Mortgage

[Newbie2009]

Hi everyone,

Im sorry if Im posting this in the wrong forum.. a friend recommended I post on politics.ie to get informed feedback. So here goes...

Im looking for some advice...

At the moment I have a mortgage, visa card and a personal loan. Im finding it very hard to meet all the repayments in time, but so far I have managed it.

I contacted the bank and asked them for a mortgage break to clear my outstanding visa balance and my personal loan, which would leave me in a better position to manage my mortgage.

Currently my mortgage is approx 60% of my take home pay, but I am a public servant and in the last 3 months my take home pay has been down approx €400. I've always had to budget very tightly, but with this reduction in income, things have become even worse.

Anyway, the bank refused! They said that my first priority should be my mortgage and that I need to make alternative arrangements with my visa company and loan company instead.

I feel this is completely unfair. I thought the bank would have supported me in trying to clean up my finances, and hence not lapse on any mortgage payments etc., but no.

I would appreciate any opinions/suggestions anyone might have?

Thank you

[feargach]

Ouch! What will "making an arrangement" with the visa card company do to your credit rating?

It might be better for you to go to relatives and friends to gather enough cash to clear the CC bill. Offer to do things in return like mow their lawn, wash their car, mind their kids etc. You'll repay in full, and the work you offer might be seen as interest.

Have you any possessions that you might offer them as security?

Odds are that they will refuse this: people don't like doing "business" with people they are close to; they'd rather give, not exchange, so do not insist on paying interest or what not. But make it clear that there's no non-money service that they can't ask you in return.

My advice is: get good advice. Go to MABS.

[MM FF]

i would suggest taking more responsibilaty with you borrowings in future before you commence attacks on the govt

[Oriel27]

threaten to give them back their keys, they wont be long about facilitating you then.

remember, the bank dont want the house back. its up to them to help you in times like this.

[Newbie2009]

What attack? I am merely explaining my situation. Im here looking for advice? Im taking responsibilty for my borrowings, thats why I was in contact with the bank in the first place!!! I most certainly am not attacking anyone!!!

[Oriel27]

What attack?

what ye mean..

its not an attack at all, its being honest. tell them you dont want the hassel of a mortgage if they are not prepare to help you.

[jake76]

They said that my first priority should be my mortgage and that I need to make alternative arrangements with my visa company and loan company instead.

Your first priority should be to yourself. You are paying more interest on CC and loan than your mortgage.

- Arrange for you pay to be made to another bank rather than your mortgage bank if it is not done already.
- Make some payment towards your mortgage(maybe the interest portion) but prioritize paying you CC and loan down ASAP.
- Start making payments on mortgage as normal as soon as possible.

It will take at least a year for the banks to try and bring legal action against you.

N.B. I am not a legal expert or trained to give financial advise.(but that ain't stopping me)

[cactusflower]

You haven't said how much there is on the Visa, but the interest rate on that is probably a killer. Get on ebay, sell your wife, lawnmower and papal medals to clear it.

Have a look at additional income. Are you claiming every you're entitled to? getting all your tax allowances? check your bank statements for errors for the last few years.

[EoinMn]

Go to MABS.

The credit card has the highest rate of interest so you'll need to pay that back first. Maybe you could consolidate it with the loan?

[Newbie2009]

Hi guys,

we not talking huge amounts of money here. My income is modest and so are my bills. If I could pay off my visa and loan, it would save me about €400 per month, which would give me a bit of breathing space when it comes to my mortgage etc.

Thanks a million for all your replies... I hope no-one thinks Im attacking anyone/thing... just looking for advice..

My CC is currently at 0% interest.. Im a bit of a CC Tart... moving every 6 months, and my loan is at the lowest rate available also.

I have exhausted all my tax allowances etc too

Thanks you