Warehouse Mortgage Interest Free??

R

RayRoss

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Hi.

I am new to this and hope this has not been asked and answered already.

I too like so many others ended up with a split mortgage where there was an active loan and an interest free warehoused amount. My active amount was €165k and the warehoused amount is €62k. The issue I have is that the active amount is extortionately high and I know it is to claw back interest which is not been paid on the warehoused amount. Are others here in the same situation?

Thanks in advance :)
 
Hi RayRoss, I’m not on a split mortgage, but could be in the future… I’m curious as to what rate you are paying on the active part.
It’s bad form on the lenders part if they offer a more affordable solution only to Jack up the interest rate higher on the active mortgage.
 
Hi Redrunner. Thanks for your reply. It is currently at 7.28%. I used the words "extortionately high" in my op, and I can say that I used those words very purposely.
 
Scandalous, I’m on a fixed rate at the moment which I had before I was sold to pepper, I’m keeping an eye on what to expect when that runs out.
 
REDRUNNER said:
Scandalous, I’m on a fixed rate at the moment which I had before I was sold to pepper, I’m keeping an eye on what to expect when that runs out.
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Was originally with PTSB and my fixed rate of 3.7% is up this month , pepper are putting me on a 8.36% interest rate
 
louella85 said:
Was originally with PTSB and my fixed rate of 3.7% is up this month , pepper are putting me on a 8.36% interest rate
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That’s a big jump in interest. If my mortgage was to go up say 400 or 500 euro I don’t know where the extra money would come from….I’m dreading when this happens, ….what then insolvency? Either that or no food or heating for my family with young kids. It’s horrible to have this looming over any parents shoulders. The government should hang their heads in shame letting this behaviour go unchecked.
 
REDRUNNER said:
The government should hang their heads in shame letting this behaviour go unchecked.
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And what have you done yourself about it?

Vulture victims should get together in advance of the election

People who are paying 8% and 9% to vulture funds when they would be paying about half that if they had not been sold by their original lender should organise themselves in advance of the election. You should hold people like Paschal Donohoe accountable for telling you that you would not lose...
www.askaboutmoney.com

The government is not going to do anything unless you guys make a nuisance of yourselves.

Brendan
 
Brendan Burgess said:
And what have you done yourself about it?

Vulture victims should get together in advance of the election

People who are paying 8% and 9% to vulture funds when they would be paying about half that if they had not been sold by their original lender should organise themselves in advance of the election. You should hold people like Paschal Donohoe accountable for telling you that you would not lose...
www.askaboutmoney.com

The government is not going to do anything unless you guys make a nuisance of yourselves.

Brendan
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Fair point Brendan, personally in in limbo at the moment where I’m on a low fixed rate since before my mortgage was sold. I can’t complain too much about something that hasn’t happened to me yet. I’ve contacted my local TD’s office to raise the issue of vulture funds and I’m keeping my ear to the ground on any developments. I’m not far enough along the road for anyone to bring my case forward. But I 100% agree that everyone needs to shout about any unfair interest rises and raise the issue wherever possible.
 
REDRUNNER said:
That’s a big jump in interest. If my mortgage was to go up say 400 or 500 euro I don’t know where the extra money would come from….I’m dreading when this happens, ….what then insolvency? Either that or no food or heating for my family with young kids. It’s horrible to have this looming over any parents shoulders. The government should hang their heads in shame letting this behaviour go unchecked.
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Yes it’s a €465 jump from what we are paying.
 
REDRUNNER said:
That’s a big jump in interest. If my mortgage was to go up say 400 or 500 euro I don’t know where the extra money would come from….I’m dreading when this happens, ….what then insolvency? Either that or no food or heating for my family with young kids. It’s horrible to have this looming over any parents shoulders. The government should hang their heads in shame letting this behaviour go unchecked.
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Is this the government that provided for very generous additional tax relief?

The government that introduced so many protections for mortgage holders that it is near impossible to get a repossession.

The government that got the banking federation to agree new rules to allow a large number of those with "vulture funds" change to a regular lender.

I think the government here has bent over backwards to assist with mortgage difficulties.

In most other countries there would have been tens of thousands of repossessions within 6 months of payment difficulties and court systems that give the repossession in local courts almost automatically.
 
peemac said:
Is this the government that provided for very generous additional tax relief?

The government that introduced so many protections for mortgage holders that it is near impossible to get a repossession.

