Can I switch a split loan from Pepper?

U

USER1981

Registered User
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Hi I'm with Pepper. Was sold from PTSB in Nov 2018.
Currently have 14 years left and on split mortgage... current balance is approx 144k and there will be balance left of 45k at end of loan. Is it possible for us to switch from pepper?
Have never missed a payment on restructure since 2015 and even with Pepper.
 
Hi User

Give the exact figures

1) amount of active loan
2) Interest rate on active loan
3) Amount of warehouse.

Brendan
 
Looking at paperwork it's says with current repayments I will have a balance at end of 45k so I don't understand if this is warehoused or not.
 
Hi User

1) To answer your question. As you have a split mortgage, it is very unlikely any other lender will lend to you. Bank of Ireland is the possible exception. You should speak to a mortgage broker as they might be able to present your case better.

2) Your figures don't add up
The repayments on €144k with 14 years to go at 4.25% would be €1,100 a month, not €899.

The repayments on €99k , if that is the active part, would be €780 a month.

3) From your description I suspect, but I am only guessing, is that you have an active mortgage of
€99k
and a warehouse of €45k.

4) If that is correct and if your figure of 4.25% is correct, then you are paying
€4,400 a year interest, which is 4.25% of €99k

But €4,400 is only 3% of €144k

So there wouldn't be much point in switching anyway.

5) Bring all your documentation into a mortgage broker and he can see what you are actually paying and tell you if you can switch.

6) What age will you be when the loan matures? You will still owe €45k, but if you are still working you would pay it off over about 5 years at €830 a month.

Brendan
 
I'll be 55 when loan matures Brendan.

I'm currently repaying 899 per month at 4.5% sorry.
Current balance approx 142k with a balance of 45k at end.

If increase comes how much more a month would I be paying per month please

Thanks for reply
 
Brendan Burgess said:
The repayments on €144k with 14 years to go at 4.25% would be €1,100 a month, not €899.
Click to expand...

USER1981 said:
I'm currently repaying 899 per month at 4.5% sorry.
Click to expand...

Your figures just don't add up. Something is wrong.
Presumably you have the repayment correct?
So one of the following must be incorrect:
The balance
The remaining term
The interest rate.

So it's not possible to answer your question with any confidence.

€144,000 @ 4.5% over 21 years would be about €884 per month

If the rate increases to 6.5%, your repayment would rise to €1,050 per month.

Brendan
 
Brendan Burgess said:
Your figures just don't add up. Something is wrong.
Presumably you have the repayment correct?
So one of the following must be incorrect:
The balance
The remaining term
The interest rate.

So it's not possible to answer your question with any confidence.

€144,000 @ 4.5% over 21 years would be about €884 per month

If the rate increases to 6.5%, your repayment would rise to €1,050 per month.

Brendan
Click to expand...
Can I send u DM
 
I dont think that's a split mortgage where there is part at 0%. Just going by the numbers it looks like have been given something that allows monthly underpayments and leave a balance of 45,000 at the end. You are paying interest on 145,000.
 
onequestiononly said:
I dont think that's a split mortgage where there is part at 0%. Just going by the numbers it looks like have been given something that allows monthly underpayments and leave a balance of 45,000 at the end. You are paying interest on 145,000.
Click to expand...
Do u think I'd get to switch.
So if rates go up what repayments be then?
 
I am not an expert on that... I just ran your figures in a calc and it looked like based on what you said you are being charged interest on the full balance.

Based on what Brendan did above you would have affordability for 145,000 over a longer term and paying around 900. Not sure if you can switch, you would need to approach banks or brokers but posters more knowledgeable than me might be able to help too.

In terms of rates going up, I think you would need to look at the agreement or t&cs you signed. It could increase what you have to pay each month (every .25% increase would be approx €30) or what balance is owed at the end of the mortgage.
 
onequestiononly said:
I am not an expert on that... I just ran your figures in a calc and it looked like based on what you said you are being charged interest on the full balance.

Based on what Brendan did above you would have affordability for 145,000 over a longer term and paying around 900. Not sure if you can switch, you would need to approach banks or brokers but posters more knowledgeable than me might be able to help too.

In terms of rates going up, I think you would need to look at the agreement or t&cs you signed. It could increase what you have to pay each month (every .25% increase would be approx €30) or what balance is owed at the end of the mortgage.
Click to expand...
Thanks
 
onequestiononly said:
I dont think that's a split mortgage where there is part at 0%. Just going by the numbers it looks like have been given something that allows monthly underpayments and leave a balance of 45,000 at the end. You are paying interest on 145,000.
Click to expand...

I hadn't thought of that, and it could be something like that. Though ptsb were very generous with split mortgages.

I can't get the numbers to work out on the data given. If it's not a split mortgage, the balance would be a lot more than €145k after 12 years.

User 1981 - you need to talk to a broker who might understand what you have and explain it to you.
 
Brendan Burgess said:
I hadn't thought of that, and it could be something like that. Though ptsb were very generous with split mortgages.

I can't get the numbers to work out on the data given. If it's not a split mortgage, the balance would be a lot more than €145k after 12 years.

User 1981 - you need to talk to a broker who might understand what you have and explain it to you.
Click to expand...

Current balance 142k approx
Repayments 899 pm at 4.5% variable until Dec 2036
Balance at end 45k.
I'll be 55 when this happens.

I've that in writing.

I'll contact broker to see if I can switch to lower rate with someone else.
 
€142k @4.5% over 20 years gives you a repayment of €899

But the balance after 12 years is €72k

1656701768241.png
 
crude maths....

168 mths x €889 is approx. €151,000

€142,000 over 168mths payments should be €1,140. total cost of credit is approx €191000

250 (difference) x 168 is c.€42,000 (not accounting for interest on the 250 not paid each month)

I cannot get it to work out exactly but it looks like a part capital and interest arrangement that PTSB had in their MARP booklet
 
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