Brendan Burgess
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Rates to rise for hundreds of vulture fund mortgages despite several ECB cuts
A retired couple in their 60s are among hundreds of mortgage prisoners who have been told they are facing a huge hike in the interest rate on their home loan.
Pepper Advantage, which services their mortgage on behalf of an unnamed vulture fund that owns it, wrote to the couple this week telling them their mortgage rate would go up by 0.95 of a percentage point from December.
Their variable interest rate will go from 6.5pc at the moment to 7.45pc next month. This means the annual repayments will rise by around €1,200.
The couple, who do not want to be named, are among 450 mortgage account holders with Pepper Advantage who have been told their repayments are rising next month.
Pepper Advantage cited “market conditions” in the letter sent to the couple explaining why their repayments were rising.
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Mortgage adviser Padraic Kissane said it made no sense to cite market conditions for the rate rise when the European Central Bank had already cut rates three times this year and was expected to reduce them again in December.