Moved from the thread about Vulture Funds not offering fixed rate options
I'm glad this issue got some attention and it's real concern. Whilst some people had mortgages in arrears sold to vulture/investment funds , many were not in arrears. Obviously those with no arrears or historical repayment issues have an opportunity to switch , those that may have cleared /Reduced arrears and are paying their mortgages are stuck on exceptionally high interest rates and have Zero option's.
The slightest interest rate increase is likely to infact lead to either an inability to afford increases on monthly repayments, increased arrears and a whole host of new problems. This on top of already increased cost of living challenges.
Obviously Vulture/Funds are not obligated to offer fixed or reduced rates and some folks will have little sympathy for those in arrears or with historical problems.
I don't know if there's a solution but it would seem to me if Vulture/Investment funds don't react, they'll face more problems with arrears and costs likely increasing.
Obviously distressed mortgage holders could just start paying interest only but all this does is kick problems down an even longer road.
Case in Point
My situation as an example, and I'm one of the lucky one's.
I'm on 3.9% and have been since my mortgage sold to a Vulture fund in 2019. I had arrears , primarily as a result of reduced income due to illness . Managed to reduce arrears substantially and have been paying my mortgage in Full for over 2 years. I've a relatively small balance of €38k but do have warehoused split (entered into with original mortgage provider) , no payment no interest but will mature in 2034 and will need to be dealth with. I'm 55 and single.
I've a long term illness , will likely never work full time again but can manage albeit cost of living has crucified me. House worth about €170k , very rural and I've Zero options. Some will suggest sell , not so simple , I'll definitely not have enough to purchase another property and whilst I'll have savings , I'd likely be looking at a rent , 3 times more than what my mortgage payment is and as folks will know , Zero security of tenancy and all the challenges that go with renting, even finding a place would be a nightmare.
I certainly don't expect a dig out but I've limited earning potential, Vulture fund will not entertain any discussion of fixed or reduced rate , fine but if rates increase , I'll have but one option, pay what I can afford (€260 PM) current full mortgage and watch arrears grow. I still have the costs of insurance, maintainence, utilities etc.
I'm actually lucky with such a small mortgage payment, unlucky with illness , what those in more serious arrears or even No arrears but previous black marks, higher mortgage payments, Children , additional costs will face, I shudder to think.
I'd honestly not be at all surprised if mortgage arrears and defaults grow in the coming years.
My situation Obviously is not intended to be reflective but just to show at a very basic Level the challenges many thousands will face in the coming months.
I'm glad this issue got some attention and it's real concern. Whilst some people had mortgages in arrears sold to vulture/investment funds , many were not in arrears. Obviously those with no arrears or historical repayment issues have an opportunity to switch , those that may have cleared /Reduced arrears and are paying their mortgages are stuck on exceptionally high interest rates and have Zero option's.
The slightest interest rate increase is likely to infact lead to either an inability to afford increases on monthly repayments, increased arrears and a whole host of new problems. This on top of already increased cost of living challenges.
Obviously Vulture/Funds are not obligated to offer fixed or reduced rates and some folks will have little sympathy for those in arrears or with historical problems.
I don't know if there's a solution but it would seem to me if Vulture/Investment funds don't react, they'll face more problems with arrears and costs likely increasing.
Obviously distressed mortgage holders could just start paying interest only but all this does is kick problems down an even longer road.
Case in Point
My situation as an example, and I'm one of the lucky one's.
I'm on 3.9% and have been since my mortgage sold to a Vulture fund in 2019. I had arrears , primarily as a result of reduced income due to illness . Managed to reduce arrears substantially and have been paying my mortgage in Full for over 2 years. I've a relatively small balance of €38k but do have warehoused split (entered into with original mortgage provider) , no payment no interest but will mature in 2034 and will need to be dealth with. I'm 55 and single.
I've a long term illness , will likely never work full time again but can manage albeit cost of living has crucified me. House worth about €170k , very rural and I've Zero options. Some will suggest sell , not so simple , I'll definitely not have enough to purchase another property and whilst I'll have savings , I'd likely be looking at a rent , 3 times more than what my mortgage payment is and as folks will know , Zero security of tenancy and all the challenges that go with renting, even finding a place would be a nightmare.
I certainly don't expect a dig out but I've limited earning potential, Vulture fund will not entertain any discussion of fixed or reduced rate , fine but if rates increase , I'll have but one option, pay what I can afford (€260 PM) current full mortgage and watch arrears grow. I still have the costs of insurance, maintainence, utilities etc.
I'm actually lucky with such a small mortgage payment, unlucky with illness , what those in more serious arrears or even No arrears but previous black marks, higher mortgage payments, Children , additional costs will face, I shudder to think.
I'd honestly not be at all surprised if mortgage arrears and defaults grow in the coming years.
My situation Obviously is not intended to be reflective but just to show at a very basic Level the challenges many thousands will face in the coming months.
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