Warehouse loan are they repayable?

[mpg67]

Can anyone let me know if part of a mortgage with PTSB, which has been warehoused until the end of the mortgage, will have to be repaid in full? the documentation suggests that it will have to be repaid but I'm wondering how they expect it to be paid?
I thought that if the non warehoused part was repaid in full, then that would be the end of it?

 

[Joe_90]

My understanding is that you pay capital and interest on the non warehoused part.

The warehoused part sits there not accruing interest so that in x no of years your / the countries circumstances are better. The value of your property has stabilised and you may be in a position to sell and deal with the warehoused part and move on.

 

[Brendan Burgess]

Hi mpg

Did you get advice on the documentation?

ptsb reviews the warehouse after 5 years, I think. If your income has improved, some will be moved into the active part.

At the end of mortgage term, you still owe the warehouse, if there is any left in it. They will do a deal with you at that stage. Probably put that on interest and capital as you will no longer be making your main repayments. If you can't, then you sell the house and pay off the balance.

You should read this and then read your actual documentation

http://www.askaboutmoney.com/showthread.php?t=180727

Brendan