Your question should be - would the warehouse have been necessary had they charged the correct interest rate from the start?
In Rory's case, he would have a mortgage of €367k today with repayments of €1,300. He would not have needed or been granted a split mortgage as he could make his full repayments.
I am surprised that ptsb did not do this. This is how I would have done it. Instead, they have left him with the split and with a much reduced repayment, although he can afford to pay more.
This will also mean a restoration of ones Credit Rating
Yes, but he will have much higher repayments.
as well as a larger repayment direct to the customers.
Not in Rory's case anyway. In fact, I don't think it will result in a larger repayment in any case. This is what they do.
1) Calculate what the mortgage would be today had he been charged the right rate and had he not split the mortgage and had he made the full repayments which should have been made
2) In some cases, that will be more than the main mortgage amount, so the full overcharge will be deducted from the warehouse.
Brendan