Hi, I’m looking for some advice on behalf of my parents who took out an interest only mortgage in 2008 to invest in a high risk foreign property investment that never materialised. The term is due to expire in sept 2025 (corrected from initial post) , when they will both be 75. The issue is that the interest rate tracks the ECB rate and my parents are now now faced with their mortgage payment trebling from €300 to over €1,000 p.m while only receiving state pensions. The repayments are approx 50% of their monthly income. They have never been in arrears before. but simply cannot afford a repayment of €1,000 per month. What is the likelihood of Pepper offering a settlement to clear the loan? My parents have no other assets or source of income. So I would be considering refinancing my home to try to pay down the capital. The loan value is €350K and property value is approx €450 - €500K. I have approx €200K of equity in my home.
Would any consideration be given to the fact that they were sold a mortgage on their primary residence that would mature after retirement? They also don’t want to sell their home when the mortgage matures, as there wouldn’t be enough equity left to buy another property in Kildare and they obviously won’t get a mortgage. TIA
Would any consideration be given to the fact that they were sold a mortgage on their primary residence that would mature after retirement? They also don’t want to sell their home when the mortgage matures, as there wouldn’t be enough equity left to buy another property in Kildare and they obviously won’t get a mortgage. TIA
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