How to deal with Pepper?

irishmolly

Registered User
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Facts

· Purchased a resi investment property top of the market
· Financed by a foreign owned bank
· Restructured loan with same bank in 2014 for with less onerous "alternative arrangement" for 5 years.
· Always respected the terms of this arrangement.
· In the meantime same bank sold the loan to Pepper.
· That alternative arrangement is reaching its term and Pepper wants to revert to the original repayment schedule which is 2x the existing arrangement.
· I would guesstimate a LTV of 70% and meaningful equity value for me.
· However property is in a rent controlled area and gross rents (before real world costs) are well below Pepper's requested monthly repayment.
· I have a good job, substantial equity in my Primary Residence and material unencumbered financial assets (of long term nature). I do however have substantial other debt servicing needs (on principal Residence and other BTL assets outside of Ireland) with other lenders all of which have been fully serviced and never restructured.
· Pepper appears to be open to discussions to consider another “alternative arrangement” with a higher monthly repayment schedule than the last 5 years yet below the full normal schedule and have sent me their forms requesting extensive details on my asset, liabilities, income & expenditure.

Questions
What is a reasonable counterproposal? A repayment schedule equivalent to ca. 65-80%<??> of Gross rents from the Pepper encumbered property perhaps?
On my other Buy to let assets outside of Ireland, equity is meaningful but servicing costs too. How will they assess such assets? I.e. does it weaken my negotiating position as they boost my net worth or does it strengthen my negotiating position as my debt service ratios are quite high.
Any general tips on negotiating tactics with Pepper specifically? How does Pepper approach these cases?

Many thanks in advance to all
 
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