Stephenflongo
New Member
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- 7
Brendan - the OP says they struggle to pay the mortgage so why do you use slanted language like "you are well able to pay the morgage".I don't know why they told you that Pepper sometimes consider such offers. They did years ago and might do a settlement in a case of deep arrears and high negative equity. They would probably agree not to pursue the shortfall if you sold the house and gave them the proceeds.
But you are well able to pay your mortgage and you should do so.
Your best strategy now is to pay the €170k off the mortgage and then try to clear the balance over the next 10 years, so that you won't have to sell the house when the term is up.
Brendan
It’s best to have a basic understanding of how mortgages and personal finance work before diving in two-footed like you did.Brendan - the OP says they struggle to pay the mortgage so why do you use slanted language like "you are well able to pay the morgage".
To OP - get some serious independent/ non judgemental advice and proceed armed with that.
Because the OP has said that they have €170k in the bank.the OP says they struggle to pay the mortgage so why do you use slanted language like "you are well able to pay the morgage".
Diving in 2 footed - very apt given night thats in it! Like you above and BB on the OP.It’s best to have a basic understanding of how mortgages and personal finance work before diving in two-footed like you did.
- The OP was struggling to pay the mortgage
- However, the OP has inherited €170k
- It’s most likely an interest-only tracker
- Surely the OP could quite easily repay the mortgage over the remaining 10 years using a combination of ongoing income and the €170k? Or follow Brendan’s advice, which ordinarily is what I’d do to save the interest and avoid spending the €170k on other things, but in this case the OP’s money would be bailing out the ex-partner
- If not making a lump-sum repayment, the OP probably needs to find €50k over the next 10 years to clear the mortgage (i.e. €210k plus €10k interest minus €170k); that’s €5k a year or €416 a month; imagine what rent would cost?!
And what about the ex-partner’s obligations as highlighted above? And what about the ex-partner’s claim on an unencumbered property…walked away from a trainwreck and returns to claim 50% of the debt-free property?!
Brendan - the OP says they struggle to pay the mortgage so why do you use slanted language like "you are well able to pay the morgage"
Myself and my ex partner have a joint 30 year Interest Only mortgage of €210k with PEPPER / (previously BOS) there is ten years left on the loan before the full amount has to be paid. We separated four years ago, my ex partner moved out of the home and I live there and have paid the mortgage since, I have not missed any payments to date.
Firstly thanks everyone for your comments above.Have you reached an agreement with your ex on the house and mortgage?
I'm not sure of the interst rate but the next monthly interest only repayment is €260What interest rate are you paying?
What is your monthly repayment, if you don't know the interest rate.
I am guessing it's about €100 a month.
Brendan
Looks like an interest rate of 1.5% which is a bit odd.I'm not sure of the interst rate but the next monthly interest only repayment is €260
I'm not sure of the interst rate but the next monthly interest only repayment is €260
The way you write “PEPPER” in capitals all the time keeps making me think of Star Wars.Firstly thanks everyone for your comments above.
Hi Brendan, thanks for your advice. I was initially taken aback by your first comment where you say "But you are well able to pay your mortgage and you should do so" as I have been struggling to meet the monthly payments. But then you say " If he pays the lump sum off the mortgage, his current level of repayments will probably clear the mortgage within ten years or very close to it" I haven't looked at it this was to be honest. I have no idea what the readjusted monthly rate will be after the amount owed to PEPPER is reduced to €40k , I need to find this out ... perhaps MABS can help me with this as I'm an absolute disaster with finances
Regarding an agreement with my ex.. the equity on the house is approx €25k and we have agreed that I owe her €15k but the problem is she want's her name off the title and I can't see PEPPER doing that because of my current financial situation. My solicitor has prepared a legal agreement which my ex is happy to sign pending the outcome with PEPPER. The obvious solution is to sell the house but I do not want to do that for reasons that I won't go into here. A friend suggested that I could use the €170k as a bargaining tool with PEPPER so as the get her name off the title but I doubt they will entertain this idea. The reason I originally said I offered PEPPER €160k is I was keeping the other €10k to partly pay off my ex partner. I'm very conscious of the fact that if I can't get her name off the title now and the equity on the property increases (apart from the €170 I pay now) she might ask for more in the future. God it sound's so complicated, at this stage my head is completely melted so I'm open to any solution that will resolve it.
Thanks again
Brian
No, that's just the interest.. the mortgage protection is paid separately to another company. Should I query the interest rate if it seems too high, could they be possibly over charging me?Is that including mortgage protection insurance? It seems too high.
If that is just the interest, and you paid that off a €40k loan you would be mortgage-free in 15 years.
After 10 years, you would owe €15k and it's unlikely that Pepper would take any legal action over you to recover that as long as you continued paying.
Brendan
Its 1.5%.Should I query the interest rate if it seems too high,
I don't think you said you were on a tracker rate, but other posters assumed it?
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