Hello all,
I am sure you'd love to hear my depressing story of poor finances but I will leave that be and get to the point.
I am dealing with a PIA where essentially what will happen is that I will lose 3 rentals and probably keep my own home. The three rentals are worth maybe €170k in total (yeah!) and the loans are a juicy €380k (bigger yeah!)
The mortgage on my home is €289k, it is a tracker with BOS and we are just paying interest (€700 per month). Originally it was a 25 year loan for €310k so only €20k cleared from it. Ouch.
Anyway reading all the PIA examples etc I am thinking the best I can hope for is to go into this misery PIA for 6 years, live on bread and water and walk to work etc (exagerrating a little) and in the meantime the rentals will be sold, transferred to "unsecured debt" and more or less written off. That will also apply to my credit card and other loans but luckily for me the total of them is only €2k or something.
Once the 6 years is over I will then have the luxury of starting a juicy 35 year mortgage for the house which is now worth €150k with the loan of €289k. That loan over 35 years total a repayment of €600k for a house worth €150k. Great.
As I am on a tracker I can't avail of a lower interest rate.
Because I am 34 they will hamper me with this huge term unlike those in their 50s who will get their lovely write-offs leaving the younger generation carrying the can. That's fair!
Does anyone think I am way off on that prediction? Problem is that is seems rather pointless to me because banking on working continually for the next 35 years to pay off the mortgage is like putting €100 on Stoke to win the league - far fetched.
Is there any other option? I'd love to keep the house but I feel I am being penalised for being within an age bracket where they can increase the term of the loan and that is hard to bear given I have 3 kids and come 10 years time all 3 will be in school and require education funding etc.
Sorry....
I am sure you'd love to hear my depressing story of poor finances but I will leave that be and get to the point.
I am dealing with a PIA where essentially what will happen is that I will lose 3 rentals and probably keep my own home. The three rentals are worth maybe €170k in total (yeah!) and the loans are a juicy €380k (bigger yeah!)
The mortgage on my home is €289k, it is a tracker with BOS and we are just paying interest (€700 per month). Originally it was a 25 year loan for €310k so only €20k cleared from it. Ouch.
Anyway reading all the PIA examples etc I am thinking the best I can hope for is to go into this misery PIA for 6 years, live on bread and water and walk to work etc (exagerrating a little) and in the meantime the rentals will be sold, transferred to "unsecured debt" and more or less written off. That will also apply to my credit card and other loans but luckily for me the total of them is only €2k or something.
Once the 6 years is over I will then have the luxury of starting a juicy 35 year mortgage for the house which is now worth €150k with the loan of €289k. That loan over 35 years total a repayment of €600k for a house worth €150k. Great.
As I am on a tracker I can't avail of a lower interest rate.
Because I am 34 they will hamper me with this huge term unlike those in their 50s who will get their lovely write-offs leaving the younger generation carrying the can. That's fair!
Does anyone think I am way off on that prediction? Problem is that is seems rather pointless to me because banking on working continually for the next 35 years to pay off the mortgage is like putting €100 on Stoke to win the league - far fetched.
Is there any other option? I'd love to keep the house but I feel I am being penalised for being within an age bracket where they can increase the term of the loan and that is hard to bear given I have 3 kids and come 10 years time all 3 will be in school and require education funding etc.
Sorry....