Will Banks accept a lesser amount on a mortgage?

What I mean is this, My Mortgage is 260k my house realistically is worth 280k.
There is 19yrs left on the term.
I am on interest only which finishes in November.
My repayments are at the moment 940 euro
In Nov they will rise to 1550,unless an extension is granted.
It is a family home and I have 2 dependents and am married.
The fact is I am unemployed now for 6mths and have been really struggling to keep up but have done up to now by dipping into savings which are now gone.
I do receive a mortgage int supplement which is 705 euro pm.
I dont know how long I will remain out of work but hve been assured that the supplement will remain in place as long as I continue to satisfy the criteria.
Does anyone know if the banks will start Repossesion against me if I can only offer this amount for the moment?
As I said it is a family home and would hope that fact may make some difference.

Re: Will Banks except a lesser amount on a mortgage?

It may be worth speaking to your bank to see if they will extend the mortgage over a longer term to make the repayments more manageable for you? You can always reduce it again later on when you get back on your feet. 260K over 30 years would work out at approx. 1,039 pm(depending on what your rate is at the moment).

Re: Will Banks except a lesser amount on a mortgage?

The best thing to do is to be up front and honest with the bank and seek a moritorium from them. Most banks are understanding in the current enviroment as this is becoming more and more frequent occurence. If they do not give you a moritorium then they should at least extend your interest only period. As with the last poster you could extend your term but at a little more messier and you'll have to change mortgage protection to reflect the new term

Re: Will Banks except a lesser amount on a mortgage?

Nadal, it will be at least 12 Months before anything legal can happen. As lou34 said, get in touch with your bank immediately and make sure they work with you to find a solution.

Re: Will Banks except a lesser amount on a mortgage?

Definitely explain your situation to the bank. Might be worth getting advice off MABS as well.

Re: Will Banks except a lesser amount on a mortgage?

Good advice people I am going to definitely work with them in this situation, hopefully things will pick up in my sector soon and this will all be a distent nightmare!

Check out this post for other people's experience

and this one: "If you can't meet your mortgage repayments"