Pepper Mortgage - high interest rate and capital not going down much

[Kingoftench]

Moderator's summary :
We got into difficulty
We had a split mortgage until 2018
Since 2018 we have been on full capital and interest

I have deleted the irrelevant stuff

Hi any advice welcome we bought our house back in 2007 €235 000 Euro and like so many on here got into difficulty and PTSB offered us a split mortgage and we did everything by the letter of the law never missed new revised payment etc but again like so many on here we got the dreaded letter that pepper was taking over the loan.
Again like so many on here we have been waying up our options and we rang pepper and they said everything is perfect and that we could switch to another lender no problem if we wanted too (and by the way that’s what we will be doing).
This is where the story gets to the grey area that I have come here to post my question.
Firstly like I have seen on other threads getting any form of statement etc from pepper is like pulling hens teeth it was our 6th phone call over last couple of months and in the end a written letter that toke them to send out the statement which only shows us a couple of months and the statements are actually dated to day the phone call made WHY DID THEY NOT SEND THEM?? and

what really made us both feel sick was the closing figure 193000 odd now maybe we are wrong but since 2007 with spit mortgage etc we sat down and we have an over all monthly average payment of 1000 Euro constantly for the last 14 years which equates to 168 months

now I am no mathematician but interest etc surely something is wrong with the figures simply what it all means is in 168 months we have payed a measly 42000.

When we sat and investigated further the statement conveyed to us that we payed €2195.19 in interest out of the total 3 months payments of €3297.21 and this has been obviously constant for how long we don’t know probably from the outset of the switch

And another thing imagine saying we are 15cent in arrears unbelievable also along with this statement we got an IBAN and Bic from pepper so as we can pay them what is owed and that they can take there money and ride into the sunset we think not on the month of Sundays until we get to the nuts and bolts of all this.
Find attached statement
Thanks in advance

 

[Brendan Burgess]

It's hard to guess what has happened since 2007. But people are often surprised at how slowly their capital has fallen.

Based on the last 3 months.
You were charged €2,195 interest.
This equates to an annual interest charge of about €8,700
Which is an interest rate of 4.5% on €193k

So I am guessing it's just an expensive mortgage.

Brendan

 

[Kingoftench]

Firstly thanks for the reply’s and I understand I ranted on a bit much and as I am working a shift I won’t be able to provide anymore info today but I will try root out some more info tomorrow bottom line is

we are just bewildered after 14 years of paying and accepting the fact our mortgage was split etc that we effectively only have 42000 payed and

my wife rang this evening to say our interest rate is going up to 6.5 % on 17th of next month so as I say ranting earlier in original post wasn’t any use to you guys but I think there was a lot of worry been translated into the post to be honest and if my own estimates are right this interest hike is going to add another 210 euro a month roughly

 

[ClubMan]

Depending on how and when the split was done it's quite possible that your capital balance has only fallen from €235k to €193k over 14 years.

For comparison purposes, if it was a straightforward repayment mortgage (not split) over 30 years at say 5% over that time (obviously just a simplifying assumption) your capital balance would be c. €153k now based on this calculator (and the Annual Table button).

Karl's Old Mortgage Calculator, Ireland

Mortgage calculator with graphs, amortization tables, overpayments (Ireland)

www.drcalculator.com

 

[Kingoftench]

These are documents I came across from restructure and as far as I am reading the original rates that came from PTSB etc were to be continued for anyone that takes time to look and help my wife and I really appreciate it thanks in advance

 

[Brendan Burgess]

What date is this from?
You are no longer on a split mortgage.

Brendan

 

[Kingoftench]

View attachment 6854
What date is this from?
You are no longer on a split mortgage.

Brendan

03/12/2018 we received this agreement and yes we are on full Capital and Interest

 

[Kingoftench]

I'm not giving you a hard time but your posts are very confusing in spite of you being given advice on how to post more clearly. If you just want to rant then fire away and don't expect useful feedback from me or maybe others. I have better things to be doing than being reprimanded for trying to help.

I'm not giving you a hard time but your posts are very confusing in spite of you being given advice on how to post more clearly. If you just want to rant then fire away and don't expect useful feedback from me or maybe others. I have better things to be doing than being reprimanded for trying to help.

I will be as clear as I can in 14 years we have 42000 payed off of 235000 and our mortgage was split by PTSB and sold to Pepper which I accept I wasn’t clear about we are paying the full mortgage and we can’t understand when switched over it states on one of the documents above that PTSB rates should follow us going forward and in last 2 months it has gone from 4.5% to 5.75% and now to 6.5% so if we could move on from the fact and for which we are sorry bout for not been clear about the status of the mortgage any help we much appreciate.Apologies again and as I said to Brendan we are not as well versed as most on here and we honestly got down the files today for first time since we got this all changed in 2018.

