PTSB Split Mortgage Sale to Glenbeigh/Pepper Mortgage Protection

[Lizzie00]

Have a couple of queries that are stressing me around my mortgage being transferred to Pepper.

1. We have our mortgage protection insurance policy with PTSB and they have stated in their letter that "If you pay any of your insurance policies as part of your mortgage repayment then you will need to take some action in advance of the transfer. We will write to you in advance of the transfer to outline exactly what you need to do."

My partner is now in his mid 50's and owing to health issues cannot get cover. These health issues were not declared back in 2013 when the split mortgage was being sought. As a result the current insurance policy with PTSB is useless but is costing us nearly €200 per month. Recently I have attained my own separate policy (€32 per month) so am fully covered. Is there a chance that Pepper may not accept that my husband cannot get cover? I understand that once over 50 it is at the discretion of the lender but am extremely worried that this could be an excuse to force us to sell our home.

2. Also my review is due in the summer and I have always agreed that from July 2019 we will be able to revert to full mortgage payments. Is there a chance that Pepper could force us off our tracker rate?

 

[Brendan Burgess]

Hi Lizzie

Your policy is not with ptsb. They are just agents - so you policy is probably with Irish Life.

The only thing which changes is the way you pay this. ptsb will no longer have a relationship with you, so you will have to set up a direct debit with Irish Life.

These health issues were not declared back in 2013 when the split mortgage was being sought. As a result the current insurance policy with PTSB is useless but is costing us nearly €200 per month.

I don't understand why it's useless? It might not be enough to cover the balance on your mortgage as the balance is higher than it would otherwise have been. But that has nothing to do with the sale.

Also my review is due in the summer and I have always agreed that from July 2019 we will be able to revert to full mortgage payments. Is there a chance that Pepper could force us off our tracker rate?

No. None at all.

If you are paying your mortgage in full, then why would they try to get you off the tracker?

And to be fair to all the lenders, vulture funds, non-banks etc., none has tried to get people in arrears off trackers for family homes as far as I know.

Brendan

 

[Monbretia]

Did you mean that you took out a new policy when the split was arranged and did not declare some health issues? Is that why it is useless?

 

[Lizzie00]

Ah yes, it is with Irish Life. Apologies, I declare it is useless because it will never pay out as we hadn't declared significant health issues (addictions) which were then declared on my last Standard Financial Statement review where I had to produce receipts for hospital bills, counselling and prescriptions. This led them to make me sign a waiver that they could share same information with appropriate PTSB entities. Very hard to comprehend the stupidity of not declaring but at the time it was a very sinister situation which I couldn't control and was just wanting to safeguard our family home. This is why I need to figure out if Pepper will take on board that husband won't have mortgage protection cover - can they make it difficult for me?

 

[Monbretia]

Kind of pointless to be paying 200 a month though for something that is void, can you not just cancel it and use your own and a waiver for other person?

 

[Lizzie00]

Yes Monbretia, that's what I am planning to do. Was just wondering if they will automatically waiver it and haven't had the guts to progress it until this letter arrived in yesterday.