I've posted here before about our situation. Below is the synopsis I posted for Brendan in 2022. We have been fixed at 3.7% for the past 5 years since moving from PTSB and this is ending shortly. Pepper has advised our new rate is 8.36%. Horrible. We have approached them for a reduction and they have give us 2 potential options.
Option 1: Leave warehouse amount alone for now and a reduced variable rate of 6.5% on the active mortgage with a term extension until I am 70 (and husband will be 78).
Option 2: Take over warehouse amount and pay 4.5% interest on the full amount with the same term extension as above. The active amount is around €143k now and the warehouse €82k.
These are variable rates, not fixed, so can go up (or down) at any stage. Any thoughts appreciated. I had hoped for far better options tbh.
There's around 6 years left on the CU loan for the house extension. We intend heavily overpaying on the mortgage after that.
Thanks in advance.
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Original split
1) Which lender PTSB, since sold to Pepper
2) Date of split 2013
3) Amount of split €175k active, €82k warehouse
4) Were you on a tracker or normal mortgage rate? Normal, currently 3.7%
5) What age will you be when your mortgage term ends? Myself 65, himself 72
Progress since then
6) Current balance e.g. €170k active/€100k warehouse Currently €152k active, €82k warehouse
7) Have you kept up the full repayments on the active part? Yes
8) Has your lender reviewed the split - if so have they moved any of the warehouse to the active Yes, Pepper reviewed 2021 and 2020. No change.
9) Have your finances improved e.g. Have you built up savings? Could you afford to pay more? Yes, yes.
10) Have you made any overpayments? Did the bank set them off against the active part or the warehoused part? No, no.
What are your plans?
11) Are you concerned about the warehoused balance when the mortgage term ends? Yes
12) If you are overpaying the active part, do you intend to pay down the warehouse early? n/a
13) Are you concerned about your credit record? Do you have any plans to borrow for a car or to get a top-up mortgage or to trade up? Recently borrowed from the credit union for house extension with no issue.
If you have exited the split mortgage or traded up?
Why did you exit the split?
Tell us about your experience generally e.g. was the existence of a split mortgage a barrier to trading up? No plans to trade up, like the location and neighbours etc. but needed to extend. Borrowed from the CU and overpaying this loan to clear as quickly as possible.
Rough plan was to clear CU loan, take back warehouse mortgage to pay full and switch to another provider for better rate. Getting the impression from reading here that another bank will be unlikely to take us on so perhaps leave the warehouse and save the balance instead? Or overpay active mortgage if Pepper agree? Grateful for any advice.
Option 1: Leave warehouse amount alone for now and a reduced variable rate of 6.5% on the active mortgage with a term extension until I am 70 (and husband will be 78).
Option 2: Take over warehouse amount and pay 4.5% interest on the full amount with the same term extension as above. The active amount is around €143k now and the warehouse €82k.
These are variable rates, not fixed, so can go up (or down) at any stage. Any thoughts appreciated. I had hoped for far better options tbh.
There's around 6 years left on the CU loan for the house extension. We intend heavily overpaying on the mortgage after that.
Thanks in advance.
____________________________________________________________________________________________________________________________________________________________________________
Original split
1) Which lender PTSB, since sold to Pepper
2) Date of split 2013
3) Amount of split €175k active, €82k warehouse
4) Were you on a tracker or normal mortgage rate? Normal, currently 3.7%
5) What age will you be when your mortgage term ends? Myself 65, himself 72
Progress since then
6) Current balance e.g. €170k active/€100k warehouse Currently €152k active, €82k warehouse
7) Have you kept up the full repayments on the active part? Yes
8) Has your lender reviewed the split - if so have they moved any of the warehouse to the active Yes, Pepper reviewed 2021 and 2020. No change.
9) Have your finances improved e.g. Have you built up savings? Could you afford to pay more? Yes, yes.
10) Have you made any overpayments? Did the bank set them off against the active part or the warehoused part? No, no.
What are your plans?
11) Are you concerned about the warehoused balance when the mortgage term ends? Yes
12) If you are overpaying the active part, do you intend to pay down the warehouse early? n/a
13) Are you concerned about your credit record? Do you have any plans to borrow for a car or to get a top-up mortgage or to trade up? Recently borrowed from the credit union for house extension with no issue.
If you have exited the split mortgage or traded up?
Why did you exit the split?
Tell us about your experience generally e.g. was the existence of a split mortgage a barrier to trading up? No plans to trade up, like the location and neighbours etc. but needed to extend. Borrowed from the CU and overpaying this loan to clear as quickly as possible.
Rough plan was to clear CU loan, take back warehouse mortgage to pay full and switch to another provider for better rate. Getting the impression from reading here that another bank will be unlikely to take us on so perhaps leave the warehouse and save the balance instead? Or overpay active mortgage if Pepper agree? Grateful for any advice.
