Advice pls: can I be told what to do about payments on mortgage arrears?

A

amtc

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I have a mortgage on my primary residence, which is a couple of thousand in arrears. It's not much - I had lost my job in January and had a traffic accident which meant I couldn't work. I missed a few payments as I was in hospital (always paid i/o) which at July were around 10k on a 190k mortgage (original mortgage 263k in 2004, always paid to date since 2004).

I did the MARP process, but just as I was being evaluated, I received a job offer of 6 figures. I started this in July, and since then am paying my usual amount (1152) plus 1500 towards arrears. Assessor has deemed my mortgage affordable (which it is) and I've been excluded from MARP (rightly).

My arrears as of today are 4k. Yet I'm still getting letters about legal action - I rang today, and BOI said I had to fill out an Income and Expenditure Sheet and they would tell me what I could pay.

My issue is that my salary at the moment is very good, but my contract is up next week! I'm pretty sure it'll be renewed, but is on a 3 month basis rolling. I would like to pay off my credit card (about 1k). I'm worried that if I do engage with BOI that they will tell me that I can afford more - which right now I can - but I have absolutely no certainty as to where this contract will go, and I would like to have a buffer.

Any advice, please?
 
Hi

If you are in arrears on your mortgage, you are in breach of your contract. If you can clear these arrears, then you should do so. You certainly should not be overpaying your credit card when you could be clearing your arrears. Unless, of course, your lender agrees to reschedule your mortgage.

Why do you need a buffer? You need to clear your arrears first and then build a buffer.

I am not sure why you are excluded from the MARP? If you are in arrears, then you should be in MARP.

Bank of Ireland will probably reschedule your mortgage. But they can't do it if you don't submit details to them. If you prefer other creditors and build up a buffer, they would be right to deem you non-cooperating.

The sooner you clear your arrears, the sooner you will have a clean ICB record.

So to answer the question:
"can I be told what to do?"

Yes, a lender can require a borrower to adhere to the terms of their mortgage.

Brendan
 
Brendan Burgess said:
So to answer the question:
"can I be told what to do?"

Yes, a lender can require a borrower to adhere to the terms of their mortgage.

Brendan
Click to expand...

I don't understand why you say this Brendan. The understanding I have gained from reading your court reports is that the lender cannot require a borrower to do anything much.
 
Good point.

The bank can require amtc to adhere to his contract. They are under no obligation to accept a proposal from AMTC to pay according to a schedule which AMTC chooses.

But if AMTC decides to pay his credit card or to go on holidays instead of paying his mortgage, there isn't much that the bank can do about it.

Brendan
 
I know I owe the arrears. I object to being told what I can afford on the basis of 1 short term contract. That is my point. I also object to BOI not suggesting a move to a fixed term rate from a high std variable. OK I should have asked but was in hospital and not thinking straight.

By the way I am female...not that it makes any difference. Although I am wondering as I just did one of those Facebook names tests that says what 2017 will bring. Apparently I will become a father.
 
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