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Unforeseen circumstances can completely derail your financial plans and even affect your ability to repay Mortgage payments on time. As time passes, this Mortgage with its interests and penalties can turn into a monstrous sum. One of the best things to do in these situations is not to run and hide. It’s otherwise, you need to go ahead and ask your bank for a Debt Restructuring.
[/vc_column_text][vc_custom_heading text=”What is Debt Restructuring?” use_theme_fonts=”yes”][vc_column_text css=”.vc_custom_1590460830918{margin-bottom: 20px !important;}”]It’s a legal way in which you can alter the terms of your Mortgage contract to repay your outstanding Debt obligations. Based on your financial situation and repayment track record, banks can provide you relief with an extended timeline, lower-interest-rate or step-up option for your Mortgage Debt.[/vc_column_text][vc_custom_heading text=”The 5-step process for Debt Restructuring” use_theme_fonts=”yes”][vc_row_inner][vc_column_inner width=”1/6″ offset=”vc_hidden-xs”][/vc_column_inner][vc_column_inner width=”5/6″ css=”.vc_custom_1590519362231{margin-left: -115px !important;}” offset=”vc_hidden-xs”][vc_column_text css=”.vc_custom_1590494493921{margin-right: -80px !important;margin-bottom: 20px !important;}”]
- Before you plan to talk to your bank, you will have to create a summary of your current financial situation. It should include all outgoing expenses and other debts including credit cards and personal loans. Follow a total transparency protocol.
- Next step should be keeping an account of your current expenditure including personal living expenses, education expenses, medical etc to help the bank realise that you will fall short of paying the monthly instalment amount on your Mortgage.
- The restructuring evaluation will be based on total household income including the rental income of the property and spouse income. Ensure you have all the proofs available when discussing with the bank.
- Continue to make payments to the bank even at the reduced sum which will go a long way to display your intent to pay despite the reduced ability.
- Approach the bank with all the paperwork and data you have collected to figure out a repayment strategy. Be persistent in your approach by providing all relevant information and data required by the bank.
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner css=”.vc_custom_1590519929300{margin-left: 5px !important;}”][vc_column_inner offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_column_text css=”.vc_custom_1590519817244{margin-bottom: 20px !important;}”]
- Before you plan to talk to your bank, you will have to create a summary of your current financial situation. It should include all outgoing expenses and other debts including credit cards and personal loans. Follow a total transparency protocol.
- Next step should be keeping an account of your current expenditure including personal living expenses, education expenses, medical etc to help the bank realise that you will fall short of paying the monthly instalment amount on your Mortgage.
- The restructuring evaluation will be based on total household income including the rental income of the property and spouse income. Ensure you have all the proofs available when discussing with the bank.
- Continue to make payments to the bank even at the reduced sum which will go a long way to display your intent to pay despite the reduced ability.
- Approach the bank with all the paperwork and data you have collected to figure out a repayment strategy. Be persistent in your approach by providing all relevant information and data required by the bank.
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_custom_heading text=”Factors that can affect your chances?” use_theme_fonts=”yes”][vc_column_text css=”.vc_custom_1590460916042{margin-bottom: 20px !important;}”]There is no single plan that fits every Mortgage borrower for restructuring. The chance of receiving it depends on many factors such as:
- Your credit history that measures your ability to pay the Mortgage before you faced a financial crisis
- Even though the UAE banks have scrapped the 70-years upper age limit for borrowers, your age and capacity to work will play a role in the bank’s decision
- The market value of the property will play a critical role. If the property value covers the current loan outstanding the bank can demand foreclosure of the loan rather than a restructuring of the loan
- If you are married, you will also have to submit the financial record of your spouse to provide complete transparency.
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Depending on these factors and more, banks can reduce the interest rate of the loan, increase the loan tenure, provide a payment holiday or reschedule the interest and principal payments.
[/vc_column_text][vc_custom_heading text=”How can FREED Financial Services help?” use_theme_fonts=”yes”][vc_column_text css=”.vc_custom_1590461225393{margin-bottom: 20px !important;}”]
Doing things on your own can be pretty daunting and might not yield a favourable result. We specialise exclusively in Mortgage Debt Management and have the expertise and experience to help you find the right solution. Our key affiliations with banks will ensure you are represented in the best way possible from start to finish until you receive a favourable repayment option.
We will:[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][stm_icon_box box_style=”style_4″ alignment=”center” icon=”fa fa-calculator” icon_size=”40″]Analyse your financial situation[/stm_icon_box][/vc_column_inner][vc_column_inner width=”1/2″][stm_icon_box box_style=”style_4″ alignment=”center” icon=”stm-suitcase-2″ icon_size=”40″]Represent you at the bank[/stm_icon_box][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width=”1/2″][stm_icon_box box_style=”style_4″ alignment=”center” icon=”fa fa-university” icon_size=”40″]Negotiate with the bank[/stm_icon_box][/vc_column_inner][vc_column_inner width=”1/2″][stm_icon_box box_style=”style_4″ alignment=”center” icon=”stm-nokia_outline” icon_size=”40″]Get a favourable Mortgage Debt Restructuring plan[/stm_icon_box][/vc_column_inner][/vc_row_inner][vc_column_text css=”.vc_custom_1590461197800{margin-bottom: 20px !important;padding-top: 40px !important;}”]
Write to us with your details at info@freeduae.com and get a free consultation call today
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