Pepper Finance- Purchasing Ulster Bank Loan

[financialtips]

Hi Guys,

Quick question.. With Ulster bank closing Pepper Finance have purchased a loan my parents have. This has always been performing, never a missed payment etc. Is there any known issues with continuing the final two years with Pepper or would it be advisable for them to settle it via finance from somewhere else?.

 

[MrEarl]

Hello,

If the loan is performing to terms, then they don't have to do a thing. They can continue to pay until maturity of the loan.

I'd say it's extremely unlikely that Pepper will give discounts to those offering to repay their loans early, so I don't see any point in looking to repay, or refinance (unless your parents need a top up loan, secured on the same property that secures the current loan, at some stage).

 

[Brendan Burgess]

It would depend on the type of interest rate.

If it's fixed, Pepper can't do anything about it.

If it's variable they will jack the rate up and you should be able to borrow cheaper elsewhere.