# How will split mortgages be treated?



## AppleSun (30 Jul 2015)

Brendan Burgess said:


> If you are on a special repayment arrangement on your mortgage, a new full repayment based on the new rate may not become due until the expiry of that arrangement.



So if I am now on a split mortgage... I am assuming that would be classed as a 'Special Arrangement'....And the expiry of that arrangement is when I turn 65 and pay off the warehoused amount in one additional lump sum...Does that mean I don't get the new rate until I'm 65??


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## Rory Boyd (31 Jul 2015)

thanks Brendan..thats roughly what I had calculated. Regards


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## AppleSun (4 Aug 2015)

Darn, so more than likely no refund....

I'm on a split mortgage directly due to this whole thing. My relationship broke up  due to the absurd amount of pressure we were under at the time. Ex partner then walked away from the house leaving me to pay full mortgage and a young child. I was going to hand back the keys/Personal Insolvency, when PTSB then offered me a split mortgage based on my earnings alone. I'm really not looking forward to this letter now....

what happens the tracker rate in this case? If I'm still on a split mortgage, i'm guessing i lose the tracker rate again?


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## Brendan Burgess (4 Aug 2015)

Hi Apple

You will be in a better position after this, than with your split mortgage. 

You will owe less. 

Depending on the numbers, you will probably have the same repayment going forward. However, you will be paying down your capital a lot faster. 

If you want to post the numbers, I will try to work it out for you.

Brendan


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## Brendan Burgess (4 Aug 2015)

AppleSun said:


> Ex partner then walked away from the house leaving me to pay full mortgage and a young child.



This could be a problem for you.

Both parties to the mortgage must sign to ask for the lower rate and the refund. 

I have objected to this precisely because of cases such as yours. Your ex could become difficult and you might not get the deal.

Brendan


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## AppleSun (4 Aug 2015)

Brendan Burgess said:


> This could be a problem for you.
> 
> Both parties to the mortgage must sign to ask for the lower rate and the refund.



I know :-( . He really left me in it and I've been dealing with it by myself for a few years now. trying to get him to sign the split mortgage papers was next to impossible but he eventually did it, once the bank confirmed it was all based on my income alone. He doesn't want the bank knowing his current address, so does not want to sign anything. If I do get any compensation, no matter how small, i'm guessing he will want half....once there's money involved....


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## Totesconfused (4 Aug 2015)

Hi all,

First time poster and find this forum really helpful. I have split mortgage also and am waiting on my letter was advised should be here Friday!

My friend also on split received here's today..circumstances same as mine...mortgage 2007 rate 4.5 never in arrears, few interest only agreevents through the period. Letter states 40k to go off warehouse portion and 6k refund

5.5 compo..my question is can they determine that the "overpayment" for want of better word is offset on the warehouse portion even if there were never arrears? And also how do they determine what portion of it is refunded and what is applied to warehouse?

I called the "dedicated team" today and they couldn't answer me?

Appreciate any advice


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## Hopefully (4 Aug 2015)

Hi Totesconfused on the letter did they say that your friend could have the option of them treating the mortgage had it not being split mortgage because it's say that on there website in the Q&A for example cld your friend afford their full mortgage nw wit the reduced rate?


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## Totesconfused (4 Aug 2015)

Hi hopefully! That's where we are confused as the website indicates that 1) if no arrears any overpayment will be refunded -neither of us had any arrears ever 2)in special arrangements they will look to put the mortgage back to the position it should be in should a tracker have been taken-does this mean you would then be entitled to the full refund

As far as I know there was no offer to put it back to its pre split state in the letter but I'll get the details in full tomorrow--

I was surprised today when I called that they could not tell me on a very high level exactly what the process was for a split mortgage with no arrears in the calculations


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## Totesconfused (4 Aug 2015)

I'll know mine in more detail when the letter drops! He said the more complicated ones were the last ones to issue! No offer to take my Q and call back he kept going round in circles...my question was "how (on a very high level individual figures aside) are split mortgages with no previous arrears balances going to be treated?" His answer was continually "I can't see your letter scanned in we advise to wait read it carefully and get financial advice" was on the phone 15mins and no answer....asked for a diff member of the team that would no the answer and he offered to put me through to the mortgage restructure dept!i declined that offer... I will keep u updated with the exact details 2moro


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## AAM_User (4 Aug 2015)

Would the split or warehoused portion not be counted as arrears in this case?

