Split mortgage pepper

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maddison1

Registered User
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Hi, I know theres been a few with the same issue here and hoping someone could help. I have a mortgage sold by TSB to pepper. 60 is in the warehouse and we are paying off the amount of 75 thousand. They did a review and said on their figures we could start to pay in full.
I'm not sure because even though our finances have improved, my job is not secure and 2 of our children are in secondary and hopefully will be going to college in the next couple of years so our outgoings could be way more.
Our house isn't in negative equity now. We may want to to move in about 5 years to another area. We have 20 years left on the mortgage and our payments would go up by about 100 a week . My husband thinks we should stay with the split and save the money to pay off the 60 after the 20 years. I dont want to be in the position where we cant move. I would appreciate some advice if anyone can help.
 
Do you have any savings or other borrowing? If so, how much?


It is not Ptsb’s or Pepper’s job to finance your kid’s education. Nor is it their job to give you a discount in case you lose your job.


So you should resume full mortgage payments as you can afford them now.


Your credit record will be impaired while you have a split mortgage. The impairment lasts for 5 years from when the split ends. No lender will touch you if you have a split. Although your record will be impaired another lender may give you a mortgage before the 5 years are up if you have acted responsibly.


However if you are struggling with a 135k mortgage now is it realistic that you will ever be able to afford a bigger mortgage in the future? If not, then your credit record might be irrelevant. Even if you don’t need a bigger mortgage to move, you will still find it hard to get another mortgage.

With 60k in the warehouse @ 4% interest you are saving 2400 a year. The 100 a week includes capital.

If you are on a tracker of 1% the split is saving you only 600 a year.

Brendan
 
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