Is there any way out from Pepper for us?

[clon2562]

Hi, and thanks for reading what is my first post. Im not at all financially savvy, which you will see from reading my story! Ill try to make it brief as possible...
Had a rental property along with our family home, both mortgaged with KBC. Husband sole earner. About 11 years ago he was unable to work for a number of months due to health issue, and we fell into arrears on rental property . Used up all our savings to keep paying mortgage on family home. Entered personal insolvency. Personally, im not sure that helped us really. Yes, the rental was repossessed, and our 20,000 cu loan was wiped, but our home mortgage term was restructured so that now my husband will be in his mid 70s before the term is finished. We were told by our pip that our home mortgage repayments would be about 800 pm from then on, which foolishly we thought would remain so. We didnt even realise the extension of the term until it had all been finalised ! I remember the paperwork advised us to get legal advice - but our heads were fried from health worry and financial stress. We could barely afford to live week to week and cudnt afford to pay for legal help. It was citizens advice who sent us to pip, so we had no reason to doubt that everything would be done in our interest. And perhaps it was, but it really didnt feel like we were one bit better situated after the insolvency.
Anyways that went through in 2015, but the next thing was that kbc left the market and our home mortgage was transferred to Pepper. Although we did go through the personal insolvency, this mortgage was never in arrears - dont really know why they extended the term by about 8 years but we stupidly accepted it. It was a terrible time of health anxiety and money worry. We certainly weren't thinking clearly enough to question things. Anyways. He we are now 10 years later..
Mortgage of about 120,000
Property value at least double
No idea of the BER rating but its definitely very bad, as house is terribly cold but no funds to insulate.
Husband now healthy, though l have had a diagnosis and am having treatment .
We have a mortgage protection policy term assurance which was matched to our original mortgage end date, so im guessing this will expire 8 or more years before our new mortgage term ends!
Its all a crazy mess, to which we are now paying nearly double on our repayments to what the pip told us we originally would be doing!
But, being in our sixties now, and instead of coming to the end of our mortgage we are looking at another 8 years or so left. Is there any light at the end of what seems a never ending long tunnel right now?
Thanks for any advice, or insight. Sorry its all a bit vague in financial detail but just stumbled onto this site and dont have documents with me to be more precise. Thanks.

 

[peemac]

Many are going and have gone through similar and a lot worse than you and have come out the other end.

Debt of 120k on 250k house may sound a lot, but its manageable.

I'd check any files you had with the PIP and see what the terms were. Its possible you missed something or possibly there's an error. But also talk to Pepper and see what can be done that will suit both them and you. It may require a PIP to rearrange things and that might be the best option as they get something arranged far quicker than you trying to deal direct.

Also look at whether you have done tax returns for the past 4 years and claimed tax rebates on all medical expenses and also the fairly nice mortgage interest tax rebate the government gave in the last 2 budgets. There could be a couple of thousand there depending on your expenses.


Check the mortgage rate you are paying. Does this conform to any previous agreement?

Check your future finances - Current earnings, future Pensions, possible inheritance.

Check that you have re-contracted your utility bills at the best possible discounts. If you have not changed plan or provider in 12 months, do it today and save about 20% overall (about 30% on the unit rates, but no savings on standing charges)

If you have mobile phone plans and paying more that €15 a month - change today to 48.ie (Three) or clear mobile (Vodafone) or GoMo (Eir) - all offering the same service as their parent offerings - but less than 1/2 the prices. Takes about an hour for the change to be in effect.



Definitely talk to a PIP or other financial advisor - the fee will be well worth it. Check the savings on outgoings, check for tax refunds and acknowledge that whilst it may take a little longer than expected to clear the mortgage, you will be mortgage free at some point.

 

[Raging Bull]

You can only do a PIA once in your lifetime. At the time of the arrangement it seems the property was likely in equity so can niot write off debt. As it was the original Creditor the ability of the PIP to do much with the rate is limited because significant rate reductions could be unfair and TBH its 2015 so rates were very low then anyway. The term was extended to reduce the payments.

Unfortunately it seems they were on a variable rate that has since spiked causing the difficulty.

If you want to maintain the life cover you need to extend the term.

You should try negoiate a lower rate with Pepper but you need them to voluntarily do it