Pepper...interest rates...

amdublin

I have two residential investment properties, functioning normally, never any missed payments etc. One is an interest only loan, the other full repayment loan. 25/30 years. Taken out approx 15 years ago.

The Bank of Scotland one was transferred to Pepper when a few years ago when BOS moved out of Ireland. The PTSB was moved to pepper about a year ago. Why? No clue. I thought the BOS was one moved just for admin purposes but thinking about it now...who actually owns it/who do I have my mortgage with now??? The ptsb same thing...I assumed it was just an admin thing but am now wondering....was this sold to a vulture fund???

In recent months the interest rates keep going up and up. Another rate increase just received.

What is going on?? Am I with a vulture fund(s)? For two loans that were always performing perfectly....they are now running the risk of them moving into non-performing territory

Anyone got any thoughts/advice?

tnegun

Yes Pepper are a vulture fund, if you were never in arrears you should be able to switch to a main stream lender if you have enough equity in the properties?

amdublin

???

But why should I have to do that. I was with two mainstream lenders already. If I move to one now (with all the costs that entails) how do I know it won't happen again??

Is Pepper a vulture fund?? Or do the manage the mortgages that have been bought by the vulture funds.

tnegun

Sorry yes you're right they manage the mortgages on behalf of the vultures but are practically the same thing. You likely did nothing wrong it was a "commercial" decision. Are any of them trackers?

amdublin

One of them might be a tracker - but not a bargain one (0.5% etc) more like 3.75%

Scar001

ECB rates are up 4% since summer last year - assume your tracker will be increasing by the same amount. With more to come.

tnegun

Best bet is a financial advisor but really you need to get away from Pepper to any other lender, google 'Pepper Mortgage Prisoner' and check out askaboutmoney.com there are far more knowledgeable people on there who will give you some good advice.

howiya

https://www.boards.ie/discussion/2058301975/pepper-interest-rates

Some info on why your PTSB loan was moved last year

https://www.irishtimes.com/business/financial-services/2022/09/21/ptsbs-creditworthiness-raised-by-moodys-on-ulster-bank-loans-deal/

Mrs OBumble

https://www.boards.ie/discussion/comment/120750629#Comment_120750629

And that is true no matter who your mortgage is with.

Jim2007

In terms of who owns your loans, if your loans have been sold on by the lender you will have been informed of this in writing, so the best way to determine your situation would be to review your communication from the lender. 

So what actually happens when your loan is sold on? To start with individual loans are not sold on, entire blocks are. And there is good reason for that - no one is going to buy a block of say 10,000 bad loans and expect to make a profit. So in putting together the block you need to put in mix of loans to make it attractive to the buyer, so that may be the reason why your loans were included in the block.

Now in terms of the actually funds and how they are managed, an awful lot of hype has been written about "vulture funds" etc to sell advertising etc. But the reality is that we have not seen anything like the level of issues expected based on the articles... Which should not be surprising, given that these people are in business to make a profit, must comply with the lending laws and it's in their interest that the majority of people pay off their loans. Remember that is the bet they made when they bought the loans in the first place.

So long as your finances are in order, it won't make any difference who owns your loans and if your finances are not in order, then you are going to be in difficulty no matter who owns the loans - the bottom line is that the lender will want their money back. Assuming your finances are in order, then you should not have any problem moving to another lender if you wish. But do it for the right reason - it benefits you  financially and not because of something you read or heard in the media. 

Mod: Please keep this thread factual, it is not going to be come a platform for rants, there are other forums for that.

tnegun

I respectfully disagree it absolutely matters who owns your loans the vultures are charging the highest variable rates in the market at present up to 9% , if finances are in order switching to one of the traditional lenders where rates are in the region of 4-5%. Having a tracker complicates the decision but one with a margin of 3.75% is likely not going to become valuable again in the short to medium term. There is great advice available for free on askaboutmoney.com but for the sake of a few hundred engaging the services of a financial advisor could save you thousands.

Jim2007

https://www.boards.ie/discussion/comment/120753120#Comment_120753120

If you are a high risk borrower, of course you'll pay more, nobody is going to give you money at the same rate as a low risk borrower without being motivated to do so. And as I said if your financial situation allows it and it makes financial sense switch if you can.

tamara25

how are other people coping with these ongoing interest rates on their mortgages? For me anyway it’s getting more serious now. At this stage now where we can’t even afford to buy enough food for the week… very depressing

amdublin

https://www.boards.ie/discussion/comment/120839121#Comment_120839121

I'm sorry :(

I am not struggling....yet....but it definitely adds pressure. And I think about when it will start getting serious for me...and I also think about people in your situation that you have described. I'm sorry.

I don't have a solution. Do you think talking to MABS might help you? Or to your TD to raise it in the Dail the positions us ordinary people are suffering

tamara25

Thanks for your kind reply. I’ll keep that in mind about contacting a td. Not sure if it would help? If we had the option of fixing our mortgage interest rate that would be great but can’t do that either..

TommyShelby

https://www.boards.ie/discussion/comment/120843569#Comment_120843569

May I ask why you don't have the option of fixing your mortgage interest rate? Are you on a tracker or something at the moment?

tamara25

Yes on a tracker, our mortgage was sold from ptsb to Pepper.

TommyShelby

https://www.boards.ie/discussion/comment/120848391#Comment_120848391

Can you not move to another lender and get a fixed rate with them?

What are the rates like with Pepper?

Sorry for all of the questions. I am one of the Ulster Bank ones (Fixed Rate) that were sold to PTSB and it is managed by Pepper but PTSB supposedly own the mortgage. I feel a bit uneasy that it's managed by Pepper.

Halladubha72

Hi, can you negotiate with Pepper to pay them off. I'm in the same boat, had a mortgagee with ptsb on investment home, interest only, tracker rate. Never in arrears but was interest only still 15 years on. Then pepper took over. Now, the council have made me an offer to buy my house which just about covers what I owe but at least I'll be rid of this headache. But before I accept the offer should I negotiate with pepper to lower the amount I owe if I pay it off now???? I'm not very knowledgeable in this field. Any advice would be appreciated but I may move fast as I don't want to lose the offer from the council.

Geuze

Are Pepper the owner or the servicer of your mortgage?

wads35

There is a case before the high court at the moment. It was heard in Nov23. Basically a couples mortgage was sold by PTSB to Pepper. It was a variable rate mortgage and not in any arrears PTSB rate was around 4% Pepper raised the variable rate to over 8% . Couple suing Pepper for increasing their rate by such a margin as if they were still with PTSB they would be on a 4.3% rate Judgement is expected soon and will have massive repercussions if found for the plaintiff.

Fingers crossed!

amdublin

https://www.boards.ie/discussion/comment/121474470#Comment_121474470

I am holding out for this too!

Pepper now sending me letter, what I assume is a standard response to lots of people complaining laying out the terms and conditions of my original loan and advising I always have the option of (extra expense) moving to another provider. Ehhh why don't you be a decent company and stop fleecing people with normal every day ordinary performing loans