 

[Kingoftench]

Moderator's summary :
We got into difficulty
We had a split mortgage until 2018
Since 2018 we have been on full capital and interest

I have deleted the irrelevant stuff

Hi any advice welcome we bought our house back in 2007 €235 000 Euro and like so many on here got into difficulty and PTSB offered us a split mortgage and we did everything by the letter of the law never missed new revised payment etc but again like so many on here we got the dreaded letter that pepper was taking over the loan.
Again like so many on here we have been waying up our options and we rang pepper and they said everything is perfect and that we could switch to another lender no problem if we wanted too (and by the way that’s what we will be doing).
This is where the story gets to the grey area that I have come here to post my question.
Firstly like I have seen on other threads getting any form of statement etc from pepper is like pulling hens teeth it was our 6th phone call over last couple of months and in the end a written letter that toke them to send out the statement which only shows us a couple of months and the statements are actually dated to day the phone call made WHY DID THEY NOT SEND THEM?? and

what really made us both feel sick was the closing figure 193000 odd now maybe we are wrong but since 2007 with spit mortgage etc we sat down and we have an over all monthly average payment of 1000 Euro constantly for the last 14 years which equates to 168 months

now I am no mathematician but interest etc surely something is wrong with the figures simply what it all means is in 168 months we have payed a measly 42000.

When we sat and investigated further the statement conveyed to us that we payed €2195.19 in interest out of the total 3 months payments of €3297.21 and this has been obviously constant for how long we don’t know probably from the outset of the switch

And another thing imagine saying we are 15cent in arrears unbelievable also along with this statement we got an IBAN and Bic from pepper so as we can pay them what is owed and that they can take there money and ride into the sunset we think not on the month of Sundays until we get to the nuts and bolts of all this.
Find attached statement
Thanks in advance

Thanks for re doing the post and apologies that I wrote it wrong there was no bad intentions meant

 

[Brendan Burgess]

Hi King

I have tidied up your posts by striking through the rants. So that people won't give up reading your posts.

There are two issues.

1) The interest rate you are on.
I am shocked by this and have started a second thread on it here:

Pepper now charging former ptsb customers 6.5%

my wife rang this evening to say our interest rate is going up to 6.5 % on 17th of next month Hi King Even for Pepper this seems very high. If you have a letter to this effect, could you attach it to a post. Brendan

www.askaboutmoney.com

 

[Brendan Burgess]

The second issue is how disappointed you are that the capital has not reduced much.

In 2018, you had a mortgage balance of €219k

The interest rate was 4.5%

That means that they charged you interest of almost €10k a year.

Your repayments were €1,100 a month or about €13,000 a year.

That means that you were reducing the capital only by about €3,000 a year.

This might help to explain it:

If the interest rate rises, the repayments will rise as well.

Brendan

 

[Brendan Burgess]

In December 2019 , you owed €219k .

You now owe €193k

So you have actually paid off €26k capital or about €8,000 a year.

Based on the incomplete information I would have thought you had only paid off capital of about €9,000 in the last three years.

But, to be honest, it's like completing a jigsaw with a lot of pieces missing.

You would need to get annual statements from Pepper for every year to track what has happened to your mortgage balance.

Brendan

 

[Kingoftench]

In December 2019 , you owed €219k .

You now owe €193k

So you have actually paid off €26k capital or about €8,000 a year.

Based on the incomplete information I would have thought you had only paid off capital of about €9,000 in the last three years.

But, to be honest, it's like completing a jigsaw with a lot of pieces missing.

You would need to get annual statements from Pepper for every year to track what has happened to your mortgage balance.

Brendan

Thanks a million look Brendan we will probably get onto a mortgage company of some kind maybe a broker or something and try get proper help we will definitely try switch away if we can sure the lent of time it toke to get the measly statement they sent us I wouldn’t care to try to get full statements but look we will seek some professional help and thanks for everything I will keep tuned in to other thread about the interest hike it’s worrying times for us here and so many others pepper will probably not stop these hikes here.
Thanks again

 

[Paul F]

03/12/2018 we received this agreement and yes we are on full Capital and Interest

we will probably get onto a mortgage company of some kind maybe a broker or something and try get proper help we will definitely try switch away if we can

@Kingoftench So it appears that you have not been on a split mortgage since around December 2018. (You have been paying full capital and interest since then.)

As far as I know, it takes 5 years for the split mortgage to disappear from your credit record. That would mean that you won't be able to switch to another lender until December 2023. @Brendan Burgess Is that correct?

 

[Brendan Burgess]

@Paul F

Agree. I doubt very much he will be able to switch. But there is nothing wrong with trying.

Go to a mortgage broker though. Bank of Ireland is the most flexible with people who got into difficulty but who behaved responsibly and have been paying their mortgage on schedule.

Brendan