LadyMarmalade
New Member
- Messages
- 3
Would appreciate any advice on how best to deal with Pepper. Similar to another poster, PTSB sold our interest only mortgage to Pepper in 2020. We want to sell the investment property as it’s empty and is in disrepair. This was before the interest rates started going up and we’re now under huge pressure financially. I’ve set out required information below. How do we deal with the balance? Will Pepper write any of it off? Mortgage is €212,000, we have an offer of €150,000.
I fully appreciate we owe the money and I know we chanced our arm asking them to write off the balance so please go easy on me, it was worth asking. Thanks for your time.
Income details
Net monthly (i.e. after tax) Income self: €2,493.39 (was €2239.38 at time of completing SFS for Pepper last month, got pay rise last month). In full time employment.
Income history:
Net monthly income partner/spouse: nature of income. €2,502. Full time employment
Income history:
Amount of child benefit received (Should be €130 per child). None
Amount of Mortgage Interest Supplement received (MIS is the social welfare payment to unemployed people, don't confuse with TRS). Nil
Personal circumstances so we can calculate your reasonable living expenses
The Insolvency Service has published Guidelines for Reasonable Living Expenses based on the family size, whether or not you need a car for work, childcare costs and other exceptional circumstances. By filling in this information, we (or you ) can calculate what your reasonable monthly living expenses should be.
One adult family or two adult family – Two plus a 22 year old daughter working part time. Our SFS included our 25 year daughter too but she moved out very recently.
Do you need a car for work or do you use public transport? We both need cars
Number of children 0- 2 years old:
Number of 3 years old children:
Number of 4 - 11 years old:
Number of 12 - 18 years old:
Monthly childcare costs: Nil
Montly spend on special circumstances: e.g. exceptional healthcare costs
Home loan
Lender: PTSB
Amount outstanding: €92,468.95
Value of home: €380,000
Interest rate: specify whether tracker or SVR or fixed rate: 4.8% Tracker
Monthly repayment: €798.02
Amount in arrears - Nil
Summary of discussions and agreements with the bank.eg. None in relation to our home mortgage. See below for
Investment property - Delete if not applicable
Lender: Pepper (sold by PTSB – repayments started March 2021 with Pepper)
Amount outstanding: €212,000 interest only
Value of home: €150,000
Interest rate: 4.8%
Monthly repayment €850.00 (gone up from €145 since last September)
Amount in arrears: Nil
Monthly rent received: Nil – house empty and in disrepair
Credit Union
Amount of shares: €1500
Amount of loan outstanding €9,000 approx
Monthly repayment - €350
Term left – 3 years
Other loans and creditors - delete those which don't apply to you
Credit Card - amount outstanding - €300 approx
Credit Card - monthly amount you are paying €100
Other savings and investments: €1,300 savings
Do you expect any lump sums in the medium term future?
Redundancy, inheritances, injuries awards.
There will be an inheritance probably before end of mortgage terms in 2033 – around €120,000
How important is retaining the family home to you?
Which of the following best describes your situation?
We want to keep our family home.
We have the investment property on the market and have been offered €150,000 for it. It is in disrepair and we do not have the money to renovate or the wish (in our early/mid fifties) to rent again.
What is your preferred realistic outcome?
The house sold and some sort of deal done if possible on the balance.
We asked Pepper last year would they accept €150,000 and write off balance. (they had done this for someone else that we knew previously). At that time, repayments were only €145.00. They said no. They said to consider any proposals, they would need an SFS. We put the house on the market to see what would happen. The price had to be reduced six months later due to no offers. It got an offer of €150,000 recently. The increases in mortgage payments are putting a lot of pressure on us, we have gone from paying approx. €750 between the two mortgages to paying €1650. We want the investment property gone. Since the rates went up, we again approached Pepper with the offer on the house and asked if they would write off the balance. We sent a full SFS which showed our income basically matching our expenditure with nothing left over. We said we were on the cusp of going into arrears with the constant increase in rates. They said no. They offered no alternatives.
We approached the Credit Union recently to switch our family home mortgage so make some savings and add on the balance that would be due to Pepper (€60,000) after we sold the house. My plan was to clear whatever was left of that amount once I came into inheritance. Credit Union said no, they would only release equity for home renovations and would need proof work was done. They also said they couldn’t take the entire Pepper mortgage from us, allow us sell the house and pay them back them balance as they only deal with owner occupied properties.
I went to a financial advisor last year who negotiates with banks and he suggested getting our offer first, then asking the Credit Union for a small loan, say €15,000 and offer this plus the €150,000 to Pepper. However, my solicitor has said while he is not saying Pepper won’t negotiate, he thinks offering them €15,000 shows affordability of some sort and may make it more difficult to negotiate.
What do we do? There is only 13 years left on the two mortgages and we have only around that same amount of time left in work. The investment property will start to decrease in value shortly. Do we go into arrears to force Pepper to agree some sort of write down? Could I ask them to shelve the balance until 2036? Would interest continue to accrue? At the moment, we are paying €850.00 per month yet our mortgage is not reducing.
