A 3 mortgage mess

[johnnyk]

Hi All-yet another newbie in need of help.

I'll try to keep this brief as possible-I currently have 3 mortgages and the repayments are killing me. I'm in the process of changing the mortgages through a broker to what looks like IIB bank-the only one who seem's to be interested. I'm paying these on my own-for now!

I have joint ownership with the mother on her house, Value €340k. 2 mortgages of 80k and 80k-at about €156 now. Both with PTSB. 1st is at 4.35% @ €407/month, 2nd is at 4.35% @ €356/month. Paying capital and interest.

Recently I got my own apartment in Dublin, cost €280k, mortgage is €230k. I think the interest rate is similar to the others-not 100% sure. It's costing €807/month on an interest only till Feb 07 with AIB-where it may go up to €1200 ish, depending on the rate changes of course.

IIB are offering to give me a 3 year fixed rate of 4.79% on the 2 mortgages. I was hoping for a decrease in my repayments short term, but it's actually going to cost me an extra €1 than what I'm paying now. Interest only on both.

Is this a good idea- I can't see anyway for me to reduce my repayments-hoping that in 3 years things will have settled for me and my wages will have gone up.I'll hopefully be able to pay the capital on both then.

Any suggestions to reduce my repayments or miracles are very welcome-cheers in advance

 

[JohnBoy]

at the risk of sounding simple you could always sell one of the properties and use the proceeds to clear some of your remaining debt.

Interest rates are expected to rise further so you ought to bear this in mind given that you are already having trouble servicing these mortgages.

 

[dodo]

Did you try NIB I found them to be very good hungry for new business, Could you stay living with your Mum and rent your apartment until you are in a better position or If you want out of the house could you not rent a room out in your new apartment, I think you more need to have more of a cash flow rathar than trying to get a real low mortgage rate which are not really there at the moment, boat sort of missed with rates going up, I think a bit of lateral thinking is required,

 

[johnnyk]

Cheers for he replies-ye Johnboy I know that selling the apartment or moving back home would sort this out, but as it's mt first place, I'm going to struggle on for now!

I may as well take the IIB offer if I get it, as at least that will mean no more repayement increases for the forseeable future. As for trying NIB Dodo, I'm assuming the broker went to them as well but I'll check with him.

The other possibility is Bank of Scotland-they're reviewing the case at the moment-if they were interested it would be put over 40 years as apposed to 30. If it brought the repayments down in the short term, I'm in no huge hurry to clear the bill, chances are it'll be cleared before the completion of the mortgage-Here's hoping!

 

[oysterman]

As for trying NIB, I'm assuming the broker went to them as well

Never, ever assume any such thing.

Which providers deal with brokers and which don't always generates a flood of posts here but, from recollection re-mortgaging with NIB about 18 months ago, I recall NIB as being one of those who don't sell through brokers.

But that's not really my point in any event. Most brokers are in business to maximise their commission so no client should assume that the broker trawls the full market to secure the cheapest deal for the client. I would guess that there are volume related deals for brokers from individual providers which would encourage the broker to deal primarily with one provider. (Of course fixed fee brokers who pass on commission to the client - like REA - can presumably be excluded from this analysis.)

Brokers are of great help in cases where the client may have difficulty getting the size of mortgage they require, or any mortgage at all if they have unreliable income or a dodgy credit record, but the average punter, in these days of easily (too easily) available credit should be able to get the cheapest deal available with no broker intervention.

 

[johnnyk]

Cheers for the replies-I'm still waiting for bank of scotland to get back to me, probably on monday, to see will they take the case. I think I may have been complicating the situation so I'm going to leave the mother's property out of it and see what deal can be done on my property, only. I will also be ringing NIB to see what they are offering at the moment. We shall wait and see I suppose!