Split mortgage

[Grey Grey]

I had a split mortgage with ptsb now sold to a vulture fund. I have a tracker. The warehoused portion is interest free. Can I start paying regular amounts off the warehoused portion to begin reducing it over the next 15 years? Otherwise I will owe €150,000.00 in 15 years and they might make me sell my house to pay it. I think?

 

[Introuble83]

Check the terms of the contract . There should be no issue in making lodgements However there may be an incentive to lodge a certain amount to receive an additional benefit.

 

[Grey Grey]

Check the terms of the contract . There should be no issue in making lodgements However there may be an incentive to lodge a certain amount to receive an additional benefit.

Thanks

 

[Brendan Burgess]

Hi Grey

Why would you clear a warehouse which is costing you nothing in terms of interest when you could set the payments against the active part of the warehouse which could be costing you as much as 4% a year?

So pay down the active part and you will clear that ahead of term. Then you can start clearing the warehouse.

However...
The ptsb split contains a clause whereby it is reviewed every three years. When the vulture fund sees that you can afford to pay more, they will probably change the split. They will move some or all of the warehouse to the active mortgage.

Brendan