Start has offered me a restructure which I have rejected

J

JD2021

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Just to Share what Start Mortgages offered me. I've been awarded Disability Allowance and with reduced earnings and €60k Mortgage Balance I thought I'd approach a long term solution as the 6.60% I'm now on, crippling.

Firstly I've 2 warehoused accounts, 2 Mortgage accounts, this occurred when PTSB restructed my Mortgage & Top up mortgage in 2014 & then sold it to Start in 2019.

Managed to Clear arrears, but they started to creep up with Interest Rates.

So the offer, which I've not accepted.

Restructure and give up warehoused parts (Currently No Interest, but mature 2034.

They'll offer 3% but it's not Fixed.

Extend more by 32 years or my 95th Birthday (I'm 57)

Pay €150 pm for 32 years

Still owe in excess of €45k when this deal Matures.

I agreed to feature in an Article last weekend, to help highlight issues with Vulture Funds

I've now counter offered with a, proposal to Clear Mortgage entirely (another story)
 

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RedOnion said:
I haven't had time to digest your case, but I just wanted to commend you on going public with this. It's not an easy thing to do, but hope it will help others in a similar situation.
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Thank you, I previously highlighted my case, I'm fortunate in having a small mortgage, others not so fortunate.

The Proposal put to me by Start may suit some but at an astonishing long term cost.
 
JD2021 said:
Just to Share what Start Mortgages offered me. I've been awarded Disability Allowance and with reduced earnings and €60k Mortgage Balance I thought I'd approach a long term solution as the 6.60% I'm now on, crippling.

Firstly I've 2 warehoused accounts, 2 Mortgage accounts, this occurred when PTSB restructed my Mortgage & Top up mortgage in 2014 & then sold it to Start in 2019.

Managed to Clear arrears, but they started to creep up with Interest Rates.

So the offer, which I've not accepted.

Restructure and give up warehoused parts (Currently No Interest, but mature 2034.

They'll offer 3% but it's not Fixed.

Extend more by 32 years or my 95th Birthday (I'm 57)

Pay €150 pm for 32 years

Still owe in excess of €45k when this deal Matures.

I agreed to feature in an Article last weekend, to help highlight issues with Vulture Funds

I've now counter offered with a, proposal to Clear Mortgage entirely (another story)
Click to expand...
For someone in positive equity it's not the worst deal ever I have seen.

I am an PIP and if you can secure your accommodation long-term for 150 pm there's a lot of positives in that offer
 
Raging Bull said:
For someone in positive equity it's not the worst deal ever I have seen.

I am an PIP and if you can secure your accommodation long-term for 150 pm there's a lot of positives in that offer
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The two issues that concerned MABS & others where the Interest was not fixed, nor the Monthly payments & the large Amount still owing after 32 years

The only Positive, maybe was staying in my home, assuming the interest rate didn't increase.
 
JD2021 said:
The two issues that concerned MABS & others where the Interest was not fixed, nor the Monthly payments & the large Amount still owing after 32 years

The only Positive, maybe was staying in my home, assuming the interest rate didn't increase.
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Sorry to be the bearer of bad news but the statistical likelihood for you being alive at 90 is about 14%.

The solution is not perfect but it's a roof over your head. There are plenty of PIAs being formulated like what you were offered.
 
JD2021 said:
The Proposal put to me by Start may suit some but at an astonishing long term cost.
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Hi Joe

It's not an astonishing long term cost at all. And it's better to look at the annual cost.

If I rent a car for three days it will cost me €300. If I rent it for 30 years, it will cost me thousands. But it's not an astonishing long term cost. I have the use of the car for 30 years.

You have a total mortgage of €60k. You are being charged 3% which is €1,800 interest a year. or €150 a month.
That is not expensive for renting that amount of money.

Don't worry about paying off the capital. It is nice to be mortgage-free when you retire, but so what if you are not?

It seems to me that Start has understood your position and has offered you a great deal.

Sure the 3% is a bit uncertain and it would be better if they fixed it for, say 5 years. But 3% is a really great rate. I doubt that they are offering it to you with an intention to increase it to 6% in a few days. They can do that now anyway.

Grab it before they withdraw it.

You have offered them some alternative. I hope that the alternative is better for you. I suspect that you are getting some outside money to clear the mortgage. If you make a derisory offer, then I doubt that they would accept it.

Brendan
 
Brendan Burgess said:
Hi Joe

It's not an astonishing long term cost at all. And it's better to look at the annual cost.

If I rent a car for three days it will cost me €300. If I rent it for 30 years, it will cost me thousands. But it's not an astonishing long term cost. I have the use of the car for 30 years.

You have a total mortgage of €60k. You are being charged 3% which is €1,800 interest a year. or €150 a month.
That is not expensive for renting that amount of money.

Don't worry about paying off the capital. It is nice to be mortgage-free when you retire, but so what if you are not?

It seems to me that Start has understood your position and has offered you a great deal.

Sure the 3% is a bit uncertain and it would be better if they fixed it for, say 5 years. But 3% is a really great rate. I doubt that they are offering it to you with an intention to increase it to 6% in a few days. They can do that now anyway.

Grab it before they withdraw it.

You have offered them some alternative. I hope that the alternative is better for you. I suspect that you are getting some outside money to clear the mortgage. If you make a derisory offer, then I doubt that they would accept it.

Brendan
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Morning Brendan, hope all is well, you'll recall that advice you gave and yes that's what is being put to Start, Essentially clear the Entire Balance with a small discount. I'm aware they'll likely not offer any discount due to potential Contagion but worth a Try.

If they decline the offer, Non warehoused amounts will be cleared with Warehoused dealt at a later stage, they don't mature till 2034.

