Key Post PTSB has just informed me that they have sold my mortgage to Glenbeigh/Pepper

Discussion in 'Mortgage arrears & negative equity case studies' started by Duff123, 5 Dec 2018.

  1. Duff123

    Duff123 Registered User

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    Just received a letter from PTSB that they are selling my residential split mortgage to Glenbeigh Securities 2018 and states my loan is included in securitisation transaction. I am one of the 4000 mortgages they did not originally sell. I have never heard of them. What can I expect.? Pepper will then service loan. What does this mean for us . We have 80k warehoused. House does have equity now. (Family home) and 22 years left. Will the interest go sky high. Any information would be appreciated. So quietly done by PTSB!!
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: 6 Dec 2018
    Update to reply to all the questions in this thread.

    • There is no need for panic
    • Your house is not going to be repossessed unless you stop paying it, of course.
    • If you have a cheap tracker mortgage, you are not going to lose it
    If your financial position has improved, Pepper may seek to move some of the warehouse into capital and interest.

    Your split mortgage has a review clause.

    If your finances improve, ptsb can move some of the money from the warehouse into the main mortgage.

    It is likely that Pepper will be more efficient in conducting such a review.


    If your finances have improved, you should consider asking them to put the warehouse into the active mortgage and start restoring your ICB record.

    If you might want to trade up in the medium term...
    You wouldn't have been able to trade up while you had a split mortgage or reduced capital and interest mortgage.

    So if your finances have improved and you might want to trade up, then you should look at moving to paying your mortgage payments in full as soon as possible.


    Pepper might increase the mortgage rate on non-tracker mortgages

    In theory, Pepper can increase the interest rate as there is no control over mortgage rates in this country (or, indeed, in most countries.)

    The main loser in this transaction is ptsb and the taxpayer which owns ptsb
    They were forced to sell these mortgages by the Central Bank but it's unlikely that ptsb wanted to sell them.

    Brendan
     
    Last edited: 6 Dec 2018
  3. Brendan Burgess

    Brendan Burgess Founder

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    Last edited: 6 Dec 2018
    Pepper does not want to repossess any of these mortgages

    These mortgages will be bought as a long-term investment by Glenbeigh.

    They have bought them because they are getting regular payments on them and because they got them for less than the loan amount.

    They are not like a vulture fund which might want to repossess your house and get a quick return.

    If you keep up the repayments per the restructuring agreement, they will have no basis for repossessing or trying to repossess.

    Pepper may review the restructuring agreement when it's due for a review. If you can't agree a renewal of this and you go into arrears, even still they have not the slightest chance of succeeding in court if you continue paying what you are paying.

    Brendan
     
    Last edited: 6 Dec 2018
  4. Duff123

    Duff123 Registered User

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    Thanks Brendan. We have already moved money out of warehouse and at moment can not transfer more. I am more concerned they will want to repossess and put the pressure on. We were never in arrears. Problems arised when interest rates went very high. Am I stuck at Peppers mercy for the next 20 years or would another bank even looks at us or what steps I could make to ensure my home is safe. Thanks.
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    Hi Duff

    There is no way that they will try to repossess your property.

    The is a fund which is there for the long term. They want to keep customers.

    They may reassess your finances and try to move more from the warehouse.

    No other bank will look at you while you have a split mortgage which is why I suggest to people who don't need them anymore, to return to full interest and capital.

    As of now, there is no limit on what Pepper can charge. To date, none of the vulture funds have exploited this and jacked up rates. But it is a risk. Michael McGrath has a bill to control mortgage rates, but it is opposed by the Central Bank, the Department of Finance and the Minister for Finance.

    Brendan
     
  6. Anniek

    Anniek New Member

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    Last edited: 6 Dec 2018
    Hi Brendan,

    I too have been shafted by PTSB and mortgage has being sold to Glenbeigh I received the letter today. I don't know what to make of it my initial reaction was panic.

    I have a split mortgage the last 3 years which has been paid with no defaults on the capital that's 198k now and the warehouse is 85k. I think the max I'd sell my property for is 250k maybe 270k if prices continue to rise.

    We have a bad ICB record as we had 50k in loans which we defaulted on in the recession, these are now down to roughly 10k.

