Pepper reduces some variable rates

Pepper Advantage is to begin notifying over 9,000 residential mortgage customers of decreases in their variable mortgage rates over the coming days.



The decision to lower rates for certain customers follows rate reductions by the European Central Bank (ECB) and is based on the criteria set out in Pepper’s variable interest rate policy.





Rate decreases will range from 0.25% to 1%, and the majority of the customers receiving this initial reduction will receive decreases of between 0.35%-0.5%.



The current reductions apply to those Pepper Advantage customers who have seen the highest increases to date since the ECB incrementally started increasing rates in July 2022.



Pepper continues to review the situation for remaining customers and subject to further ECB rate reductions, expects to be in a position to notify more customers of reductions in their variable rates in due course.

A small bit of good news for all of us in mortgage limbo!

Has anyone received written notification of a rate reduction from Pepper yet ?

Synopsis...

Pepper Advantage, the mortgage services provider used by a number of investment funds for Irish loans acquired after the financial crash, is to notify 9,000 residential mortgage customers of further decreases in variable rates on their loans next month.

It said on Friday its decision to lower rates for certain customers is linked to rate reductions previously announced by the European Central Bank (ECB) and is based on the criteria set out in Pepper’s variable interest rate policy.

Rate decreases being announced will range from 0.35 per cent to 0.5 per cent. The majority of customers receiving the reduction will see decreases of 0.5 per cent.

The reductions apply to customers who have experienced the highest increases since the ECB implemented ten consecutive rate increases beginning in July 2022

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Hi,
I have an interest only loan with Pepper for a rental property. This loan is not in arrears and was originally with NIB. All the recent ECB hikes were imposed by Pepper and I am struggling with the mortgage.
Pepper only passed on a 0.3 % reduction from all the recent 5 ECB interest rate cuts.
I phoned them and they said they don't have to pass on the cuts and are not going too.
I tried to switch the mortgage but that didn't work out so still trapped. Just wondering what I should do now. All suggestions welcomed.

Manning said:

I tried to switch the mortgage but that didn't work out so still trapped. Just wondering what I should do now.

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Sell the property is the only solution that I can think of.

Manning said:

I have an interest only loan with Pepper for a rental property.

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If you can't reduce the cost of serving the debt can you increase the rent?

If it's an interest only mortgage and the current rent isn't enough now what's the plan for paying the balance when it falls due?

Unfortunately the property is in a RPZ and increases of 2% allowed each year. This is not enough to service the debt and balance is coming out of my wages.
I intend to sell the property when the term is up, the property is only now just reaching the cost I paid for it.
I don't understand how Pepper are allowed to not pass on all the ECB rate cuts.

Any reductions by the Vulture Funds are welcome but Mars now has 70% of the 100000 Mortgages on its books as Start left the country last year , no mention of them cutting yet .
On a separate note did anymore come of the High Court action against Pepper by the Cork couple ? Nothing of note in some weeks .

Finally a rate reduction passed on from Pepper down from 6.65 to 6.15 effective from July .