ICS - Split Level Mortgage - Advice needed.

B

Bee2877

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Hi,

New to the site. Tentatively posting & hoping I do it right (i've read the guidelines).

ICS have told us we are down to our last option with them - i.e. a Split Level Mortgage. We have 2 weeks to return the SFS (which we've completed 3 times in past 18mths with nothing changing on it. Red tape etc., )

I get the general gist of the Split Level but since they have very little literature on the actual process i'm confused. Essentially they've said that because we have "no money coming to us" (i.e. future inheritance etc.,) and no savings, that our only option is to do Split Level with a sale.

Can someone with more business acumen than me please explain what this means? Im assuming it means when we finish paying the larger % in 30 years and don't / may not have the "parked" amount to pay back, we sell our house to pay it off..is that correct?

Any advice/ explanation would be great. Cheers ~ Bee
 
A split mortgage from ICS/Bank of Ireland is not really comparable to split mortgages from other lenders. If they do send you the documentation on this, I would very much like to see a copy . You can email it to brendan at this website.

Let's assume you have a mortgage of €300k and they split it into €200k active and €100k warehoused.


But they will charge you and roll up the interest on the warehouse at the normal rate of interest on your mortgage.

Let's assume you are on a tracker of ECB + 1.5%. Let's say that the average rate over the next 20 years is 4%. You will still owe €219k on the warehoused part after 20 years.

If you are on a SVR mortgage which averages 6.5% over the next twenty years, you will owe €350k

You should publish a full Case Study and you will be better informed on your options. You may be better off optiong of Voluntary Surrender and bankruptcy
 
Thanks for the reply Brendan.

The current outstanding mortgage is 225K.
Description- H/L Variable LTV>80%<500K
Rate - 4.450%

Am i right in thinking ICS/BOI are one of the only providers charging interest on the warehouse section of split level mortgages? My cousin is considering SL with PTSB and ive heard no mention of interest on their warehoused part.
 
As I say, you should complete the full Case study format.

AIB and ptsb charge no interest on the warehoused amount
 
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