Sole Trader: Switching from Pepper

D

daraclare

Registered User
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My friend is a sole trader with a mortgage with Pepper at 7.8%. The house is probably worth €400K+, and the mortgage is €130K.

Friend wants to switch to a lower interest rate, but can only work part-time at the moment, earning only €20K a year.

My friend is 47 with no dependents, but an adult son lives in the house and pays rent, and has another unrelated tenant paying rent as well.

Is there any advice on how to get a mortgage with a bank with a more reasonable interest rate? Is there any point in speaking / complaining to the Central Bank?
 
daraclare said:
Friend wants to switch to a lower interest rate, but can only work part-time at the moment, earning only €20K a year.
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Gross or net?
Does that include the following?
daraclare said:
My friend is 47 with no dependents, but an adult son lives in the house and pays rent, and has another unrelated tenant paying rent as well.
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If not then what is their total net income?
daraclare said:
Is there any point in speaking / complaining to the Central Bank?
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Vulture victims should get together in advance of the election

People who are paying 8% and 9% to vulture funds when they would be paying about half that if they had not been sold by their original lender should organise themselves in advance of the election. You should hold people like Paschal Donohoe accountable for telling you that you would not lose...
www.askaboutmoney.com
 
Income is €20k gross, plus rental income which is probably approx €500 a month from rent. Can the rent be used towards the income when trying to switch?

I've read the post about complaining to the CB and forwarded that to them, thanks.
 
If my friend could go full time, being a sole trader, full tax compliant, how long would they need to be showing a higher income for?
 
As far as I know lenders will usually ask for 2-3 years of accounts for a self-employed applicant so that's not likely to be a runner short term either.
And are there other factors - e.g. why is the mortgage with Pepper in the first place, was it restructured (e.g. split, extended), are there arrears, do they have an impaired credit record?
Probably all moot questions though given that it doesn't look like a mortgage application on the basis of recent income is a runner at all.
 
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No arrears as far as I know, remortgaged with Start mortgages, which sold the mortgage to Pepper. Looks like their only option might be to become a full-time PAYE employee for 6 months and double their income and try to switch then.
 
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