The government that got the banking federation to agree new rules to allow a large number of those with "vulture funds" change to a regular lender.

I think the government here has bent over backwards to assist with mortgage difficulties.

In most other countries there would have been tens of thousands of repossessions within 6 months of payment difficulties and court systems that give the repossession in local courts almost automatically.
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It’s the government that told people they would be no worse off if they were sold to vulture funds, yet they are raising interest rates to such an extent that people are finding their mortgages doubled. Not all customers sold to vulture funds are as a result of financial difficulties. Some are just sold on as part of a bigger deal when banks leave the country. But by this action and the prospects of a mortgage near doubling, I will certainly be facing financial difficulties…so I’m now very much worse off because the government are not following through on their promise about vulture funds.
 
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I watch pascal Donohoe being interviewed on telly one night a few years back….being asked about mortgage prisoners, and vulture funds.
His response was that mortgage prisoners equate to a very low percentage of Irish mortgages, and that the government can’t be seen to be deterring foreign investment. Mortgage relief is little help to people that have mortgage payments jacked up so much that it’s most likely going to cause missed payments and arrears.
“Excuse me if I don’t see the government as my knight in shining armour….coming to the rescue.”
 
REDRUNNER said:
It’s the government that told people they would be no worse off if they were sold to vulture funds, yet they are raising interest rates to such an extent that people are finding their mortgages doubled. Not all customers sold to vulture funds are as a result of financial difficulties. Some are just sold on as part of a bigger deal when banks leave the country. But by this action and the prospects of a mortgage near doubling, I will certainly be facing financial difficulties…so I’m now very much worse off because the government are not following through on their promise about vulture funds.
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if your mortgage was sold to them and you arent in any difficulty why not just switch?
 
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peemac said:
Is this the government that provided for very generous additional tax relief?

The government that introduced so many protections for mortgage holders that it is near impossible to get a repossession.

The government that got the banking federation to agree new rules to allow a large number of those with "vulture funds" change to a regular lender.

I think the government here has bent over backwards to assist with mortgage difficulties.

In most other countries there would have been tens of thousands of repossessions within 6 months of payment difficulties and court systems that give the repossession in local courts almost automatically.
Click to expand...

Whataboutery never helps arguments.

I am up to date with my payments and I still cannot switch. I have tried. There are other circumstances which stop people from switching lenders.

But back to the OP where it was asked has anyone come across a situation where the warehoused amount, which is supposed to be interest free, is in fact having interest charged on it by hiking up the interest on the active part of the mortgage loan.
 
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REDRUNNER said:
That’s a big jump in interest. If my mortgage was to go up say 400 or 500 euro I don’t know where the extra money would come from….I’m dreading when this happens, ….what then insolvency? Either that or no food or heating for my family with young kids. It’s horrible to have this looming over any parents shoulders. The government should hang their heads in shame letting this behaviour go unchecked.
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Thats exactly what an Insolvency solution is designed for. Your PIP can change the payment terms so the payment is affordable usually by term extension, rate change and possibly write down
 
RayRoss said:
Whataboutery never helps arguments.

I am up to date with my payments and I still cannot switch. I have tried. There are other circumstances which stop people from switching lenders.

But back to the OP where it was asked has anyone come across a situation where the warehoused amount, which is supposed to be interest free, is in fact having interest charged on it by hiking up the interest on the active part of the mortgage loan.
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I am a PIP and I have seen evidence of Pepper unilaterally changing terms of PTSB Warehoused loans back to capital plus interest
 
Hi Raging Bull.

They are not changing it on any records or files but I can show through correspondence and calculations that they are keeping the interest on the active part of the loan very high to offset what they would be getting on the warehoused amount if interest was being charged.

As for Pepper changing terms unilaterally what came of it?
 
Blackrock1 said:
if your mortgage was sold to them and you arent in any difficulty why not just switch?
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I’ve tried to switch with every bank and CU but my salary now falls short of the criteria needed, original mortgage was 18 years ago, my salary has dropped since the Celtic tiger era. When they hear I have 2 kids if seems to make it completely out of reach in the banks view.
My house is valued at 375,000 our mortgage is 160,000 my salary is 34,000 and my wife who is carer for her mother can’t be taken into account. I’ve been told with the kids we’re now no longer seen as being able to afford it.
The banks forgot to mention the stipulation all those years ago that we shouldn’t start or expand a family.
 
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