Review of mortgage int supplement.

[christmas]

Hi I have had this supplement for 11 mths now and have been informed that there will be a review next month. In the time I recieved it I was receiving 680 pm but my mortgage is actually 1360 pm. At the start we tried really hard to pay the full amount od 1360 pm but it just got to be impossible as we were both unemployed and just didnt have enough to get by,infact because we tried so hard to keep up witht the full payment we fell totally behind on other bills and ended up missing 2 mortgage payments entirely. This was about 6 mths into the supplement. Since then we pay the full amount of the supplemnt (680) to out mortgage company and they are accepting this even though it is not even enough to actually cover the full interest on the loan which works out at about 900 euro pm.
Over the last 11 mths we have calculated that altough we missed the 2 mths mortgage payment we have infact paid more than we received in payment. my question is does anybody know if we will be cut off from this payment because of the 2 missed mths? Or is the total amount paid into the mortgage account taken into consideration.

Thanks.

 

[Papercut]

As far as I know, the review that was mentioned in the Budget refers to an overall review of the workings of the scheme e.g. qualifying conditions, duration of payment & guidelines for assessment which has been ongoing for some time now, the results of which are to be announced sometime in 2010.

With regard to your particular situation, mortgage interest supplement payments are subject to periodic review by the CWO anyway. This is to ensure that you are actually paying it to your mortgage provider & also to adjust the payment in line with any interest changes that may have affected your loan. You should make sure that you at the very least pay what you have received in your mortgage interest supplement, & perhaps try to make up the difference to the actual interest amount of your loan if at all possible. It is up to you to try to come to some sort of agreement with your lender regarding the repayment of the capital amount.

You should consider approaching your lender to ask them to put you onto an interest only repayment option for a set amount of time pending review, until such a time that your financial situation improves.

MABS www.mabs.ie could help you do this, & could also approach other creditors on your behalf, with a view to coming to some sort of realistic payment plans to suit your budget. There is a waiting list, but I’d suggest that you go on it, & in the meantime have a look at their website.