David_Dublin
Registered User
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Thankfully (touching wood), we're not in this position, but I was wondering what people would do if they are not in a position to repay their mortgage, i.e. no longer employed. But they have savings of, for example, 30k. If I was in this position, I would definitely think about letting them know that I have no ability to repay, and let my mortgage go into arrears. I'd then use the savings to subsidise my social welfare income so I was not on the breadline, and/or leave savings for a rainy day when family night really need it.
If the bank came after me all guns blazing, looking to force me to sell or whatever, my position might change, and I might go interest only etc, but I think I would definitely use the moratorium period that sturggling people have, rather than use up the savings.
I know that I'd eventually have to pay the accumulated interest etc that would be owed during any period of non payment, but it would be far worse to feel like you are just giving all your hard earned savings to the bank, while others in a similar position that had bought more expensive houses, or had lived more extravagant lifestyles (or for whatever reason have no savings) who are not paying their mortgage are not any worse off for it in the here and now.
What do people think? The assumption is that the savings are with another bank and so they would not know about them. I'm sure there must be a number of people that are in arrears who have some rainy day savings that they aren't using for keeping up with repayments.
If the bank came after me all guns blazing, looking to force me to sell or whatever, my position might change, and I might go interest only etc, but I think I would definitely use the moratorium period that sturggling people have, rather than use up the savings.
I know that I'd eventually have to pay the accumulated interest etc that would be owed during any period of non payment, but it would be far worse to feel like you are just giving all your hard earned savings to the bank, while others in a similar position that had bought more expensive houses, or had lived more extravagant lifestyles (or for whatever reason have no savings) who are not paying their mortgage are not any worse off for it in the here and now.
What do people think? The assumption is that the savings are with another bank and so they would not know about them. I'm sure there must be a number of people that are in arrears who have some rainy day savings that they aren't using for keeping up with repayments.