Example of a Financial Review
Below is an example of how our financial review could assist a family* to manage their debt and meet their mortgage repayments. Their monthly budget is as follows:
| Expenditure | |
|---|---|
| Mortgage | £1,500 |
| Car loan | £250 |
| Car tax, insurance & running costs | £300 |
| Home Phone | £82 |
| Electricity and Fuel | £230 |
| Food & Clothing | £820 |
| Mobile Phone | £40 |
| Home & Life Insurance | £140 |
| Health Insurance | £200 |
| Credit card | £100 |
| Total Outgoings | £3,662 |
| Income | |
|---|---|
| Salary | £3,100 |
| Child benefit | £260 |
| Total Income | £3,360 |
| Total Deficit | - £302 | |
|---|---|---|
This example results in a monthly shortfall of £302.
Following the financial assessment, Ulster Bank agreed to temporarily reduce the monthly mortgage repayment to £1,107.50 for six months.
This resulted in a monthly excess of £54.50 for the customer.
In this example it is important to understand that the reduced repayment is less than the amount required to cover the monthly mortgage payment. Therefore the mortgage balance and the interest due will continue to increase until such time as this shortfall is fully repaid.
Every customer's circumstances are different so our Ulster Bank staff will review your situation and then discuss some solutions potentially available to you. Our trained advisors will explain any proposed alternative repayment arrangement and provide you with written details.
The arrangement will then be reviewed by Ulster Bank within six months. As part of this review we will contact you to discuss whether there has been any change in your individual circumstances. That way we can determine whether the alternative arrangement is still appropriate for you.
All options will be offered for a defined period of time and are subject to specific terms and conditions.
During any repayment option, interest will still accrue and may increase the total amount repayable. At the end of any reduced repayment plan, your monthly payments may be higher then they were prior to the plan.