Pepper Advantage - Requesting plan to handle warehoused balance at mortgage maturity

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delly.x

Registered User
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Hi folks, just wanted to get some input on this.

Currently I have a split mortgage with Pepper, €100k was warehoused about 15 years ago when I was made redundant. There is now €100k left on the active part, and I am paying off inline with plans, that will finish in about 15 years. While I'd like to pay more, the high interest rate restricts me on what I can do, so my long term plan was to use inheritance to pay off the warehoused amount in 15 years. Although a bit morbid, the inheritance in question relates to someone in their late 80s, so no exact timeline, but realistically will be in 5 to 10 years. I rang MABS and they said that although this is a good plan, putting down pension payment lump sum, may be a better one.

So, I want to see what opinions are on this, are they just looking for the plan, will they accept inheritance planning, or do I have to be more cautious here?

Many thanks.
 
Might be worth doing a Money Makeover so people can offer feedback in the context of a better understanding of your overall financial and personal circumstances?

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It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Agree that a Money Makeover would be the best approach.

I can't see how anyone could tell you over the phone that using a pension fund would be better than an inheritance.

When are you due to retire and have access to your pension fund?

You probably don't need to make any decisions until retirement or the bequest arises.

Brendan
 
Thanks for taking the time to answer folks, I will check the Money Makeover to update the details. I should have included my age, which is 50. I can draw down some pension at 60, but targeted retirement is 65. So it is in parallel with the mortgage ending.

In relation to the guys from MABS, he sounded very general on the topic, so probably would not too much weight on what he said. His basic thoughts were that the pension was guaranteed (global crash notwithstanding), but an inheritance was not, as circumstances could change.

The form from Pepper is one page, just tick the box and send back, so was hoping to get some real world experience from other Pepper customers.
 
delly.x said:
The form from Pepper is one page, just tick the box and send back,
Click to expand...
What exactly does the form say?
If it's just asking "do you have a plan to clear the mortgage? Yes/no" then presumably you can just tick yes and send it back while looking into the options that you're referring to above separately?
 
Yes, that is it exactly. Options are, sales of property at end of term, remortgage with another lender, savings, increased payments, investments, pension or other. Pension is an established option, so based on what I have already learned, I will tick this and then the other box relating to the inheritance.

In fairness, it's not an unreasonable ask, in that they do want to know what is planned long term. I would imagine there will be a lot of people in similar positions in years to come, so having a plan is wise. For now I will leave off the lotto win option!
 
I would just tick an appropriate box and send the form back if that's all that they're looking for. But it's still worth doing a Money Makeover to get feedback and to help with establishing your own plan for what you'll do to deal with the debt eventually.
 
The purpose of the form is to remind you that you have a balance to clear and to get you thinking about how you might clear it.

It is unlikely that clearing it from a pension lump sum from early retirement would be a good idea. Or put it another way, you should not retire early to clear a mortgage. You should continue working.

I would tick remortgage with another lender and just send the form back.

While you can't legally rely on an inheritance, most people have a fair idea of what they are going to get. They just don't know when they will get it.

If you tick inheritance, they might ask for more information.
 
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