interest only mortgage of €400k maturing in 3 years - no funds to clear it

Billyjo

New Member
Messages
4
Tracker interest only mortgage and full payment of €400,000 due in 3 years. Having panic attacks over it. Will Pepper agree to extend or son take over repayments? Security is on family home and there are two other properties owned. Can they force sale of family home. Son is willing to make agreement to take over payments when time comes. Couple are mid 60s and wont have the 400k only about 50k. Does Pepper do deals with borrowers? Are they a vulture fund? It would be great to hear positive news......many are in terrible stressful situations because of worry like this.
 

Brendan Burgess

Founder
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42,167
You need to provide the following information to get meaningful replies

 

Brian McD

New Member
Messages
4
Don’t think Pepper will allow a refinance for people over 65 or allow son to take over the loan - which is effectively a new loan unless he owns the house at that stage and has the repayment capacity ( as judged by Pepper). They will want the full amount back at the loan maturity date. Possible options are: (1) refinance with a different bank under sons name - needs asset to do so or take ownership of family home or (2) Sell one or both of the other properties to repay €400k / €350k. Do those other properties generate any income? Would that income be sufficient to repay a new loan to refinance this loan?
 

Billyjo

New Member
Messages
4
thanks ...one property rented out only month ago but would never amount to 400k in three years although you say to refinance under sons name. Who can assist with that? Can they force sale of family home. Is it necessary to prepare now for this event in 3 years i.e. or wait until 2024 expiry date. Should solicitor or finance specialist be brought on board to help
 

Leo

Moderator
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11,866
Very difficult to repossess a family home in Ireland.

Please fill out the details in Brendan's link.
 

Mapara

Registered User
Messages
29
Security is on family home and there are two other properties owned.
Is there any debt owed on these properties?

To enable people to give you good advice they need to know more information so Brendan's link needs to be completed.
 

MrEarl

Frequent Poster
Messages
1,974
While the information requested above needs to be provided, I would also like to know:

What was the Borrowers' original plan for repaying this bullet loan, when they borrowed the money?

Why has that plan now charged ?
 

Billyjo

New Member
Messages
4
While the information requested above needs to be provided, I would also like to know:

What was the Borrowers' original plan for repaying this bullet loan, when they borrowed the money?

Why has that plan now charged ?
Borrowers original plan for repayment was he was in business with other guy (construction) at that time and was due payment but never received it for various reasons then recession hit so no hope of paying it back within shorter time frame.
 

ArthurMcB

Registered User
Messages
26
Borrowers original plan for repayment was he was in business with other guy (construction) at that time and was due payment but never received it for various reasons then recession hit so no hope of paying it back within shorter time frame.
Did the bank grant mortgage on the back of this type of security ie guarantee of some future payment?
 

Billyjo

New Member
Messages
4
No it was agreed that mortgage was for number of years then timeframe was extended some years back.
 

_OkGo_

Registered User
Messages
87
@Billyjo you really need to respond with all the info that Brendan has pointed out here

You need to provide the following information to get meaningful replies

If you need genuine advice then you are not going to get it without providing all the details. From the limited info provided so far it looks like you have some reasonable options which are
  1. Sell all properties other than PPR if they meet the outstanding balance or
  2. Move into the cheapest property and sell the PPR
So many people have an unnatural attachment to their PPR (it's where I grew up, it's where the kids were raised, I want to leave it for my family when I am gone...etc). Do you really want years of financial stress in retirement if the options are there now to solve it??
 
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