My BoI mortgages sold to a vulture fund. Should I be worried?

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moneymakeover

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I heard today my boi tracker mortgages are being sold to Mars capital.

Tracker home loan to 2035
Tracker investment loan to 2035
Tracker Investment loan interest only to 2045

Is there anything to worry about with this?
They say the terms and conditions will continue.
If i continue to make payments on time I'll be okay?
 
They cannot take your tracker from you.

But you will lose out in two ways.

1) Mars will be far more aggressive in seeking to review your split mortgage.
2) Mars do not offer alternative rates e.g. fix rates so at the moment, you are paying 5%. That is ok value for the investment properties but you could get a lower fix on your home loan.

Brendan
 
Brendan Burgess said:
They cannot take your tracker from you.

But you will lose out in two ways.

1) Mars will be far more aggressive in seeking to review your split mortgage.
2) Mars do not offer alternative rates e.g. fix rates so at the moment, you are paying 5%. That is ok value for the investment properties but you could get a lower fix on your home loan.

Brendan
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When you say review the split mortgage

It was agreed until 2045 : interest only

No mention of any review
 
Your post does not mention anything about a restructure or split. It does potentially change the nature of things.

A period of over 20yrs without a review is a very long period on an investment loan.

Before the loans transfer, you can ask BOI about the terms that apply on the split.
 
moneymakeover said:
No mention of any review
Click to expand...

That would be very unusual.

AIB issued splits without any review.

All the other lenders had a clause in their standard split mortgage saying that there could be a review at least every 3(?) years.

This is the term in the standard BoI mortgage, but you may have something different.

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Brendan
 
Ah, just reading your original "split" mortgage post.

It might not be a split mortgage in the normal use of the term.

They are still charging you full interest on the "split" part but just not capital repayments.

Therefore you are paying a very high interest rate on your mortgage and should look at disposing of the properties.

But you would need to read the split contract again, and post the details here so we can work out if the sale affects you or not.

Brendan
 
Brendan Burgess said:
Ah, just reading your original "split" mortgage post.

It might not be a split mortgage in the normal use of the term.

They are still charging you full interest on the "split" part but just not capital repayments.

Therefore you are paying a very high interest rate on your mortgage and should look at disposing of the properties.

But you would need to read the split contract again, and post the details here so we can work out if the sale affects you or not.

Brendan
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When you say very high, it's a tracker with ecb +1.1%

Ecb rate currently high but it might come down
 
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moneymakeover said:
When you say very high, it's a trackere cb +1.1%

Ecb rate currently high but it might come down
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It might, but it has been reported and commented on a lot, that the era of really low ECB interest rates is over. .
I am not an economist, and nobody can predict what will happen. As Brendan said, it would be prudent to sell the investment property.
 
Brendan Burgess said:
Therefore you are paying a very high interest rate on your mortgage and should look at disposing of the properties.
Click to expand...


Brendan Burgess said:
But you would need to read the split contract again, and post the details here so we can work out if the sale affects you or not.
Click to expand...

Just to be clear. He should look at or consider selling it. It might or might not be the right thing to do.

The mistake is not to consider it.

Brendan
 
Bennes said:
Does anyone know what the interest rate Mars is charging.
Click to expand...
They have many rates, depending on the contract.
You've commented on a thread about Tracker mortgages, where the rate is specified in the contract and not controlled by Mars.
 
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