Permanent TSB BTL mtge transferring to Pepper

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Mcivor

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I received a letter from Permanent TSB today saying that my BTL mortgage is being transferred to Pepper Finance. Strange as this mortgage has always been fully paid on time, no missed payments, no restructuring, never in arrears, etc. Only 5 years remaining on this mortgage with an outstanding balance of c. €40K on property worth c. €300K. I've been on an interest rate of 5.6% with Permanent TSB for years which is their BTL rate for existing Customers. I'm expecting that Pepper may increase this rate further as I see in the press that they recently increased their rates by 1.25%. I feel that I have been treated shabbily by Permanent TSB and wouldn't recommend them as a bank to do business with - high interest rate for years, existing Customers not switched to same rates as new Customers, and now mtge being transferred to 3rd party with no explanation...
Luckily, I have the funds to clear the mortgage which I may just go ahead and do.

Wondering what others think and has anyone else received a similar letter
 
Received the same letter today. Not overly concerned about it.
If you have the money to clear I would clear. Especially with the interest rate that high.

You'll not get a better risk free return on your money.
 
Thanks for feedback Laughahalla. You're probably right in your advice to just clear the loan. I'll probably do a few overpayments over the next while. I'm also interested in why Permanent TSB are selling my mortgage on to Pepper. Does anyone know as I haven't seen anything in the news about this. Are they exiting BTL and/or commercial loans business completely to concentrate solely on PPR mortgages.
I'm not overly concerned for myself as the outstanding amount is relatively small but I would be very concerned if I had a larger amount outstanding and at risk due to potential for significant rate increase from Pepper e.g. 5.6% + 1.25%. Of course there's nothing to say that Permanent TSB won't apply significant rate increases particularly to existing Customers,
What are people's experience with Pepper. Are they easy to deal with, do they have an online system to view outstanding balances, is it easy to make overpayments, etc
 
Mcivor said:
Thanks for feedback Laughahalla. You're probably right in your advice to just clear the loan. I'll probably do a few overpayments over the next while. I'm also interested in why Permanent TSB are selling my mortgage on to Pepper. Does anyone know as I haven't seen anything in the news about this. Are they exiting BTL and/or commercial loans business completely to concentrate solely on PPR mortgages.
I'm not overly concerned for myself as the outstanding amount is relatively small but I would be very concerned if I had a larger amount outstanding and at risk due to potential for significant rate increase from Pepper e.g. 5.6% + 1.25%. Of course there's nothing to say that Permanent TSB won't apply significant rate increases particularly to existing Customers,
What are people's experience with Pepper. Are they easy to deal with, do they have an online system to view outstanding balances, is it easy to make overpayments, etc
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Actually, you make a good point. PTSB have a decent enough online view of your mortgage. Does pepper have this facility. PTSB also allow you to make over payments that are credited to your account to be used as a payment holiday in the future if needed/wanted. Does pepper have this facility?
 
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Received a similar letter to the OP, had a chat with PTSB this morning as we have other mortgages with them but it’s the BTL that’s moving. Similar to the OP, it’s a performing loan but not able to keep it.
PTSB confirmed that Pepper has to honour the original terms and conditions of the loan.
Not ideal and totally unexpected
 
It's a securitisation.

But usually with securitisations, the original company continues to administer it.

It must somehow free up capital to allow them to buy more loans from Ulster Bank.

Most are on trackers so it won't matter much.

Those on non-trackers will be vulnerable and should look at switching.

Brendan
 
I got the letter too. I am not sure if my BTL mortgage would be classified as performing or not - originally interest only for 5 years, PTSB missed the 5 year anniversary and eventually last year I agreed to pay part capital until the original term ends in 2032. That is subject to review every few years so I feel a bit vulnerable now it is moving to Pepper but I guess in reality even with PTSB I would be in the same boat. Has anybody heard how mortgages which moved to Pepper tend to play out?
 
