrears: nil

Have been on interest only for 12mths, back in October our term expired on this and payments went back to full amount... I contacted EBS back in March to discuss options as the arrears keep building up.. (most are from a period of unemployment).... No options were really discussed, split loan and mortgage to rent were thrown around in conversations but when I asked them to explain these options I was that there was no point discussing those options at this time......SFS is in with them since March and no offers or options put forward by them.....


Other loans and creditors -
Credit Union e.g. Loan of 6000.00 against savings of 4000.00 repayment of 60per week


Other savings and investments nil


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, but having three children we want to give them some quality of life.


Any other relevant information

Just looking for opinions on what resolutions the bank may be looking at for us......

I should also say that we are 28 and 29 but term is pushed out as far as possible.....

Your Reasonable Living Expenses are around €2,000 a month, which leaves €800 to contribute towards your debts.

The interest alone on €240,00 - the value of your home would be €1,000 per month.

It seems to me that you can't really afford the house you are in. But could you rent somewhere for €800 or less?

If so, you should consider selling the house and escaping the negative equity through a Debt Settlement Arrangement or bankruptcy.

I don't see how a Personal Insolvency Arrangment would leave you enough to live on, yet get approved by the EBS.

What ages are your children? Can your spouse earn some additional income?

Thanks for the reply Brendan. The children are 10, 4 and 1.... We would not be able to rent a 3 bed in the the town or city for less than 1200e I would think.....
We have been paying 1200e per mth for over a year and are comfortable with this amount... Will they take this into account??
When I input our details into the split loan calculator, 240k is just under 1200e....which we are finding affordable....Althou maybe I am not doing it correct. Do you think there is anyway they will offer this based on the repayment history??
Long term, once the youngest child is in school I can then join the workforce, so I am of the view that the we are in this period of unaffordability only for 3 or 4 years approx.???

Did you buy before or after 2009 as that might buy you some time?

We bought I think in 2007.....

Buying before or after 2009 should not make any difference now that the Land and Conveyancing Law Reform Bill 2013 has been passed and is expected to be signed by the President in the coming days barring an Article 26 reference. This legislates to address the uncertainties created by the Start Mortgages v. Gunn decision of 2011 as to the rights of mortgagees in respect of taking repossession proceedings.

Finally a resolution.....

Hi guys, I thought id let those of you who took the time to reply to me that finally EBS have come back with an offer of resolution..... They have offered us a split mortgage... 70k parked and full repayments on 283k at 1300pm... they will consolidate the main and the topup.... and will review in 3yrs.....