Pepper wants to know how I intend to clear the warehouse

[Patcar]

Pepper took over my mortgage from PTSB.
I have a split mortgage. The wearhouse part of mortgage is due to be paid off in five years. Its 90, 600 . Ive approximately 20, 000 left of part im paying on. There is a lot of equity in the home. Currently value 475,000 .
Pepper are putting pressure on me to give them an answer as to what I'm going to do to pay off 90,600. They have given me three proposals. I don't agree with their proposals.
My question is can I sell my home now and downsize . Without interest being paid on wearhouse part of mortgage?
I'm 61 years old.

 

[Brendan Burgess]

Hi Pat

Can I clarify what you are asking

1) You have a total mortgage of €110,600
2) Of this, only €20k is active - i.e. you are paying capital and interest on this. How much is your monthly repayment? Can you afford more?
3) You have a warehouse of €90,600 on which you are not being charged any interest and on which you are making no repayments.

4) How many years are left on your mortgage? I presume it is 5 years.

5)

The wearhouse part of mortgage is due to be paid off in five years.

ptsb split mortgages had a clause in them to allow them to review the mortgage every year.
I presume that Pepper is now doing that.
They want to move some or all of the warehouse to the active part.

So I presume the whole mortgage is due to be paid off in 5 years. It just happens that most of the mortgage is in the warehouse.

6) What proposals are Pepper putting to you now?
7) What is your financial position? What mortgage repayments can you afford to make?
8) Do you want to keep your house or do you want to trade down?

 

[Clamball]

Will you be retiring at 65/66? Do you expect a lump sum from your pension. I am guessing this is how many plan to pay off a warehoused amount.

Otherwise if you sell now, how much do you want to pay for a new house, and are there affordable premises in the area you want to buy? 475-90.6-20 leaves you with €364400 but there is the cost of sale and purchase and moving and possibly rental before purchase of new home.