Will Pepper/Shoreline give me a discount for early repayment?

Redone

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I've just been told by someone that Pepper sold their mortgage to BOI 4 months ago. I'm really surprised by this.

A.) Why would BOI take on a debt from Pepper - even at a discount, isn't that what the pillar banks are trying to get away from for the last nearly 10 years.

B.) Why would Pepper sell - I know why the typical "vulture fund" would sell, but aren't Pepper actually trying to set up an actual mortgage business in Ireland.

The reason I'm asking is because about 2 years ago I offered Pepper to buy out our mortgage at market value (€201k mortgage - €145k market value at the time) and about 2 months later (after chasing) we got a letter saying application is refused. We are maintaining payments to Shoreline.

Before getting back on to Pepper (through Shoreline) does anyone know/surmise if things may have changed? Really curious about the mortgage sale to BOI.

If a redemption value were offered by Pepper would be looking to switch to EBS.
 
From the Sunday Times

Bank of Ireland makes swoop on vulture loans

Niall Brady Published: 3 April 2016

Bank of Ireland and other lenders are seeking to buy performing debt (Leah Farrell)


AMERICAN private equity firm Lone Star is selling some of the home loans it acquired two years ago to Bank of Ireland, signalling the beginning of a retreat by vulture funds from the home-loan market.


In letters received last week, affected homeowners were told that Shoreline Residential, a Lone Star affiliate that bought their mortgages in 2014, was selling them to Bank of Ireland. The letter came from Pepper Asset Servicing, which services the loans on behalf of Shoreline.

B.) Why would Pepper sell - I know why the typical "vulture fund" would sell, but aren't Pepper actually trying to set up an actual mortgage business in Ireland.


Pepper did not sell its mortgages to Bank of Ireland.

Shoreline bought a group of former Irish Nationwide mortgages from IBRC.
They were the owners, but they appointed Pepper to administer those loans on their behalf.
Shoreline, not Pepper, then sold on the performing ones to Bank of Ireland.

A.) Why would BOI take on a debt from Pepper - even at a discount, isn't that what the pillar banks are trying to get away from for the last nearly 10 years.

These were performing mortgages, presumably in positive equity. So Bank of Ireland was delighted to buy them. All the lenders are trying to grow their loan book. I have an idea that they paid a small premium when buying these mortgages.


The reason I'm asking is because about 2 years ago I offered Pepper to buy out our mortgage at market value (€201k mortgage - €145k market value at the time) and about 2 months later (after chasing) we got a letter saying application is refused. We are maintaining payments to Shoreline.

There is no harm in asking. But as you don't have a cheap tracker and as you are not in arrears, there really is no reason for Shoreline to give you a discount. BoI probably didn't buy your loan because it was in negative equity.
 
Got a letter from Shoreline/Pepper to say that they were in the process of selling my mortgage to BOI. Just wondering, for anyone who was in the same situation before, did BOI keep the interest rate at the rate Shoreline was charging, or was it changed to the BOI rate? Any details or insights (positives\negative) round the changeover would be greatly appreciated. Thanks
 
Hi Gordon. It was Irish Nationwide/IBRC.
The loan is performing and no longer in negative equity (the latter point perhaps explaining why it wasn't in the original series of letters sent in 2016 which the earlier posts refer to).
 
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