Help us on let the banks accept our already existing mortgage loan.

About us

We are a simple family of four. Two young kids, one 4 years old and another 11 months.

I'm a full time employee and my wife is unemployed but taking care of the kids.

The only debts we have are our mortgage and our car credit that of a second hand car that we acquire last year due the need to go to work and because of the family growth.

The situation

When our first kid was born, me and my wife decided it was time to settle and buy a house, so after much searching we found a affordable house (130k) being sold by the bank. At the moment we already payed 10k so we are just owning 120k to the bank.

At the time the prices were already going up and for this house and already thinking in a second child it was the best and cheaper we could buy.

The contract made was for the first 5 years at a fixed rate, and after the 5 years, it would increase the tax rate + spread.

Last year, as referred before we bought a car a second hand car of 9k due the necessities and everything was fine. The credit was accepted without any blockage.

Now, the 5 years period is ending (next month of December) and our mortgage will increase a lot. We are trying to move our mortgage to other banks that are making a very lower spread but we are being refused because they say our effort rate is to high, probably because of the car credit. Which it makes no sense, because we would pay less monthly, therefor less probability of default, but it is what is is.

Since i'm the only one working and it's not worth at least until both kids being at public school for her to start working, cause the price we would pay for both schools would be more than the wage she would get.

Since 5 years now, the price of the houses raised a lot and selling our house, we could get more money but we wont be able to buy any near the conditions of this one that is suitable for a family of four. Due to the insanity prices that are being practiced here, with the price of our house we could only buy something with the half size of this.

The Solution

The only solution we have is to try to pay the car credit and see if they accept the change and since due to our family situation we cant make any saving we need to recur to this or at least try to reduce the credit as much as we can so we can be acepted.

This way we could change the mortgage and not being in risk of entering in default.

Please pledge and help us solving this situation! Many thanks.