I do not want to go into arrears. Should we push Pepper further to agree some sort of write off or are we wasting our time? People are saying oh stop paying them and they'll talk to you then but that doesn't really solve the issue. The stress is huge at a time when we should be enjoying having a bit of spare cash now that our children are out of education!
Any advice would be greatly appreciated, thank you.
I fully appreciate we owe the money and I know we chanced our arm asking them to write off the balance so please go easy on me, it was worth asking. Thanks for your time.
Income details
Net monthly (i.e. after tax) Income self: €2,493.39 (was €2239.38 at time of completing SFS for Pepper last month, got pay rise last month). In full time employment.
Income history:
Net monthly income partner/spouse: nature of income. €2,502. Full time employment
Income history:
Amount of child benefit received (Should be €130 per child). None
Amount of Mortgage Interest Supplement received (MIS is the social welfare payment to unemployed people, don't confuse with TRS). Nil
Personal circumstances so we can calculate your reasonable living expenses
The Insolvency Service has published Guidelines for Reasonable Living Expenses based on the family size, whether or not you need a car for work, childcare costs and other exceptional circumstances. By filling in this information, we (or you ) can calculate what your reasonable monthly living expenses should be.
One adult family or two adult family – Two plus a 22 year old daughter working part time. Our SFS included our 25 year daughter too but she moved out very recently.
Do you need a car for work or do you use public transport? We both need cars
Number of children 0- 2 years old:
Number of 3 years old children:
Number of 4 - 11 years old:
Number of 12 - 18 years old:
Monthly childcare costs: Nil
Montly spend on special circumstances: e.g. exceptional healthcare costs
Home loan
Lender: PTSB
Amount outstanding: €92,468.95
Value of home: €380,000
Interest rate: specify whether tracker or SVR or fixed rate: 4.8% Tracker
Monthly repayment: €798.02
Amount in arrears - Nil
Summary of discussions and agreements with the bank.eg. None in relation to our home mortgage. See below for
Investment property - Delete if not applicable
Lender: Pepper (sold by PTSB – repayments started March 2021 with Pepper)
Amount outstanding: €212,000 interest only
Value of home: €150,000
Interest rate: 4.8%
Monthly repayment €850.00 (gone up from €145 since last September)
Amount in arrears: Nil
Monthly rent received: Nil – house empty and in disrepair
Credit Union
Amount of shares: €1500
Amount of loan outstanding €9,000 approx
Monthly repayment - €350
Term left – 3 years
Other loans and creditors - delete those which don't apply to you
Credit Card - amount outstanding - €300 approx
Credit Card - monthly amount you are paying €100
Other savings and investments: €1,300 savings
Do you expect any lump sums in the medium term future?
Redundancy, inheritances, injuries awards.
There will be an inheritance probably before end of mortgage terms in 2033 – around €120,000
How important is retaining the family home to you?
Which of the following best describes your situation?
We want to keep our family home.
We have the investment property on the market and have been offered €150,000 for it. It is in disrepair and we do not have the money to renovate or the wish (in our early/mid fifties) to rent again.
What is your preferred realistic outcome?
The house sold and some sort of deal done if possible on the balance.
We asked Pepper last year would they accept €150,000 and write off balance. (they had done this for someone else that we knew previously). At that time, repayments were only €145.00. They said no. They said to consider any proposals, they would need an SFS. We put the house on the market to see what would happen. The price had to be reduced six months later due to no offers. It got an offer of €150,000 recently. The increases in mortgage payments are putting a lot of pressure on us, we have gone from paying approx. €750 between the two mortgages to paying €1650. We want the investment property gone. Since the rates went up, we again approached Pepper with the offer on the house and asked if they would write off the balance. We sent a full SFS which showed our income basically matching our expenditure with nothing left over. We said we were on the cusp of going into arrears with the constant increase in rates. They said no. They offered no alternatives.
We approached the Credit Union recently to switch our family home mortgage so make some savings and add on the balance that would be due to Pepper (€60,000) after we sold the house. My plan was to clear whatever was left of that amount once I came into inheritance. Credit Union said no, they would only release equity for home renovations and would need proof work was done. They also said they couldn’t take the entire Pepper mortgage from us, allow us sell the house and pay them back them balance as they only deal with owner occupied properties.
I went to a financial advisor last year who negotiates with banks and he suggested getting our offer first, then asking the Credit Union for a small loan, say €15,000 and offer this plus the €150,000 to Pepper. However, my solicitor has said while he is not saying Pepper won’t negotiate, he thinks offering them €15,000 shows affordability of some sort and may make it more difficult to negotiate.
What do we do? There is only 13 years left on the two mortgages and we have only around that same amount of time left in work. The investment property will start to decrease in value shortly. Do we go into arrears to force Pepper to agree some sort of write down? Could I ask them to shelve the balance until 2036? Would interest continue to accrue? At the moment, we are paying €850.00 per month yet our mortgage is not reducing.
I do not want to go into arrears. Should we push Pepper further to agree some sort of write off or are we wasting our time? People are saying oh stop paying them and they'll talk to you then but that doesn't really solve the issue. The stress is huge at a time when we should be enjoying having a bit of spare cash now that our children are out of education!
Any advice would be greatly appreciated, thank you.
Last edited by a moderator: