Hi all I only joined today so hoping someone here might be able to shed some light.
here is the background, bear with me its long winded enough.
we have a mortgage with the pt*b , actually we have one mortgage and one mortgage top up
balance owing on mortgage 1 is 155,267.82 and the term left is 20 years
top up balance is 28,930.77 and the term is 28.75 years
we are on a fixed rate on both till 2018 of 5.25%
we were originally on a tracker but in 2007 we had twins and with 6 interest hikes that year we were starting to fret and when a letter came offering a fixed rate we jumped at it....mores the pity!
Now we have been paying interest only for the best part of 2 years, my dh is in construction, he works any where from 0 days to 4 days per week, usually about 3 days per week, he gets little notice of upcoming work, often as little as a few hours before the job is to begin or be postponed due to weather.
i work from home childminding 2 alongside minding my own 2 children . its not great money but it means we dont have childcare costs to pay out and it a very stable income too. we dont have any family to help out.
we have arrears on both accounts, the larger mortgage we have 2 months arrears due to a clerical error, we were told in 2010 that we were granted a 3 month moratorium but alas.....2 months into the " moratorium " we received a phone call enquiring into why we had missed 2 months payments, we could not rectify the issue at this point we had used the money on major home repairs and that was how we ended up in arrears.
the top up mortgage was also a clerical error, i lodged the cash due into the smaller loan at the cashiers desk, the stub had all the correct acc numbers however the teller lodged it into the larger mortgage account, as this account was in arrears we could not retrieve the money and loan 2 went into arrears.
the sum total we owe in arrears is about 3400 euro
in dec we applied once more for a 6 mt interest only agreement, but we were denied as the underwriter had done some maths and had decided that the best way forward for us in this mortgage is to restructure the loan completely.
we should be repaying 1,017.15 per month on mortgage 1
and 152.19 per month on the top up
total : 1169.34
at present we pay 659.62 on the main mortgage and
116.75 on the top up
so the total is 776.37
now i have to stress this is alot for us, especially as my husbands income is so changeable. he is presently out of work again.
now we really want a workable solution and this is what we were offered over the phone.
the underwriter would like us to increase the mortgage term by 14 years, my dh is aged 35 and i am 32. we would be looking at paying the mortgage till ages 69 and 66. I am quite upset at this but i do realise this interest only agreement cannot continue either.
the restructure would mean paying an extra 200 euro more per month than the interest only at present, so about 980 euro per month, it would be 198 euro less than the full mortgage.
i had hoped that by the time 2018 comes along the interest rates might be more favourable and that by then my husbands work would be more stable we are currently on a fixed rate of 5.25% but maybe delaying another 5 years and not restructuring is just putting my head in the sand.
we have 2 other loans also due to finish in next 4 to 5 years, i pay 150 per month to the boi and 45 a month to a finance company, i had hoped that with a better interest rate and these two loans cleared we would manage the shortfall and finally be back on track.
i am due to see the banks manager next week to talk face to face , she has said all she can do is take an up to date account of the income though. she did say they will pay for me to see an independent financial advisor if we are to restructure. its very hard to calculate a full and accurate income for this household as my husbands hours vary so much and when he is fully unemployed he gets the dole, but again that all depends on his hours. often he is due to work 4 days and so he would tell the social welfare this and then he doesnt receive any payment which is fine , however it has happened that the job falls thru, the weather is unfavourable etc and then he had no pay and no dole. we are trying to balance a movable income and its exhausting.
finally my dh has had some serious health problems , he is very well the last 2 years but he got a disease weeks after we got married which compromised his immunity very badly and has on occasion ended up in intensive care being monitored. i worry he may not be able to work till his late 60's, its a very real possibility.
our house is not in negative equity we bought it for 188,000 in 2001, we paid 15,000 cash and mortgaged for 173,000 and the top up was for 30,000 in 2005, the overall we owe is 184,197 and i think the latest figures for sales in this area are asking price 200,000. we would def not want to move, it would be an absolute final resort.
now if all that wasnt enough to get your head around we have a surprise baby due in about 7 months also. so much for infertility!
should we take the restructure or have we other options?
here is the background, bear with me its long winded enough.
we have a mortgage with the pt*b , actually we have one mortgage and one mortgage top up
balance owing on mortgage 1 is 155,267.82 and the term left is 20 years
top up balance is 28,930.77 and the term is 28.75 years
we are on a fixed rate on both till 2018 of 5.25%
we were originally on a tracker but in 2007 we had twins and with 6 interest hikes that year we were starting to fret and when a letter came offering a fixed rate we jumped at it....mores the pity!
