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Debt Consolidation

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  • 15-06-2010 10:19pm
    #1
    Magicman1
    Closed Accounts Posts: 67 ✭✭


    hey folks,

    Maybe you can give me some advice.

    My wife and i are currently trying to remortage. i know our timing isn't the best but we're going to have a go anyway - it would save us at least €500 per month if we could pull it off.

    We're in our house 3 years, have 27 years remaining on our mortgage of €223,000, we have a colossal credit union loan of €62,000 in a joint account and €11,000 in my accound, there's also €3650 remaining on a credit card. So that means our debts total €300k give or take. Our house was valued last month at €440k.

    All that probably sounds ok but the repayments on all our of our loans are crippling us....we're not behind on anything but, once we pay our bills, there isn't a whole lot left for shopping etc.

    We've been to a lot of the banks - AIB aren't interested in us, also got rejected by Ulster, PTSB, a mortgage broker tried a few more for us....the only ones we haven't tried yet is Bank Of Ireland.

    The reason the banks are saying no to us is down to 2 reasons - the first one is that I am on contract in my job, there's 12 months left in it....also I own a small business - they seem to run a mile from that....

    Are we wasting our time even approaching bank of Ireland or is there any other banks that you know of that could help us out?

    Thanks:P


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    #2
    gogo
    Registered Users Posts: 1,452 ✭✭✭gogo


    Ouch! Most banks will not take on debt from other institutions any more, especially in the region of 62k. I presume the 11k is savings?
    I was going to suggest switching your mortgae to anotherlender in the hope of getting a better rate, but this depends of course what rate your on. Also its only three years old, so that mightnt work.

    How old are the cu loans? Would it be worth putting them over a longer term, credit unions will look at terms of 7 years for home owners. If you go to your credit union website you will see a loan calculator, so you can work this out yourself before approaching them.
    Unfortunatley while your house may be valued at 440k the chances of it selling at that are fairly slim at the mo, and the bank know that too.
    Contract work, your right, wont help, do you know if your contract will be re-newed? If so can you get written proof? Is your wife working?

    Listen tbh, the odds are stacked against you, but I would apply, whats one more bank in a list of many, it will stop you wondering. .;)


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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    a remortgage is probably a long shot. It wont be based on equity as much as it will on ability to repay. It will be noted on ICB off your applications elsewhere so BOI will see your refusals elsewhere.

    THe question i would be asking if i was the bank is what happens in 12 months? They want certainties in these times. Nothing is guaranteed if you are on contract and the bank will be thinking if things will nose dive in 12 months and the consolidating bank will ultimately lose out as they are all in and everyone else has got paid for the loans and they are the ones left with bad debt. That is what they are thinking.

    Also how did you get that much in debt? I presume the credit union loan is for the business but still its very high for a business that is a part time income by the sounds of it (i may be wrong so sorry if i am). These are the things the banks will be looking at.


  • Options
    #4
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Magicman1 wrote: »
    hey folks,

    Maybe you can give me some advice.

    My wife and i are currently trying to remortage. i know our timing isn't the best but we're going to have a go anyway - it would save us at least €500 per month if we could pull it off.

    We're in our house 3 years, have 27 years remaining on our mortgage of €223,000, we have a colossal credit union loan of €62,000 in a joint account and €11,000 in my accound, there's also €3650 remaining on a credit card. So that means our debts total €300k give or take. Our house was valued last month at €440k.

    All that probably sounds ok but the repayments on all our of our loans are crippling us....we're not behind on anything but, once we pay our bills, there isn't a whole lot left for shopping etc.

    We've been to a lot of the banks - AIB aren't interested in us, also got rejected by Ulster, PTSB, a mortgage broker tried a few more for us....the only ones we haven't tried yet is Bank Of Ireland.

    The reason the banks are saying no to us is down to 2 reasons - the first one is that I am on contract in my job, there's 12 months left in it....also I own a small business - they seem to run a mile from that....

    Are we wasting our time even approaching bank of Ireland or is there any other banks that you know of that could help us out?

    Thanks:P

    Not being funny but if the only bank left is BOI I can safely say without any doubt that BOI won't be interested in taking on your debt.

    Now I don't know where your house is or what you purchased it for but I have a serious doubt that it is worth 440k considering you bought at the height of the boom.


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    #5
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    I don't understand, did you pay a significant cash down payment on the house or has it significantly gone up in value since you bought it?

    Anyway, I can't help in any way, but was just curious:)


  • Options
    #6
    largepants
    Registered Users Posts: 796 ✭✭✭largepants


    O/P I don't know if this is much use to you but I've had an experience with a top up mortgage recently.

    I wanted 35k to do a few things with the house. Currently I have a mortgage of 115k over 12 more years paying around 970 pm with UB. I am in full time permanent employment and the oh is currently on a three year incentivised career break (circa 12,500) but will be back in emplyment in 2012 with a fairly decent wage. No other loans and to be honest don't have much in savings (maybe 1500)

    All they would give us was 20k but on the condition that both our current mortgage and the new top up were extended out to 20 years. Naturally I ran a mile.

    Thats my experience


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