They've been put aside with no interest for a period of time, but they're not being paid off what's owed.


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## Brendan Burgess (5 Aug 2015)

AAM_User said:


> Would the split or warehoused portion not be counted as arrears in this case?



Spot on! The only reason you are not in arrears, is because ptsb  warehoused a proportion of the mortgage for you! 

They will redo the calculation as if you had no split and then see what your situation is. Maybe you will be able to meet your full repayments and you will not need a split mortgage.  Maybe you will need a split mortgage, but it will be a lot smaller. 

People on split mortgages are getting extraordinarily fair deals. You may still have a bit of the mortgage which has to be warehoused and you will be getting a refund as well.  ptsb should make it conditional on granting a new split, that the refund be paid off the mortgage or be treated as an advance payment. 



Totesconfused said:


> was on the phone 15mins and no answer....asked for a diff member of the team that would no the answer



This is very complicated and there really is very little point in discussing it until you get your letter and see the figures. Most borrowers would have very little chance of understanding it and would need an expert to look at it.

Brendan


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## AppleSun (5 Aug 2015)

my letter arrived this morning.  It was read to me over the phone so really I will have to see it for myself but it looks like, with no arrears,  they are taking €60  (V. odd, thats not 000's) off my main mortgage, €62k+ off my warehoused portion, compensation of just over 7k plus 5k comp.

There is no mention of coming off the split. My new rate is 0.80% +ecb 0.5%. my monthly payment has dropped by several hundred.


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## damien (6 Aug 2015)

my letter arrived today. 4k refund in overpayments, 5.5k compensation and 50k reduction on my warehouse account.

like above there is no mention of coming off split at this point. when i split the mortgage  i was obviously
in arrears and they got capitalised. should my mortgage not have been returned to how it should have been
had i never split as i wouldnt have needed it had i been on the correct rate?

my main mortgage account + warehoused account are still 10k above what i originally borrowed
which seems crazy to me given how much i have paid over the years. whilst i wasnt paying
enough to cover all the interest on the old rate before split, i thought id be better off than i am with new rate applied.
when i was in arrears was the interest i wasnt covering compounding? would my figures look better now
if they took the split out of the equation?


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## AppleSun (6 Aug 2015)

Damien, would you prefer to come off split now? Bearing in mind the ECB rate is probably at the lowest it will ever be so the only way is up!


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## Brendan Burgess (6 Aug 2015)

I would be happy to have a look at the documentation for someone with a split mortgage . Email the following to brendan at this website 

1) mortgage statements from 2009 to date 
2) the split mortgage offer 
3) the redress letter 

Brendan


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## AppleSun (6 Aug 2015)

Brendan, I will PM you.


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## Tok 3165 (6 Aug 2015)

Received our letter this morning from Springboard. We are also on a split mortgage. There was 2 cheques included, one for €3.251.45 in compensation. The other for €4,087.87 in overpayments. €24,000.39 taken off the balance of the warehouse portion. There was no form to sign and send back. Our monthly payment was reduced by €145 approx. Our interest rate was reduced from 5.16% to 3.15 %.  Any idea where to go for good legal advice that won't cost a bomb! As we are not too knowledgeable about mortgages or interest rates in general I'm following all these posts with great interest.


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## Brendan Burgess (6 Aug 2015)

Hi Tok

You don't really need any legal advice on this. 

It's possible you might need financial advice, but it seems that you got a good deal anyway. 

I have not seen the letter from Springboard. I would be interested in seeing it and will give you my views on it, if you email it to me at brendan at this website.

Brendan


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## Tok 3165 (6 Aug 2015)

Hi, Brendan. Thanks for replying to me. I will email you the letter tomorrow


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## Caroline14 (14 Aug 2015)

Hi Brendan would really like your help also. Have found this thread useful. Could you tell me how I pm / email you if you wouldn't mind reviewing my details & split mortgage details.


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