We can't afford our mortgage, because we support our parents

[joseph]

we have a two bed house in north dublin, bought in 2006 for 350,000. we had to fix it for ten years in 2007 because the bank(ebs) woundnt fix for any period less than ten years at that time. it fixed at a high rate over 5. we made full repayments until 2012. we went in to arrears in 2012. we are still in arrears. our monthly repayment is over 1700 at the moment which we cannot meet. whats our best option, we applied to the bank several times for a long term solution. they say the mortgage is affordable, what can we do. below are the detais.
Income details
Net monthly (i.e. after tax) Income self: 2600 public servant

Net monthly:1200
Amount of child benefit received : 270


Do you need a car for work or do you use public transport? yes

Number of children 4 - 11 years old: 2

Monthly childcare costs: 300-400
Monthly spend on special circumstances: we need to cover elderly care cost(400)which the bank doesnt agree. but we cant ignore the parents



Home loanLender: ebs
Amount outstanding: 327000
Value of home: 200000
Interest rate: fixed rate above 5
Monthly repayment 1720
Amount in arrears 18000

Have been on interest only for 18 months in total

Credit Card - 500 boi
Term loan 1 : 9000 boi
Term loan term left: 4years
Term loan - monthly repayment: 274

trrm loan 2 - amount outstanding: 8000
monthly repayment : 245, 4 years

no savings and investments

Do you expect any lump sums in the medium term future? yes at the age of 65. im 38 at the moment.


I really want to keep the family home because i have nowhere else to live. kids go to nearby school.

any advice please.

 

[cremeegg]

Hi Joseph and welcome to aam. I hope you will be able to get some useful advice here.

Can you have a look over your post and perhaps clarify some points.

On the figures above, the monthly income €2,600 +€270=€2,870 is less than the outgoings (€350+€400+€274+€245+€1,720=€2,989) before groceries etc.

Is there a second income in the house that you have forgotten to include?

What mortgage payments are you actually making at the moment. Have you been making them consistently.

 

[Bronte]

I took it the income was 2,600 + 270 + 1200 = 4070 Less the 2939 outgoings leaves 1131 a month.

We need to know the other outgoings. How much is paid towards the credit card. Groceries and Utilities. Petrol, insurances etc.

Also need to know why parents are being paid for while he is going into 18K of arrears in his mortgage.

Does the monthly mortgage repayment of 1700 cover paying down the arrears or what is the arrangement with EBS in relation to the arrears.

What is the fixed interest rate? How much is the variable rate? At age 38 there is 27 years left until retirement, already paid nearly 10 years of mortgage, but probably a 35 year mortgage so maybe no room for manoevre there.

Have you talked to Mabs?

What were those personal loans for originally. Did EBS also sanction those?

Joseph if you can figure out how to change the thread title it would be better for you.

 

[thedaddyman]

you say you are paying 400 per month to support your parents. Why and why are the EBS rejecting this?. it might be worth contacting the social welfare office to see if they are missing out on some payment they may be entitled to

 

[Bronte]

Why and why are the EBS rejecting this?.

Presumably it's because parents are not dependants. It's not the same as children. All the EBS will be seeing is money going elsewhere other than paying mortgage and debt while getting into further arrears. I don't think the Insolvency servcice would allow this either in their calculations for what is allowed and not allowed. Maybe there are special circumstances for this case.

 

[44brendan]

I really want to keep the family home because i have nowhere else to live. kids go to nearby school.
any advice please.

I can't reconcile this aspiration with a continuity of paying IO on the mortgage facility. You are presumably in MARP but virtually any bank at this stage would be considering a MARP exclusion and calling in the facility. OP you need to obtain professional help here as your current approach is unrealistic and will only lead to re-possession. Comments above re parents are apt and also the fact that you are re-paying unsecured loans in priority to your mortgage. EBS tend to procrastinate on action for a number of years but then very quick to appoint solicitors and commence legal action. You need to obtain a good advisor and address this issue as a matter of urgency.

 

[Brendan Burgess]

I am with EBS on this one.


You are contributing €400 a month towards your parents.
You are paying €274 to BoI on a loan
You are paying another €245 on a second loan.

You could be paying this €900 a month and meeting your full repayments.

You should talk to the Irish Mortgage Holders Organisation.

If you take a realistic attitude and prioritise your mortgage, EBS might reciprocate. They might split part of your mortgage which they can well afford to do given the very high interest rate you are paying. But they won't do a deal so that you can fund your parents' care and keep up other , much more expensive loans.

Brendan

 

[Slim]

Hi Joseph. Can you clarify what the nature of your support for your parents is exactly? Are they in a nursing home? Are there other family members contributing also?