Permanent tsb transferring my investment only, tracker mortgage to pepper finance company

H

Halladubha

Registered User
Messages
2
hi I have just received a letter today from permanent TSB to say that they are transferring my second mortgage which is on a property we bought 14 years ago to let and they are transferring it over to Pepper investment. When we took out this mortgage it was on a 5-year interest only basis and an EU tracker, as we were going to sell it on but then the crash came and the value of the property depreciated. The bank has never contacted us in relation to this mortgage and we have never contacted them and so we have been paying interest only for 14 years and still owe the full amount. The property is now worth Way less than what we owe and I don't know what to do. We owe €171000, it's valued around €140,000, rented through the ROS scheme, rent €720 per month, with a longterm tenant agreed around 65, who wants to stay there for the rest of her days, so would you think it'd be possible to negotiate with the likes of Pepper investments and try and sell the property and would they accept whatever we get for it or has anyone had any experience in this field. I don't want to contact the bank because I'm afraid of what they'll tell us can someone please help us. Also we have a mortgage on our family to the value of €65000.
 
Last edited:
Hi Halla

You should provide this information and you will get a more meaningful answer.

Case study - Information required for mortgage arrears and negative equity questions

Please copy and paste this post into a new thread. If you give comprehensive information, it will maximise your chances of getting comprehensive and useful results. Income details Net monthly (i.e. after tax) Income self: nature of income e.g. self-employed/public servant...
www.askaboutmoney.com

Although you are in negative equity, it is very likely the property is very profitable with the rent well exceeding the interest being charged.

Full details on the sale here: https://www.askaboutmoney.com/threads/ptsb-selling-3-400-interest-only-buy-to-let-loans.220534/

Brendan
 
Last edited:
Hi Brendan, thanks for your advice, I've made changes, can you check if it's OK now, thanks
 
Hi Halladubha, I am in exactly the same situation as you. If I had written your 1st post it would read pretty much exactly the same as yours.

I have no possibility of making the full capital repayment of €300,000 and the house is around 80,000 in negative equity. I feel I will be at the mercy of Peppers. I hope I can negotiate an arrangement I can afford without impacting the family home. Time will tell.
 
check if you can get another mortgage for about 60% of the amount owing. If you can and are happy with the repayments, then approach Pepper to buy off at 60% of the sum. They would have bought a portfolio, some are performing and others are not. They might be happy to take a quick profit on your loan if approached. Its a win for you, in that you get at 40% writedown and a win for them in that they get a quick profit.
 
Hi Ravima

All the mortgages in this portfolio are performing. Pepper paid €1.2 billion for €1.4 billion worth of interest-only mortgages, most of which are on trackers.

ptsb selling 3,400 interest-only buy to let loans

Average balance: €375k Average remaining term: 10 years None subject to payment breaks Total nominal value:€1.4 billion Sale price:€1.2 billion “This transaction will increase the bank’s transitional total capital ratio by 2.1 per cent, strengthen the balance sheet and provide us with...
www.askaboutmoney.com

Pepper is going to securitise the mortgages.

They will not be offering discounts for early repayment.

Brendan
 
Brendan

When you say, "Pepper is going to securitise the mortgages", how will Pepper structure these loans to make a financial return? Can you give a numbers example?
Why do you state that "They will not be offering discounts for early repayment." when Pepper have bought the loan book at a discount?

Topcorner12
 
Topcorner12 said:
how will Pepper structure these loans to make a financial return?
Click to expand...

Pepper's business is their own affair. I am concerned only with the impact on consumers.

Topcorner12 said:
Why do you state that "They will not be offering discounts for early repayment." when Pepper have bought the loan book at a discount?
Click to expand...

That is a non sequitur. It is a matter of fact that their practice is that they do not give discounts.

Brendan
 
You must log in or register to reply here.
Back
Top