You can now extend your mortgage until you are 90!

peemac said:
start will get 3% pa and will get their capital back at some point and there might be a few bob left.
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Am not convinced. These kind of loans are more likely to fall back into arrears again. Also huge uncertainty about when it will be repaid.

Will 3% cover Start's cost of capital for an open-ended loan?
 
NoRegretsCoyote said:
Am not convinced. These kind of loans are more likely to fall back into arrears again. Also huge uncertainty about when it will be repaid.

Will 3% cover Start's cost of capital for an open-ended loan?
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how is it likely if the person is on such a low mortgage payment that has been calculated based on their income levels which should not change. Its not open ended, it has a term. Whether its repaid if the pass way prior to the term ending, or on the term ending doesnt really matter. If it comes to term ending the lender at its discretion can extend the arrangement if they wish. Entering a PIA is fairly onerous task and there are plenty of terms/conditions to prevent abuse, so I dont see this becoming a free for all. Its a solution that depends on plenty of variables.
 
Brendan Burgess said:
Where are you getting this from?

And what does "an annuity basis" mean in this context? It means nothing if the person is paying nothing.

Banks will not lend if they can't enforce their security. The courts should not second guess the credit decisions of lenders and certainly should not set the interest rates.

Brendan
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The highest rates are regularly charged to those in the most trouble ie deep arrears and significant negative equity.

A low interest only mortgage, to extend past life expectancy, may well be sustainable, and in some of the cases I've seen no write down of principal would be needed.

Banks' are too limited in the restructures they offer imo.

Thankfully many judges considering PIA applications don't share your view about courts setting interest rates in problem cases.
 
I'll see your 90 and raise you to 99!

www.independent.ie

Woman to pay mortgage until she is 99 after reaching deal to extend term

A court has approved a personal insolvency arrangement (PIA) which will allow a 57-year-old woman make mortgage repayments on her home until she reaches the age of 99.
www.independent.ie www.independent.ie

A court has approved a personal insolvency arrangement (PIA) which will allow a 57-year-old woman make mortgage repayments on her home until she reaches the age of 99. The decision is one of a number of recent rulings where arrangements extending mortgages far beyond normal life expectancy have been approved in circumstances where there is no other workable way of keeping a debtor in their home.

Under the PIA approved by Circuit Court Judge Mary Enright, Dubliner Belinda Kane will have the term of her mortgage extended to 504 months.
The term extension allows for more manageable mortgage payments. Should she die before the end of the mortgage term, the remainder of the mortgage will be paid from her estate. The arrangement had been objected to by her lender Permanent TSB.

Probably only a matter of time until a PIA to age 100 is reached! And, of course, when one turns 100, one gets a nice tax-free gift cheque for €2,540 from the President! That could be used to mop up any arrears!
 
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Last year a 62 year old Meath builder got a 30 year interest only ( Tracker at 0.8% ! ) mortgage as part of a PIA so I'm not sure why this case is receiving so much attention. viagra prix
 
Laughahalla said:
Somebody should write a play book on how to get one of these personal infinity mortgages
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This is basically social policy by judges.


Most of these people will be homeless if repossessed as they are old and have little income.

I don't think homelessness is either cheaper or socially better.
 
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