PIA Questions

[Mortimer]

Hi,

Met with PIP recently. Our outgoings (based on ISI minimum guidelines) are more than our income so we cannot propose a monthly payment for 6 years to our lender to deal with some of residual balance on forced sale of BTL. Furthermore, we wouldn't be able to get our hands on more than a few grand from family to offer as a lump-sum one-off payment. The residual balance after sale will be around 130-140k. Here are my questions:

-in the above scenario, what can we do/what can lender do? (our PPR is 90k in negative equity so we were told they probably won't put a charge on that)

If we do enter a PIA:

-if my wife gets a pay increase at work, is it true the lender will take 50% of any net increase? i read somewhere that this is based on an increase of over 250 euro per month. Is this correct?

-I am currently unemployed with no social welfare or any other income. If i get a job in 6 year PIA period, how much can lender take after childcare costs/travel to work costs are taken into account?

In other words is there any motivation to my wife getting a promotion or me even looking for a job for the next six years?!

-if you enter a PIA, are you on a public register? Or can you only be found, as I've read, if someone is specifically looking for you?

-if you enter a PIA, are you basically unable to holiday for six years? We've a close relative's wedding overseas next year which our family of five would have to attend somehow....could this be vetoed?

Thanks in advance.

 

[Matthew Moore]

Hi,

Met with PIP recently. Our outgoings (based on ISI minimum guidelines) are more than our income so we cannot propose a monthly payment for 6 years to our lender to deal with some of residual balance on forced sale of BTL. Furthermore, we wouldn't be able to get our hands on more than a few grand from family to offer as a lump-sum one-off payment. The residual balance after sale will be around 130-140k. Here are my questions:

-in the above scenario, what can we do/what can lender do? (our PPR is 90k in negative equity so we were told they probably won't put a charge on that)

90K NE on a property worth how much? House prices are rising fast in many parts of the country and that NE could be wiped out in a few years.
As far getting a judgement mortgage of course they may seek one. In my own case my house is valued less than100k and the mortgage is more than 300k. Another department of my mortgage lender bank have secured a judgement mortgage on the house very recently.

In other words is there any motivation to my wife getting a promotion or me even looking for a job for the next six years?!

Yes, career progression for your wife and job satisfaction. Why would you not look for a job? Contributing money to the house aside, there is the whole other side of interaction that you are possibly missing out on plus the chance to be 6 years into a career and free of debt if you PIA lasted 6 years.

-if you enter a PIA, are you basically unable to holiday for six years? We've a close relative's wedding overseas next year which our family of five would have to attend somehow....could this be vetoed?

There is allowances in the reasonable living expenses for family activities and no, they can not veto the holiday. You would of course have to still meet your commitments in the PIA.