Interest rate with Mars capital

N

Nb1980

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My mortgage was sold to mars quite a number of years ago, it's been performing ever since.

Rate is changing from 2.35% fixed which was my mortgage rate with original provider to 6.05% variable with them as my fixed rate is expired now, adding 300 a month to repayments.

I realise I can't stay on the 2.35% rate forever and if I was with original mortgage provider it would be now 4.65% which would be approx 200 a month higher than fixed rate but still lower than what it will be at 6.05% obviously.

Is there anything I can do to negotiate rates?

LTV is now under 50% so I think 6% is very steep

Thanks in advance
 
You can only negotiate if you've got something to negotiate with. If you can move provider you could threaten them with that. Realistically you might just be as well moving if you can but the question is are you in a position to move.

What's your LTI like? What does your CCR report say?
 
Well my 5 CCR is all good now so I suppose I could move the mortgage. LTI is about 2 times.

How would mainstream lenders receive an application from someone where payments to Mars capital are showing?

I was more thinking along the lines of challenging the fact that the terms of mortgage now are different than the terms would be if I stayed with original lender which I have seen as one of the stipulations. But I could be wrong on that.
 
Nb1980 said:
Well my 5 CCR is all good now so I suppose I could move the mortgage. LTI is about 2 times.

How would mainstream lenders receive an application from someone where payments to Mars capital are showing?
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Why not just apply and find out?
Nb1980 said:
I was more thinking along the lines of challenging the fact that the terms of mortgage now are different than the terms would be if I stayed with original lender which I have seen as one of the stipulations. But I could be wrong on that.
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I suspect that you would be wasting your time. You could have a look at this but I also think that this is a waste of time too:

New campaign to use EU law to challenge vulture funds

New Campaign to leverage EU Law as pathway to Justice for over 200,000 homeowners sold off to Vulture Funds New ‘Join the Claim’ campaign by Misselling.ie calls for strength in numbers of family homeowners to challenge Vulture Funds on a ‘no win – no fee’ basis. 4 November 2024: A...
www.askaboutmoney.com
 
Nb1980 said:
How would mainstream lenders receive an application from someone where payments to Mars capital are showing?
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It should have no impact at all.

They will look at your credit record and if it is clean and your mortgage is not restructured e.g. a split mortgage, they would welcome you.

Brendan
 
Chances are, according this articles and others, you were kept on a lower rate for longer then the agreement from your previous lender and you are moving up because of that. Cant justify why the rate is 6.05% but that is the rate they have chosen for now.

https://www.irishtimes.com/business...iced-by-mars-capital-to-have-rates-increased/

On the plus side if you were kept on the lower rate for longer then you were meant to be, then you prob saved alot of money. If you are up to date, go to a broker and remortgage at a lower rate if you can.
 
I am also on a 2.6% fixed rate with just over a year left. (Sold from KBC to pepper) at the time I knew nothing about vulture funds and non-bank management funds so just went with the flow, not knowing pepper didn’t offer fixed rates or statements or any much interaction at all really.
Looking back on it KBC did advise me to get a valuation on my property and avail of a low fixed rate based on my LTV of 46%.
Im sure they knew difficulties I’d face with pepper in the future, and tryed to soften the blow with a parting fixed rate….so far I can’t switch to any other lender….it’s going to be a right mess when this fixed rate runs out.
Any increase in interest rates is going to mean something else may not get paid…& I’ll run the risk of going into arrears for the first time ever. And if it jumps to 6% how much longer until it gets bumped up to 8% or 9%, I don’t see any alternate ending to this other than insolvency TBH.
 
REDRUNNER said:
I don’t see any alternate ending to this other than insolvency TBH.
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If it's any consolation, as long as you keep making any reasonable repayments (if push comes to shove not necessarily the full amount due) and engage with the lender as necessary, they are never going to get a repossession under the current system that such matters are dealt with.
 
ClubMan said:
If it's any consolation, as long as you keep making any reasonable repayments (if push comes to shove not necessarily the full amount due) and engage with the lender as necessary, they are never going to get a repossession under the current system that such matters are dealt with.
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Is it worth the gamble of PIA , after all if the rate is jacked up from 2.6% to 6 and then 8 and you look for an accommodation then you Credit Rating on the CCR is shot for 5 years , if you go all out for insolvency you might just get lucky if you have a good PIA in your corner .
 
CorkHome2022 said:
Is it worth the gamble of PIA , after all if the rate is jacked up from 2.6% to 6 and then 8 and you look for an accommodation then you Credit Rating on the CCR is shot for 5 years , if you go all out for insolvency you might just get lucky if you have a good PIA in your corner .
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Pay what I can “ let’s say it’s €200 short of the new rate” my credit rate will be shot and all the time the principal will be rising on the mortgage….effectively going backwards in home ownership….apply for insolvency and yes my credit rating is also shot, but to be clear…a clean credit is no good to me at present, I can’t switch my mortgage anyway because the criteria is far too high to allow me to switch. And I suspect that if a bank or CU knows you are with pepper or similar they are turned off accommodating a switching straight away. Coming off a low fixed rate it’s not that I’m not willing to pay more but a jump of 6% would almost double my current payment. Surly a PIA would be more favourable than falling short of the new amount. What are the pitfalls of a PIA in this situation?
 
REDRUNNER said:
Surly a PIA would be more favourable than falling short of the new amount. What are the pitfalls of a PIA in this situation?
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It very much depends on the applicant's overall situation. You might want to familiarise yourself with the PIA process and maybe talk to a PIP to sound them out to see if it might be a suitable option for your case?

Personal Insolvency Arrangement - Back on Track

A PIA is a formal agreement with all your creditors that will write off some of your unsecured debt and restructure any remaining secured debt.
backontrack.ie backontrack.ie

Personal Insolvency Arrangements

People with secured debts who cannot pay their debts can apply for a Personal Insolvency Arrangement.
www.citizensinformation.ie www.citizensinformation.ie

Personal Insolvency Arrangement (PIA)

www.mabs.ie www.mabs.ie
 
Just to add you don't necessarily get a Fixed Rate in a PIA. There are multiple solutions available and just because you want one does not mean you will get one. It depends on your circumstances and your ability to service the mortgage. For example the mortgage might be reddeemed at age 60 by pushing out to 67 it might be affordable.
 
Raging Bull said:
Just to add you don't necessarily get a Fixed Rate in a PIA. There are multiple solutions available and just because you want one does not mean you will get one. It depends on your circumstances and your ability to service the mortgage. For example the mortgage might be reddeemed at age 60 by pushing out to 67 it might be affordable.
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It’s already pushed out to 70, thank you for the useful information…I’m hopefully only going to have to go down that road of a PIA if pepper won’t offer an affordable interest rate for my circumstances. If we get hit with a 9% interest rate then my salary will barely cover the mortgage and diesel to get to work each month…food/Heat/ESB/car running costs, etc will not get paid. Surely they would take a realistic approach and opt for a continuation of the current payment or even a small increase.
 
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