Will my “payment end date” automatically increase with a Vulture Fund.

[REDRUNNER]

Hi there,
I’ve previously been on here seeking advice when transferred to pepper (CarVal) after KBC left the market.
I availed of a 2.6% fixed rate back then, and it’s due to end in Dec 2026.
I’ve approximately €162,000 left on my mortgage due to end in 2046. I’m 48 now so I’d be 70 when it’s paid…or so I think!
I know the interest rates will shoot up in 2.5 yrs.
I’ve been trying to calculate from what I’ve been paying €805 a month, adjusting interest approx as the principal reduces, I’m panicking a bit as it’s not adding up for me…please tell me they can’t increase the product end date (age 70) without prior convent.
In update to my original quest last year to try and get away from these guys via a remortgage, (I’ve never missed a payment, just restructured the term amount and was sold on) no luck no bank or credit union will allow me switch, I’m only on €32,000 my wife is carer for her mother and that’s not taken into account unfortunately. I’m thinking if pepper comes back with a massive increase in Dec 2026 maybe a PIA might force some kind of deal (fixed rate, not reduced amount) what’s everyone’s thoughts on that? I’m the sole name on the mortgage…it’s been my home for 18yrs and home to my wife and two children also, I’d appreciate any thoughts.

 

[Brendan Burgess]

I availed of a 2.6% fixed rate back then, and it’s due to end in Dec 2026.
I’ve approximately €162,000 left on my mortgage due to end in 2046. I’m 48 now so I’d be 70 when it’s paid…or so I think!
I know the interest rates will shoot up in 2.5 yrs.

If you meet your scheduled repayments, your mortgage will be cleared on the scheduled date.

They can't just say "Let's add 5 years to Redrunner's mortgage for the craic.".

If you do not meet your monthly repayments, then your mortgage will not be cleared by the scheduled date and so you still be paying it in your 70s.

They can increase the interest rate in Dec 2026 but don't worry about that now. Wait until then.

In the meantime, get onto your TD about the lack of any control on the rates charged by vulture funds and the assurances given by the Minister for Finance and Central Bank that cusomers of vulture funds would be no worse off with vulture funds.

Brendan

 

[Brendan Burgess]

I availed of a 2.6% fixed rate back then, and it’s due to end in Dec 2026.
I’ve approximately €162,000 left on my mortgage due to end in 2046. I’m 48 now so I’d be 70 when it’s paid…or so I think!
I know the interest rates will shoot up in 2.5 yrs.
I’ve been trying to calculate from what I’ve been paying €805 a month, adjusting interest approx as the principal reduces, I’m panicking a bit as it’s not adding up for me…

Your figures look spot on to me.

 

[REDRUNNER]

Thanks Brendan,
You’ve been very helpful, I appreciate the calculations. I have been in contact with my local TD twice, but I’m not yet in bother so I’m just voicing my concerns for the future, I’ll continue to raise the issue with him.