A friend has a mortgage originally taken out with Bank of Scotland Ireland. The term was ten years interest only, followed by fifteen years of capital and interest payments. Having run into some difficulty with the looming repayment increase at the end of the I-O period, he agreed with BOSI to pay interest only for the full 25 year mortgage term. Obviously the entire original capital amount would then fall due. BOSI agreed this and confirmed in writing.
Subsequently, in the last 24 months, BOSI sold the mortgage to Pepper. Pepper are demanding commencement of capital repayments, claiming that the letter from BOSI does not form part of the original mortgage contract. Indeed, they say that anything not signed by both lender and borrower is irrelevant.
Can Pepper do this? The borrower has no possibility of making the higher repayments which are nearly triple the I-O amount.
Subsequently, in the last 24 months, BOSI sold the mortgage to Pepper. Pepper are demanding commencement of capital repayments, claiming that the letter from BOSI does not form part of the original mortgage contract. Indeed, they say that anything not signed by both lender and borrower is irrelevant.
Can Pepper do this? The borrower has no possibility of making the higher repayments which are nearly triple the I-O amount.