capitalising arrears

M

miss buzzer

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We hav 7,500 in arrears...the bank suggests we capitalise the arrears by extending our mortgage (28 yrs left) by 4yrs which would be then 32 yrs,they also said this would reduce our monthly paymens....im not overly impressed by this to be honest....would we be able ro propose our own solution like capitalising our arrears over the term of our mortgage....?
 
Thanks for that...i think capitalising over the term of the mortgage sound better for us..hopefully the bank will too....this wont change our tracker in any way at all??....would you know??
 
You don't capitalize arrears over a particular term. You capitalize them full stop.

What you are asking is whether you should agree to pay off your mortgage over 28 years or 32 years. The answer is absolutely clear. Go with their suggestion of 32 years.

Then you have complete flexibility. You can make higher than scheduled repayments if you can afford to do so. If your financial circumstances change, you revert to the 32 year period because the payments will be lower.

Anyone with a cheap tracker should be going for as long a term as possible.

Your tracker will not be affected - assuming it's your home. Even if it were an investment property, it would be unlikely to be affected.
 
Sorry to piggyback on the forum, we have a mortgage with IRBC and have applied for a new moratorium on 3 separate occasions over the past 12 months and for one reason or another, the paper work "getting lost" requesting additional information and then getting back to say the application deadline expired etc.

I suppose we could be considered one of the "lucky" ones, our mortgage has about 6 years remaining with a balance of €60,000 remaining. Our monthly repayments are currently €800.15 and we are approximately €10,500 in arrears which is included in the €60,000 mortgage balance.

Like most mortgage holders in IBRC our mortgage is due to transfer to Lone Star in June was just wondering if I should request that the arrears be recapitalised into the mortgage or would we be able to switch our mortgage to another Lender and extend the term.
 
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