Hi Brendan
I have 2 BTL mortgages with PTSB and got notified these were transferring to Pepper. My mortgages are paid up in full direct debit every month, never missed and never changed. I rang PTSB to see why was mine been transferred but got no proper explanation. I said i did not want my mortgage moved as both were performing and LTV was extremely small. 2 questions .
1. What are my rights here if any
2. I'm paying a variable 4.5% currently what are the implications of the move to pepper - instant rate hike ?
 
1. You have no rights. ptsb can sell your mortgage to anyone they want. You have a right to switch to another lender.
2. Pepper can hike your rates and there is nothing you can do about it other than lobby politicians, journalists and the Central Bank
 
Did anybody else have their PTSB mortgage a/c removed from the online banking today?

I'm guessing it has something to do with the move to Pepper!
 
A relative of mine has just had his interest rate increased by 1.25% on his old PTSB mortgage increased by the new owner Pepper.

Can Pepper do this, when PTSB have not increased the rates? Dont Pepper have to honour the mortgage the way PTSB does?
 
I got the same letter. Joint mortgage. The other jointee was in the process of buying me out. Joint to joint. His wife was going in the deeds. Deposit paid. All agreed with the bank. I had signed the contract with my soclitors. There funds paid to solicitor account. Apparently the deed was gone to be stamped. The other party rang up today and PTSB won’t deal with matter as mortgage transferred. This has being in process since June. They lost the application forms. Then they couldn’t find the deeds for ages and now the mortgage has transferred to a 3rd party. I presume pepper will have to honour PTSB agreement to transfer joint to joint or are we back to square one. There has to be some sort of recourse if we have to start again.
 
Yes I have 2 BTLs transferred to Pepper. Never missed one payment on either. One has about 30k outstanding. Would they take a full and final of payment of about 20k to clear the morgagee? I have a feeling that you will see more and more morgages not been paid on time as rates and inflation continues.
 
Coolaboy said:
One has about 30k outstanding. Would they take a full and final of payment of about 20k to clear the morgagee?
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No.

Why would they?

Some commentators have argued that vulture funds just want a quick buck. They buy your loan cheap and get what they can from it.

If you were in deep negative equity and arrears , they might do a deal.

But assuming you can meet the repayments on €30k and the property is worth more than that.

You can ask them, but prepare yourself to be laughed at down the phone.

Brendan
 
I waited a couple of months to see how pepper would treat the mortgages transferred, so it was basically a letter received every couple of weeks with notification of a 1% hike and the last norifification was an additional 2% hike. I'm fairly confident they're increasing rates faster than Christine (time wise). I decided a couple of weeks ago to clear one of them and then last week I got a BOI personnel loan to clear the other. The BOI personnel loan is at 6% versus the pepper current rate of 8.75% - so its pure greed and madness from this out fit. I consider myself lucky enough that I had options but have to feel for those who dont - I suppose it must be forcing people to sell with the glut of landlords getting out
 
So people with fully performing buy to let loans were sold by ptsb to Pepper.

And Pepper has increased the rates to 8.75%

If these are fully performing loans, these customers should switch lenders.

I presume that the mainstream lenders welcome switchers?

Brendan
 
i was lucky enough that I had only a couple of yrs left on the mortgages, with some savings and a personnel loan I could get away from Pepper. Its crazy to think in this day and age that they can just put up rates every other week just for pure greed purposes. PTSB were no angels here either I requested several times from them why my loans were selected and basically got a school boy response when I said my loans did not fit into any of the transfer categories they had listed on there webiste related to this transfer. When i eventually gave in I asked that mine be left to last on the list to transfer just to give me a little time to organize and clear. They agreed to do this (over the phone) but alas that did not happen - I complained and got a one liner letter not relevant to the complaint. Sometime later before I went to BOI I asked PTSB would they refinance one of them just to get away from Pepper just to see what they'd say. So what I got was we cannot take back one we sold but they would accept an new application from me for a new property !! what in the name of God is the logic here...
 
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