I wanted to check if anyone had the same problem as us. We negotiated with the bank due to our repayments being unaffordable and got a year interest only. Our mortgage is 258,000 over 21 years at 5% fixed. Our payments had been over 1,600 per month. Now reduced to 1,100 per month approx. This is great as we have a rent-a-room which pays 540 per month towards the mortgage which makes it easier to manage.
My husband is a taxi driver and can barely make anything. What he does bring in per week (200) is swallowed up sometimes with servicing the car/insurance costs, etc. He is on the verge of giving it up, but will not be able to avail of any soc. welfare benefits as far as we know.
On talking to the bank about getting a second year of 'interest only', we filled out the 'financial breakdown' and sent it back in to them. I didn't let them know about our 500 per month rent-a-room. Over the phone, I asked them if we could extend the term of the mortgage by 10 years as I wanted to pay something towards the house and settle without having to worry about the arrangement expiring, etc. This would make the payments approx 1,300 - difficult, but doable.
However, the bank felt we might not be able to afford to payments on this. They also said that they would only be able to extend by 4 years due to my husband's age (46). I told them that I was a steady earner and I had pretty stable employment and would they not give the ten years based on my age as to be honest, it's me that has paid all of the mortgage throughout the years.
They said they would talk to the underwriters about this. I was waiting for another phone call, when I got an 'interest only' agreement in the post to sign off on Friday for another 12 months.
Even though the interest only will really help us, I would rather pay the extra 200 month and become a 'functioning' mortgage holder and get on with our lives.
Has anyone any experience on this? Should I ring back and ask for the ten year extension of the loan? At the end of the day, my husband can be insured for the duration of the loan and as times are so difficult, what are the odds of them agreeing to this?
Thanks for any imput on this.
My husband is a taxi driver and can barely make anything. What he does bring in per week (200) is swallowed up sometimes with servicing the car/insurance costs, etc. He is on the verge of giving it up, but will not be able to avail of any soc. welfare benefits as far as we know.
On talking to the bank about getting a second year of 'interest only', we filled out the 'financial breakdown' and sent it back in to them. I didn't let them know about our 500 per month rent-a-room. Over the phone, I asked them if we could extend the term of the mortgage by 10 years as I wanted to pay something towards the house and settle without having to worry about the arrangement expiring, etc. This would make the payments approx 1,300 - difficult, but doable.
However, the bank felt we might not be able to afford to payments on this. They also said that they would only be able to extend by 4 years due to my husband's age (46). I told them that I was a steady earner and I had pretty stable employment and would they not give the ten years based on my age as to be honest, it's me that has paid all of the mortgage throughout the years.
They said they would talk to the underwriters about this. I was waiting for another phone call, when I got an 'interest only' agreement in the post to sign off on Friday for another 12 months.
Even though the interest only will really help us, I would rather pay the extra 200 month and become a 'functioning' mortgage holder and get on with our lives.
Has anyone any experience on this? Should I ring back and ask for the ten year extension of the loan? At the end of the day, my husband can be insured for the duration of the loan and as times are so difficult, what are the odds of them agreeing to this?
Thanks for any imput on this.
