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split mortgage

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  • 05-03-2013 4:23pm
    #1
    beaver111
    Registered Users Posts: 234 ✭✭


    ptsb have offered me a split morgage is it a good plan or a bad plan:confused:


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    beaver111 wrote: »
    ptsb have offered me a split morgage is it a good plan or a bad plan:confused:

    That depends on how much value you put on knowing exactly what half your repayment will be for a period of time. If you don't mind the occasional rate change opt for variable, if you are happy to pay a premium for the peace of mind of knowing what your repayment will be for a fixed number of years go fixed, if you want to hedge your bets take the split option.


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    #3
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    Is this an offer of a Split Mortgage as a restructure due to arrears? That's different to what killers1 is discussing.


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    #4
    beaver111
    Registered Users Posts: 234 ✭✭beaver111


    Its a restructure Liam half goes into a warehouse acc
    Liam D Ferguson wrote: »
    Is this an offer of a Split Mortgage as a restructure due to arrears? That's different to what killers1 is discussing.


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    #5
    beaver111
    Registered Users Posts: 234 ✭✭beaver111


    Its a restructure Liam half goes into a warehouse acc
    Liam D Ferguson wrote: »
    Is this an offer of a Split Mortgage as a restructure due to arrears? That's different to what killers1 is discussing.


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    #6
    beaver111
    Registered Users Posts: 234 ✭✭beaver111


    Its a restructure Liam half goes into a warehouse acc
    Liam D Ferguson wrote: »
    Is this an offer of a Split Mortgage as a restructure due to arrears? That's different to what killers1 is discussing.


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    #7
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    I've seen one example of a PTSB split mortgage and it looked like a good plan. Basically a combination of interest-only on part of the loan at 1% (the warehoused bit) and the rest normal capital-and-interest payments. The split should be worked out so that the overall repayments come in at something you can afford.

    Without knowing the specifics of your circumstances, I'd say the idea in general is a good one for a couple of reasons: -
    • The interest rate at 1% on the interest-only part is only 1% so that's a concession.
    • You get to stay in your house for lower than the normal mortgage repayments.

    You need to remember that the interest-only "warehoused" bit will not be paid down unless you find some way of paying it off in the future. If you don't, when you come to the end of the mortgage term, you'll owe the full "warehoused" amount.


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    #8
    mozattack
    Registered Users Posts: 1,908 ✭✭✭mozattack


    ...kicking the can...


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    #9
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    mozattack wrote: »
    ...kicking the can...

    True, but what's the alternative? Debt forgivness would be better for the customer, but as that's clearly not happening, what other choices does the poster have? We'll assume that they don't want to have their house repossessed.


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    #10
    cookie1977
    Registered Users Posts: 6,794 ✭✭✭cookie1977


    Under MARP cant you get a free meeting (up to 200euro) with an accountant? Might be worth looking at to get another view too.
    http://namawinelake.wordpress.com/2012/09/06/minister-providing-free-accountancy-advice-for-up-to-40000-homeowners-in-mortgage-distress/


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    #11
    mozattack
    Registered Users Posts: 1,908 ✭✭✭mozattack


    Liam D Ferguson wrote: »
    True, but what's the alternative? Debt forgivness would be better for the customer, but as that's clearly not happening, what other choices does the poster have? We'll assume that they don't want to have their house repossessed.

    Seriously though is not best to go down the bankruptcy route, lose the house and 3 years later you have no debts rather than putting away of chunk of the loan for a period at at interest rate (which although great) is only 1% less than what most trackers mortgage holders are paying?


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    #12
    beaver111
    Registered Users Posts: 234 ✭✭beaver111


    ive looked into it ,i owe them 135 grand and in arrears to them for4 grand and have been told to stay away from this plan,as a previous poster said "kicking the can down the road " if i went into to the bank and ask them for a right down how would it go?????


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    #13
    roro2
    Registered Users Posts: 412 ✭✭roro2


    beaver111 wrote: »
    ive looked into it ,i owe them 135 grand and in arrears to them for4 grand and have been told to stay away from this plan,as a previous poster said "kicking the can down the road " if i went into to the bank and ask them for a right down how would it go?????

    Not very well I'd imagine, if they've already offered you a split mortgage option.


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    #14
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    roro2 wrote: »
    Not very well I'd imagine, if they've already offered you a split mortgage option.

    Agreed, a write down wont be got, why would they when they dont have to?. In fairness they have an arrangement offered to you which is sustainable in the medium term. There is an element of kicking some of it down the road but if you are better posititioned in a few years to pay this back then it may be the right option.


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    #15
    beaver111
    Registered Users Posts: 234 ✭✭beaver111


    would they reduce my interest rate, im paying 4.34 at the moment if i got it between 2 and 3 percent it might be worth going for


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    #16
    roro2
    Registered Users Posts: 412 ✭✭roro2


    I reckon the warehouse account would have a reduced interest rate, but nobody here can answer that.
    If you're asking will they just reduce the rate on your current mortgage - no.


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    #17
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    beaver111 wrote: »
    would they reduce my interest rate, im paying 4.34 at the moment if i got it between 2 and 3 percent it might be worth going for

    They wont reduce the rate. In fairness parking half the balance at a rate of 1% on it which is common enought when splitting and then paying 4.34 on the other half is a good enough offer.

    They cant just starting reducing the rate for mortgage holders in trouble. If they did there would be a mass strategic default so people could get on to the lower rate.


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    #18
    skaidbo
    Registered Users Posts: 1 ✭skaidbo


    iv,e been given a split mortgage but now im not getting any trs on the reduced amount is this normal


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