    Our finances have picked up and will continue to increase. I would love to move eventually but I'm now panicking that this may not be possible due to the sale of our split. We have 23 years left on the mortgage and in our late 30's have we any hope of moving?

    Also should I wait until it's transferred to Glenbeigh to request returning to full payments or do this while PTSB still have it? Apparently it's not being transferred to Glenbeigh for another 6 months.
    Thanks.
     
    Last edited: 6 Dec 2018
  7. USER1981

    USER1981 New Member

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    Hi I also received a letter yesterday saying my mortgage was sold to glenbeigh/pepper. I'm in a panic to be honest.
    I restructured to a part capital and interest restructure 2 1/2 years ago. I had 5800 arrears at the time. I will have a lump sum due at mortgage end. This agreement was up for review in july 19
    Will this now be affected by this takeover by pepper. Will they look to repossess or what will happen. I don't fully understand my situation. Should I contact ptsb as I prob could go back to paying near full amount of mortgage.
    Do we have any protection with pepper as are they looking to repossess all these houses or will they work with people. Do they keep your mortgage for remainder of term???
     
  8. Duff123

    Duff123 Registered User

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    I would not panic.. All terms and conditions follow. i.e Term etc. Continue to pay as agreed. You will be up for review when it comes around. They may push to return to full payments. As long as you pay your monthly mortgage or agreed repayment no court would grant a repossession. Hopefully in a few years time I can get refinance elsewhere but until then I will engage with Pepper as I did with PTSB. Remember these split mortgages are profitable to them and as Brendan said above they are in it for long term not looking for repossession. Grant it getting these letters are not nice and we will receive more in months to come. Engage always and pay what is agreed keep records of everything!
     
  9. USER1981

    USER1981 New Member

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    Thanks. If I agreed with PTSB before transfer to go to full payments would that transfer to pepper. And would they accept
     
  10. Duff123

    Duff123 Registered User

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    I would imagine they would. Ring PTSB. Your mortgage will be still sold to Pepper as the deal is done. Pepper will review your finances anyway and If you can afford it will move you back to full payments anyway! So just make sure you can afford it now and won't find yourselves in difficulty again especially with Pepper.
     
  11. USER1981

    USER1981 New Member

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    Thanks so your saying not to panic and engage as I have been doing and shouldn't have any long-term issues.
     
  12. Duff123

    Duff123 Registered User

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    Exactly. That will be my approach anyway.
     
  13. USER1981

    USER1981 New Member

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    Brendan what do you think. Just like a little reassurance
     
  14. Brendan Burgess

    Brendan Burgess Founder

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    Hi Annie

    You would not be able to trade up anyway until about 5 years after you have cleared your ICB record and the split generally.

    The sale of the mortgage hasn't affected it much. If you had cleaned up your ICB record and moved to full capital and interest, ptsb might have been willing to give you a trade-up mortgage a bit before the 5 years.

    Brendan
     
  15. Brendan Burgess

    Brendan Burgess Founder

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    I have updated the first few posts in this thread and this is my reply to you.

    Pepper does not want to repossess any of these mortgages

    These mortgages will be bought as a long-term investment by Glenbeigh.

    They have bought them because they are getting regular payments on them and because they got them for less than the loan amount.

    They are not like a vulture fund which might want to repossess your house and get a quick return.

    If you keep up the repayments per the restructuring agreement, they will have no basis for repossessing or trying to repossess.

    Pepper may review the restructuring agreement when it's due for a review. If you can't agree a renewal of this and you go into arrears, even still they have not the slightest chance of succeeding in court if you continue paying what you are paying.

    Brendan
     
  16. Brendan Burgess

    Brendan Burgess Founder

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    Yes. Pepper would be delighted to have a full capital and interest mortgage.

    I don't think that the mortgage would be excluded from the sale to Pepper.

    Brendan
     
  17. USER1981

    USER1981 New Member

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    Thanks I'll contact ptsb and do a new sfs and see where we are..
     
  18. Duff123

    Duff123 Registered User

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    Thanks Brendan very informative post. Just as a matter of interest do you know what Peppers current SVR is?
     
  19. Brendan Burgess

    Brendan Burgess Founder

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    Hi Duff

    I presume that they will transfer the ptsb mortgages at the same rate that the borrower is on with ptsb. Pepper's own rate would not be relevant.

    Brendan