Now we have been paying interest only for the best part of 2 years, my dh is in construction, he works any where from 0 days to 4 days per week, usually about 3 days per week, he gets little notice of upcoming work, often as little as a few hours before the job is to begin or be postponed due to weather.
i work from home childminding 2 alongside minding my own 2 children . its not great money but it means we dont have childcare costs to pay out and it a very stable income too. we dont have any family to help out.
we have arrears on both accounts, the larger mortgage we have 2 months arrears due to a clerical error, we were told in 2010 that we were granted a 3 month moratorium but alas.....2 months into the " moratorium " we received a phone call enquiring into why we had missed 2 months payments, we could not rectify the issue at this point we had used the money on major home repairs and that was how we ended up in arrears.
the top up mortgage was also a clerical error, i lodged the cash due into the smaller loan at the cashiers desk, the stub had all the correct acc numbers however the teller lodged it into the larger mortgage account, as this account was in arrears we could not retrieve the money and loan 2 went into arrears.
the sum total we owe in arrears is about 3400 euro
in dec we applied once more for a 6 mt interest only agreement, but we were denied as the underwriter had done some maths and had decided that the best way forward for us in this mortgage is to restructure the loan completely.
we should be repaying 1,017.15 per month on mortgage 1
and 152.19 per month on the top up
total : 1169.34
at present we pay 659.62 on the main mortgage and
116.75 on the top up
so the total is 776.37
now i have to stress this is alot for us, especially as my husbands income is so changeable. he is presently out of work again.
now we really want a workable solution and this is what we were offered over the phone.
the underwriter would like us to increase the mortgage term by 14 years, my dh is aged 35 and i am 32. we would be looking at paying the mortgage till ages 69 and 66. I am quite upset at this but i do realise this interest only agreement cannot continue either.
the restructure would mean paying an extra 200 euro more per month than the interest only at present, so about 980 euro per month, it would be 198 euro less than the full mortgage.
i had hoped that by the time 2018 comes along the interest rates might be more favourable and that by then my husbands work would be more stable we are currently on a fixed rate of 5.25% but maybe delaying another 5 years and not restructuring is just putting my head in the sand.
we have 2 other loans also due to finish in next 4 to 5 years, i pay 150 per month to the boi and 45 a month to a finance company, i had hoped that with a better interest rate and these two loans cleared we would manage the shortfall and finally be back on track.
i am due to see the banks manager next week to talk face to face , she has said all she can do is take an up to date account of the income though. she did say they will pay for me to see an independent financial advisor if we are to restructure. its very hard to calculate a full and accurate income for this household as my husbands hours vary so much and when he is fully unemployed he gets the dole, but again that all depends on his hours. often he is due to work 4 days and so he would tell the social welfare this and then he doesnt receive any payment which is fine , however it has happened that the job falls thru, the weather is unfavourable etc and then he had no pay and no dole. we are trying to balance a movable income and its exhausting.
finally my dh has had some serious health problems , he is very well the last 2 years but he got a disease weeks after we got married which compromised his immunity very badly and has on occasion ended up in intensive care being monitored. i worry he may not be able to work till his late 60's, its a very real possibility.
our house is not in negative equity we bought it for 188,000 in 2001, we paid 15,000 cash and mortgaged for 173,000 and the top up was for 30,000 in 2005, the overall we owe is 184,197 and i think the latest figures for sales in this area are asking price 200,000. we would def not want to move, it would be an absolute final resort.
now if all that wasnt enough to get your head around we have a surprise baby due in about 7 months also. so much for infertility!
should we take the restructure or have we other options?
