Pepper / Danske Mortgage Buy-Out & Deals to be done?

Cruzer123

Registered User
Messages
34
I have a significant mortgage (900K+) on a MacMansion since 2006 now with Pepper at .5% over ECB Interest Only. It's on this arrangement for the full term and has 18 years left to run. Needless to say I've had some ups and downs with this but it's been largely positive and will be for some time to come.
Given that my mortgage payment is a paltry €350 or so pm Pepper must be getting totally hosed on this one.
I've been sort of hoping that they might offer me a deal to settle the mortgage. and extract myself from what is a significant debt on a house thats in negative equity, has anyone heard of deals being done in this regard?
 
I have a Mortage with Danske/pepper too and the official line from them is no deals being done. And I have not heard or read of any deals being done on the residential Mortages.

You can always make them an offer and see what they say.

What's kind of negative equity do you have as you should do some calculations to see what type of % annual increase you would need in house prices over the next 18 years in order to overcome the negative equity (assuming you are going to have to sell the House to pay back the 900k in one go?). Or I suppose you will remortgage?
 
Last edited:
Aren't you concerned about the flipside?

As far as I know, those NIB/Danske mortgages provide for recalculation of the rate based on your LTV.

Engagement with Pepper could lead to you losing your 0.5% tracker rate.

You have access to what is virtually free cash. If it was me, I would do nothing other than smile occassionally at the magic of the Danske LTV mortgage.
 
Having heard nothing at all from Pepper for many years other than a yearly statement of mortgage interest I received a communication in December from them requesting details of how I intended paying off the full capital amount off in 15 years.

They outlined a number of multiple choice options including, cash, inheritance, mortgage etc. I had to select an option and return the form.

It's good to see they're concerned for my future welfare, what this exercise has achieved is beyond me. I ticked cash and sent it back. Ironically having sailed close to the wind for many years my circumstances have changed and I can now pay it down early if required.

Maybe / hopefully Goldman Sachs are reconsidering how they could best use this €900K given the upside from the volatility in the markets. Having it tied up here for 15 years at .5% on IO is laughable.
 
Back
Top