Split mortgage- do we need to get advice?

S

suanamaria

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Hi there,

...We have been offered a split mortgage from kbc....23 years left on our mortgage(350,000, tracker rate..no interest on warehoused portion)..we are self employed and do expect that after a few years we ll get back on track..It seems like a great/no other option(!)situation to us especially as reviews will happen every 3 years...and we expect our circumstances to improve? The last few years have been a huge struggle..thus our current standing of being offererd the split mortgage.....but just wondering should we get advise you got before signing the dotted line?? We are completely swamped running our business, kids etc and we can see from the offer that it is a good temporary help for us and in fairness the only realistic option ...so is there any point in getting accountant/legal advise etc as offer looks clear and straight forward to us anyway and we are from what it looks like at mo going to go with this option??? Or are we missing something major? Thank you..
 
i was in a very similar situation to you in 2013. large arrears on the mortgage. offered split with ptsb
was skeptical too but decided to take it as no ther viable option. delighted i did. it stopped my arrears getting worse, gave me time
to get back on my feet financially with affordable payments. i reversed the split march of this year and returned to full payments.
 
How much are they offering to warehouse? 30%/40%? Even 50%? You might find that they do very little in the 3 year review. They will possibly just send you a standard letter saying you should let them know if your circumstances have changed. (Why would you suggest paying more if you are getting a large portion interest free?) Being on a tracker and a split mortgage is like winning the lottery.
 
Mauritius said:
You might find that they do very little in the 3 year review. They will possibly just send you a standard letter saying you should let them know if your circumstances have changed.
Click to expand...

I'd say that it is more likely that KBC would require you to pay down some of the warehoused portion if circumstances improve.

The OP would be well advised to get professional advice about split mortgages, particulalry in the light of this High Court ruling in May.
 
demoivre said:
I'd say that it is more likely that KBC would require you to pay down some of the warehoused portion if circumstances improve.

The OP would be well advised to get professional advice about split mortgages, particulalry in the light of this High Court ruling in May.
Click to expand...
Being on a tracker and, presumably, in arrears, they should take the split mortgage offer. The arrears will be consolidated into the loan and very low interest. Regarding the "if circumstances improve" part of your comment, that's my point. How do KBC know your circumstances improve? Believe me, after three years, you will get a letter asking you to get in touch "only if your circumstances have changed. If not, no need to respond to this letter." Do you know how many split mortgages they have on their books and the man power it would take to do financial reassessments on them all?
Getting professional advice is good though: Anthony Joyce?
 
Hi everyone, thanks for replies. The offer is 50/50. I suppose what I mean by kbc reviewing every three years (even if its just a standard letter sent out to us) is that we have the option there to revert back to full payment when our financial circumstances improve(as #2 above did).This would be our ultimate goal.
 
To get a proper answer, you need to provide all the relevant information:

Information required for mortgage arrears and negative equity questions

A split mortgage is great. It makes a cheap tracker even cheaper. There is no downside to it in itself.

But if you are insolvent, you could apply for a write down under a Personal Insolvency Arrangement and the court could impose it if KBC vetoes it.

That could be better than a split mortgage.

Brendan
 
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