Where do we stand with the Bank?

Amber34

I am new to this and I am wondering if anybody could help me out with any information. My husband and I have a mortgage of approximately €114,000. When we took out the mortgage nine years ago, both of us were in full time work. Since then, my husband has lost his job and I have been made part time, our income now is less than half of what we were earning at the time we got the mortgage.

Our mortgage repayment is €765 per month, which we cannot afford. Up to now the bank have given us a reduced repayment but are no longer allowing it to us. We have always kept in contact with the bank as to the repayments, have given them our income and expenditure status', and we cannot afford any more than €530 per month, which is stretching us to the limit.

They have come back now saying that they will not agree to this and I am at my wits end as to know what to do. We are not people ignoring our debts, we have just fallen on hard times like many others, we don't spend money socialising or on any unnecessary luxuries, we are just doing our best to pay our bills on what income we have. Any information on where we stand would be greatly appreciated.

goldenhoarde

Thats just mad.

I'd get out a spreadsheet and do up an income and expentiture showing the outgoings etc as they may be thinking some expenditures you have are not necessary!!!

Get on to MABS and see if they can help as you are doing all you can so the bank should be more accomodating.

SCOOP 64

Outrages! Cant believe,you have offered €530 a month on a mortgage of €756!
thought most banks would accept this, and be please your trying to pay off debt,as alot of people are missing some monthly payments altogether.

homer911

At an interest rate of 4%, your monthly interest charge is €380, so it looks like you are paying more than interest only but less than full P&I.

Banks are applying a sustainability test to all their loans at the moment and from a medium term perspective they may be concerned about your ability to repay

Personally I'd say a bit more leniency from the bank is called for - have you completed a Statement of Financial Standing recently with them? Are you in their MARP process? Your openness with the bank regarding your financial status should hold you in good sted with them...

Cushie Butterfield

Amber34 wrote: »

I am new to this and I am wondering if anybody could help me out with any information. My husband and I have a mortgage of approximately €114,000. When we took out the mortgage nine years ago, both of us were in full time work. Since then, my husband has lost his job and I have been made part time, our income now is less than half of what we were earning at the time we got the mortgage.

Our mortgage repayment is €765 per month, which we cannot afford. Up to now the bank have given us a reduced repayment but are no longer allowing it to us. We have always kept in contact with the bank as to the repayments, have given them our income and expenditure status', and we cannot afford any more than €530 per month, which is stretching us to the limit.

They have come back now saying that they will not agree to this and I am at my wits end as to know what to do. We are not people ignoring our debts, we have just fallen on hard times like many others, we don't spend money socialising or on any unnecessary luxuries, we are just doing our best to pay our bills on what income we have. Any information on where we stand would be greatly appreciated.

Give the MABS helpline a call at 0761 072000 or the Citizens Advice Mortgage Arrears Helpline at 0761 074050 & see what their advice is.

Amber34

Yes we have received a letter saying we are covered by the MARP process but I do not really understand what this is. There is a certain guy in the bank who we have been dealing with going along and he is being helpful but he said that the Head Office have come back saying they will not agree to the reduced repayment but he will ring me today to discuss it. We both have Credit Union loans and they do say that we should not be paying as much to the Credit Union (€60 per week) but when we applied for the mortgage we told them we had Credit Union loans and were told by the Manager himself not to disclose the fact that we had these loans and much as I do not want to lose the roof over our heads, I feel it is important to honour our debts with them also.

cookie1977

Are you under the MARP process and have you completed the SFS for the bank?

They should be dealing with you under this process.

Amber34

Thank you all for your information. I will wait to get the call from them today and then I will contact MABS.

Rebel1977

Even if you offer the bank some sort of offered payment they have to accept it draw up your income and expenditure and even if you have to increase some of the expenditire just to prove you can afford the €500 plus monthly repayment.

phormium

It's the credit union loan repayments, if you have not reduced these at all then the bank will expect you to get them reduced first before they agree to a further decrease in your mortgage repayment.

First priority is roof over your head, MABS will tell you the same thing, your mortgage is secured debt, credit union is not. You must approach credit union for reduction, when you have that, then go back to bank with revised proposal.

Amber34

We have had the Credit Union loan repayment reduced, we were originally paying over €100 per week but now have it down to €60. I have rang MABS now so am just waiting on an appointment so hopefully they will be of help. Thank you all for your answers.

mozattack

I wish I had only that problem, seems very little debt nowadays. I couldn't be concerned.

namloc1980

As mentioned above it's the credit union loan that the Bank are balking at. Your paying the CU €60 a week (€260 per month) on an unsecured debt yet €530 on your mortgage. I don't know how much you owe the CU but your mortgage is probably many times larger. MABS will tell you this. Mortgage should be priority. Unsecured debts have to wait.