Case study unstainable mortgage advice pls

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eva117

Registered User
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Income details
Net :Husband Jobseeker 110euro weekly
Income history: unemployed since 08' since small business failed, currently studying, finish in 6mths qualification should enchance job prospects.
Net income spouse: job seeker 322euro (includes 4 children)
Income history: unemployed since 08 small business failed
Amount of child benefit received 260euro( for our two children, other two live with us part-time, joint custody husbands children)
Amount of Mortgage Interest Supplement received: 25euro weekly

Personal circumstances so we can calculate your reasonable living expenses
One adult family or two adult family:2
Do you need a car for work or do you use public transport? yes
Number of children 0- 2 years old:1
Number of 3 years old children:
Number of 4 - 11 years old:2
Number of 12 - 18 years old:1
Monthly childcare costs:
Montly spend on special circumstances: 150euro, 4yrs old has special needs.



Home loan
Lender: Ulster bank
Amount outstanding: 180,000
Value of home: 100,00
Interest rate: svr 4%
Monthly repayment : currently paying 150euro pm but this reverts back next month to new repayments 800euro approx.
Amount in arrears : 2,500

Summary of discussions and agreements with the bank: always paid our mortgage for past 8yrs but 5mths ago it became difficult and currently we have a temporary short term arrangement "rescheduled payments" which ends next month but our circumstances have not changed and we need to approach the bank again to discuss extending this.


How important is retaining the family home to you?
Which of the following best describes your situation?

I really want to keep the family home even if it means having a large mortgage and negative equity for years to come...


Any other relevant information: Husband pays weekly child maintenance 50euro weekly (court order)

What is your preferred realistic outcome?
we want to discuss a long term realistic option with our bank but we are not sure of our options when approaching them
 
I am a bit confused. You seem to have a husband and a spouse. I don't think that the Insolvency Service's guidelines can cater for that.

Could you clarify your personal situation please.

Reasonable Living Expenses:
Total Before Deductions - 2,080.93
Third/Fourth Child Adjustment - 0.00
Less Child Benefits - (260.00)
Total Set Costs - 1,820.93
Special Circumstances - 150.00
Total Costs - 1,970.93

Available For Creditors:
Net Income - 476.00
Net Income - Partner - 1,395.00
MIS - €100
Mainentance - €200
Total Net Income - €2,171
Reasonable Living Expenses - 1,970.93
Available For Mortgage - €201

As you can contribute only €200 a month towards your mortgage, Ulster Bank will not be able to offer you a long term solution, other than repossession. UB don't do split mortgages. They might offer you a temporary interest rate reduction.

If you have both been unemployed since 2008, how did you pay your mortgage? Was it from savings.

What are your employment prospects like?

When your personal situation is clearer, we might be able to offer more meaningful suggestions.
 
No, not getting DCA, I applied and was refused and i'm not entitled to carers half rate etc.. as i'm a job seeker.
 
pm
Brendan Burgess said:
I am a bit confused. You seem to have a husband and a spouse. I don't think that the Insolvency Service's guidelines can adapt to that.

Could you clarify your personal situation please.

Reasonable Living Expenses:
Total Before Deductions - 2,080.93
Third/Fourth Child Adjustment - 0.00
Less Child Benefits - (260.00)
Total Set Costs - 1,820.93
Special Circumstances - 150.00
Total Costs - 1,970.93

Available For Creditors:
Net Income - 476.00
Net Income - Partner - 1,395.00
MIS - €100
Mainentance - €200
Total Net Income - €2,171
Reasonable Living Expenses - 1,970.93
Available For Mortgage - €201

As you can contribute only €200 a month towards your mortgage, Ulster Bank will not be able to offer you a long term solution, other than repossession. UB don't do split mortgages. They might offer you a temporary interest rate reduction.

If you have both been unemployed since 2008, how did you pay your mortgage? Was it from savings.

What are your employment prospects like?

When your personal situation is clearer, we might be able to offer more meaningful suggestions.
Click to expand...

Firstly net income both husband and I is 1,828euro pm (that includes MIS) and the child maintenance is a minus as this is paid out weekly. As already said, we have been paying 150euro for the past 5 months but this reverts back to 800euro approx. with new increased payments from next months and we wont be able to afford this.

Yes we have been paying for our mortgage without fail in full since 2008, we basicly made that our priority (don't drink smoke go out etc..) but since my husband started this training course, petrol money to get there and the MIS was reduced this made it impossible to pay mortgage and left us with no choice but to discuss a reduced payments.

Employment prospects, very high i'd like to think my husband gains a qualification and is determined to return to employment, so we definitely need a further 6months assistance from the bank
 
Hi eva

I still don't understand your situation or your numbers, but anyway...


Employment prospects, very high i'd like to think my husband gains a qualification and is determined to return to employment, so we definitely need a further 6months assistance from the bank
Click to expand...

This is one of the many cases where you don't need a long-term solution. You have a short-term problem. Based on your current income, you could not meet the repayments on a split mortgage. But after your husband gets a job, you may not need any solution at all, other than capitalization of arrears maybe.

Spell this out very clearly to UB. They spoke about reducing interest rates for customers at the Dail Finance Commitee hearings last week, so maybe ask for a reduction in interest rates for a year.
 
Hi Brendan,

Thanks for your response, yes I have written a letter today to UB and asked for a further extension or interest only etc... as we are hoping it will only be for a further 6mths and financially things will change after that.

Hope I am being clear on my situation, both I and my husband have always maintained our mortgage in full even through our unemployment but recently MIS was reduced and his travel costs have made it impossible but were hoping this is only temp until the training course finishes in april 2014.

Also, as already explained our total sw payment weekly is 432.oo plus 25e MIS that's our complete weekly income, then less reasonable living costs plus my husband pays out a court order child maintenance 50euro weekly.

Anyway, thankyou Brendan... we will see what response UB give us regarding a further extension.
 
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