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Interest only mortgage

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  • 13-03-2012 10:00pm
    #1
    Registered Users Posts: 1,535 ✭✭✭


    We talked to the PTSD last year about our options to reduce our payments as my wife was made redundant, they offered us 3 months moratorium and 6 months interest only. This was a very short term solution and then our repayments would have increased when we went back to full payments again which we thought would have set us in a worse situation. My job has since been cut to 10 hours per week and we are struggling to meet the payments now, the children's allowance goes straight from the post office to the bank electronically, we never see a penny of it. Can we tell the bank we want to go on interest only indefinitely, a short term solution is no use to us, we have 4 kids who are the ones who are suffering now. I have heard about people doing this but I a, not sure how to approach it.


Comments

  • Registered Users Posts: 6,794 ✭✭✭cookie1977


    Have a look at this site. It dicusses the code of conduct for mortgage arrears and should help.
    http://www.keepingyourhome.ie

    You can't go interest only permanently but you could avoid capital repayments and only pay 66% of interest on the mortgage for up to 5 years. Talk to you bank about the situation and if need be maybe talk with mabs: http://www.mabs.ie or flac: http://www.flac.ie

    Good luck.


  • Closed Accounts Posts: 1,599 ✭✭✭Fiskar


    PM sent, there is a PTSB campaign afoot to get them to reduce rates, details are withiun the PM.


  • Registered Users Posts: 1,535 ✭✭✭BlackEdelweiss


    cookie1977 wrote: »
    You can't go interest only permanently but you could avoid capital repayments and only pay 66% of interest on the mortgage for up to 5 years..

    Could you explain this please, do you not pay the main payment and only pay 66% of the interest. Sorry if that is an obvious question, I dont know much about the whole thing.
    We are not in arrears now as we have always made our payments and let other areas suffer, will this go against us, are we better off being in arrears to show we are struggling?


  • Registered Users Posts: 6,794 ✭✭✭cookie1977


    You're not better off being in arrears. Speak to your bank about the situation. The code of conduct allows for a lot of options if you're dealing with your debt and one of these is that if you are struggling you might be able to offset capital repayments for max 5 years and only have to pay 66% of you mortgages interest payments over the same period, depending on your situation.

    If your income is reduced, you may also qualify for a Mortgage Interest Supplement.
    http://www.keepingyourhome.ie/mortgage_interest_supplement.html

    Have a read through of the website I linked to and if you're still confused speak to your bank or mabs (0761 07 2000) or citizens information (0761 07 4000)


  • Registered Users Posts: 4,502 ✭✭✭chris85


    Could you explain this please, do you not pay the main payment and only pay 66% of the interest. Sorry if that is an obvious question, I dont know much about the whole thing.
    We are not in arrears now as we have always made our payments and let other areas suffer, will this go against us, are we better off being in arrears to show we are struggling?

    Do not go into arrears to show you are struggling as sometimes this closes some options off to you. Contact the bank and let them know your concerns. They are obligated now to assist you and try work out the best way forward for you.


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  • Registered Users Posts: 1,535 ✭✭✭BlackEdelweiss


    They are intrest free for the duration of the loan, I just want a year or two to get on top of things.


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