To my knowledge, most or all variable rate loan agreements (with the obvious exception of trackers) place absolutely no restrictions on when and by how much the lender can change the interest rate payable. As I mentioned before, I helped someone to take a case against BOI to the Ombudsman about 10 years ago that this constituted an unfair contract in breach of the relevant EU law but, unfortunately, they rejected it.
Pepper now charging former ptsb customers 6.5%
- Thread starter Brendan Burgess
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Fleetwoodfan
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No!!!
The pepper agent mentioned fees when we questioned her why the new monthly payment was so high and I still to this day have no idea.Both my husband and I were on the call and we both heard her say it so that is why I requested a full and thorough breakdown,something similar to an amortisation table.I am still waiting so I an get a professional to look at it.She mentioned by paying the full amount it would be considered an new loan.To be honest it was a horrible experience and I'm still not over it,dramatic I know!!
Fleetwoodfan
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When I said no I meant no there is nothing to stop them going that high or higher!My worst nightmare.Why not?
While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements).
Mortgage Interest Rates
Mortgage Interest Rates Dáil Éireann Debate, Tuesday - 22 February 2022www.oireachtas.ie
Ah, sorry, I misread things. My mistake...
Brendan Burgess
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I have moved the discussion of the validity of a challenge to a new thread:
Could a borrower challenge mortgage rates in a variable rate contract as unfairly high?
No!!! Why not? While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements). https://www.oireachtas.ie/en/debates/question/2022-02-22/58/ The price lenders charge for their loans is a commercial...
www.askaboutmoney.com
Article about this in the Indo now:
www.independent.ie
‘Mortgage prisoners’ hit with interest rates of up to 6.5pc
Some mortgage holders whose loans are handled by Pepper, on behalf of vulture funds that bought them after the financial crash, have been told their interest rates are to rise as high as 6.5pc.
www.independent.ie
Kingoftench
Registered User
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Thanks for helping to get this hi lighted hopefully it might bring some positive outcome probably not but at same time you would imagine Pepper doesn’t like the negative feedback either
Kingoftench
Registered User
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We may take some positive out of it anyways it’s doomy and gloomy enough thinking about next month and the hike to 6.5% but my wife and I feel like we got a little win all be we know deep down they won’t care but at least they were called out and we appreciate that very much
Isn't that precisely the issue that's being discussed here?
I.e. yes they can and they probably will?
Brendan Burgess
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If you have a tracker they can’t change it
Ah, sorry, missed that important bit of info.
Brendan Burgess
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The Irish Times covers it today
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/6FOW3E5X7DFX3FI7DXK4IF7E5Q.jpg)
www.irishtimes.com
Pepper hikes some Irish mortgage rates to 6.5%
Firm is latest to increase interest rates
Some people can switch from Pepper:
Key Post - I managed to switch from Pepper before they increased my rate to 6.5%!
Current lender: Pepper Outstanding mortgage balance: €190000 Approximate value of your property: €400000 The date you started your fixed-rate… not fixed How many years you fixed for: N/A Your current mortgage interest rate: 4.69% Your current monthly repayment: €1500 Your property's BER: B3...
www.askaboutmoney.com
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Brendan Burgess
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I wrote to the Central Bank today:
I was appalled at the time when the Central Bank forced ptsb to sell perfectly good split mortgages to Pepper.
The Central Bank just completely ignored the interest of the borrowers involved.
Those customers are now paying 6.5% when they could have fixed with ptsb at 3%.
Many can't switch because they have or had split mortgages.
Many of them are now going to be catapulted into arrears directly as a result of the Central Bank's action.
Even Governor Honohan was aware of this problem back in 2015
However, I would make an exception. The committee will presumably be considering legislation in the near future about the mortgages that are sold to non-banks, ones that are simply harvesting those mortgages without getting involved in new business. It may be that there should be some limitation on the degree to which they could deviate from market practice. What locks the standard variable rate contract into reality is the fact that it should be the rate that is charged by the lender on new and old business, more or less keeping lenders in line with market conditions. However, if an entity is not making new business, it might not have this natural restraint.
The Central Bank really needs to take action immediately on this. You caused the problem unnecessarily. Now you should fix it.
I was appalled at the time when the Central Bank forced ptsb to sell perfectly good split mortgages to Pepper.
The Central Bank just completely ignored the interest of the borrowers involved.
Those customers are now paying 6.5% when they could have fixed with ptsb at 3%.
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
Many can't switch because they have or had split mortgages.
Many of them are now going to be catapulted into arrears directly as a result of the Central Bank's action.
Even Governor Honohan was aware of this problem back in 2015
However, I would make an exception. The committee will presumably be considering legislation in the near future about the mortgages that are sold to non-banks, ones that are simply harvesting those mortgages without getting involved in new business. It may be that there should be some limitation on the degree to which they could deviate from market practice. What locks the standard variable rate contract into reality is the fact that it should be the rate that is charged by the lender on new and old business, more or less keeping lenders in line with market conditions. However, if an entity is not making new business, it might not have this natural restraint.
The Central Bank really needs to take action immediately on this. You caused the problem unnecessarily. Now you should fix it.
Kingoftench
Registered User
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Thanks for all your efforts Brendan my wife and I really appreciate it hopefully we are keeping our fingers crossed that something will change to aid us going forward