Pre Arrears, Advice Needed.

S

St. Bernard

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Looking for some advice / guidance. My situation is as follows,

In 2006 I found out my long term girlfriend was pregnant. We had been talking about buying a house prior to finding this out, as we wanted to get on the property ladder before prices got out of our reach. We had started saving but did not have enough for a deposit. So we applied for a 100% mortgage with Ptsb and got it. We bought a 2 bed terraced house in Balbriggan, Co. Dublin for €310,000 over 30 years @1.2% plus ECB tracker. After my girlfriend had our child she never returned to work because of medical complications. I have paid our mortgage in full from day one. We got married in 2009 and had a second child in 2010.

Now our marriage has failed with no chance of reconciliation. I have moved out and I am renting near the house for the kids sake. I paid the first few months mortgage and my rent before we took a 3 month mortgage break. That break is up next month.

My question is what do I do now. If I could afford to I would pay both mortgage and rent but I cant. Not on top of maintenance, bills, food etc. Neither of us lives a luxurious lifestyle by any means. I’m not looking for someone else to pay my loans. I am well aware I accepted the loan and the repayment structure but circumstances have changed and I hope someone can offer some advice.
 
Best approach is to immediately contact the PTSB and advise them of your inability to pay. Your request will be dealt with under the MARP guidelines (number of previous posts on this issue). You will be asked to complete a statement of your financial means and a decision will be made. You need to decide on whether you request an interest only paymant or a interest and part capital amount.
 
Sorry for your unfortunate circumstances. You definitely need to engage with the PTSB as soon as possible. If you cannot afford the mortgage and the PTSB decide you cannot, then after a certain amount of time they will seek to get the house back and sell it. You would then be left with the remaining amount (negative equity and costs) to repay out of your salary. Your girlfriend is equally liable but as she has no income it is you that will have to pay it off.

Do you want to do the money makeover thread? You might get more ideas from there.
 
Thanks guys.

Have an appointment with them for Friday week. They sent out the statement to be completed. All very straight forward.

44brendan, dont think either interest only or a interest and part capital amount will be an option as all that will be doing is kicking the can further down the road if you know what i mean.

Dont want the the ex and kids to have to leave the house but i suppose i will have to wait and see what the bank say.

Cheers
SB
 
Have you thought of moving back into the family home? Whilst it would be cramped and not ideal, it would mean that you're not paying a mortgage and rent. It would also reduce other costs - electric, heating bills etc and you would be better placed to revise maintenance.

The medical complications that your estranged wife had after her first pregnancy would seem to have improved as you had another baby together - maybe if you moved back in she could get a part-time job - which would help even more with the financial side of things.
 
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Are you going through/for a judicial separation whether through mediation or solicitors? If so then that process may help to clarify your options in the context of the rent/mortgage/maintenance etc.
 
ACA - That is not the case, she was due to have a c-section on # 2 but ended up having a natural delivery which has made things a lot worse.

Moving home is not an option with 2 kids as neither parents have the room.


Clubman - We are nearing the last session of mediation with the FSA who have been very helpful. Hopefully soon after we can get it completed by our solicitors. (don't know how long this will take though).


SB
 
Right, So the proposal from the bank is another 3 months moratorium and then onto maybe 6 months interest only.

Im getting the vibe that the bank hasn’t a clue what to do with people in my situation and are waiting to see what other banks / government decide to do or maybe not do.

Or else this is the SOP for people in my situation before they even consider meeting with you at a higher level to see what can be done.
 
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