Just thought I'd share what Start are offering. I do see some merit in what they proposed, it was the uncertainty about the interest rates & agreed monthly repayment that was my main concern plus the likely hood I'd owe more at the end of 32 years than I do now.

I'll keep you posted, hope you saw the Article.
 
JD2021 said:
Non warehoused amounts will be cleared with Warehoused dealt at a later stage, they don't mature till 2034.
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JD

This was a ptsb mortgage.

This gives the lender the right to review the split at any time and, in fact, they are required to review it every three years.

So if you clear the active mortgage, they will move the warehouse into the active.

Brendan
 
Raging Bull said:
Sorry to be the bearer of bad news but the statistical likelihood for you being alive at 90 is about 14%.

The solution is not perfect but it's a roof over your head. There are plenty of PIAs being formulated like what you were offered.
Click to expand...
I don't disagree this arrangement had some merits but I'm reminded of a recent Circit Court Ruling in Tullamore whereby a couple got a 2.5% fixed interest rate and mortgage extended.

My case never went legal & perhaps my mortgage smaller. It was telling the Vulture Fund, Pepper did not appeal that case.

I've long held the view that Vulture Funds raising interest rates inexplicable, given they were already charging very high rates on mortgages they purchased at massive discounts.

Had start offered to at least fix the 3% offered, it might have been worth considering. It's also intriguing they were actually prepared to lower the interest currently being charged by 3.60%

It also seemed, Start were determined for me to give up the warehoused arrangement, currently not subject to interest albeit maturing in 2034

I won't go into the detail but I've secured a way of clearing the mortgage entirely & have put a proposal to Start.

I'll update on what the outcome is.
 
Brendan Burgess said:
JD

This was a ptsb mortgage.

This gives the lender the right to review the split at any time and, in fact, they are required to review it every three years.

So if you clear the active mortgage, they will move the warehouse into the active.

Brendan
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That's something I wasn't aware of Brendan, thank you. It was my understanding the warehoused agrreements could not be changed as Start inherited whatever agreement was in place.

They've not once reviewed the PTSB arrangement in the near 5 years they have my mortgage
 
Hi JD

In June of last year, I told you that the split was reviewable.

What will happen to the warehouse on retirement?

Moved from the thread about Vulture Funds not offering fixed rate options I'm glad this issue got some attention and it's real concern. Whilst some people had mortgages in arrears sold to vulture/investment funds , many were not in arrears. Obviously those with no arrears or historical...
www.askaboutmoney.com

Brendan
 
JD2021 said:
Just to Share what Start Mortgages offered me. I've been awarded Disability Allowance and with reduced earnings and €60k Mortgage Balance I thought I'd approach a long term solution as the 6.60% I'm now on, crippling.

Firstly I've 2 warehoused accounts, 2 Mortgage accounts, this occurred when PTSB restructed my Mortgage & Top up mortgage in 2014 & then sold it to Start in 2019.

Managed to Clear arrears, but they started to creep up with Interest Rates.

So the offer, which I've not accepted.

Restructure and give up warehoused parts (Currently No Interest, but mature 2034.

They'll offer 3% but it's not Fixed.

Extend more by 32 years or my 95th Birthday (I'm 57)

Pay €150 pm for 32 years

Still owe in excess of €45k when this deal Matures.

I agreed to feature in an Article last weekend, to help highlight issues with Vulture Funds

I've now counter offered with a, proposal to Clear Mortgage entirely (another story)
Click to expand...
Why would you turn down an offer to pay €150 per month. That's about €35 a week. That's sounds great to me. What don't you like about it?

If your proposal to clear the mortgage means you'll owe someone else money is that wise? Fair enough if a relative will loan you that, but I'd want it in writing your arrangement.
 
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Bronte said:
Why would you turn down an offer to pay €150 per month. That's about €35 a week. That's sounds great to me. What don't you like about it?

If you proposal to clear the mortgage means you'll owe someone else money is that wise? Fair enough if a relative will loan you that, but I'd want it in writing your arrangement.
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As explained the Repayment nor the lower interest fixed, plus owing near what I owe now after 32 years is not appealing.

I am fortunate in having an arrangement in place to clear the Mortgage, it's complicated but absolutely an agreement in place
 
JD2021 said:
I am fortunate in having an arrangement in place to clear the Mortgage, it's complicated but absolutely an agreement in place
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Complicated doesn't sound good. Fair enough if you don't want to divulge. I have loaned money to relatives. And will be doing so again. In my case one 'forgot' what I'd agreed, but their partner did not. They came to their senses and paid me back, late, but I was ok with that, it stung me that my 'agreement' was not clear to them. So whatever you decide to do you must put it in writing.

You could come back on here with a different username and ask the question about the arrangement you are doing. For privacy reasons. To get advice on it. There are many threads on it.

I don't underestimate the stress this mortgage has put you under. So please don't think that. But there are many people out there that always say the banks are bad or wrong. Sometimes though they do come to good arrangements. Don't lose sight of that.

I have not one good word to say about the main banks abdicated messes like yours to the vultures. So they don't get bad publicity. But I also understand vulture funds need to exist. And the government should have applied pressure in relation to these transfers, especially since the banks were in hock to the taxpayers.
 
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Bronte said:
Complicated doesn't sound good. Fair enough if you don't want to divulge. I have loaned money to relatives. And will be doing so again. In my case one 'forgot' what I'd agreed, but their partner did not. They came to their senses and paid me back, late, but I was ok with that, it strung me that my 'agreement' was not clear to them. So whatever you decide to do you must put it in writing.

You could come back on here with a different username and ask the question about the arrangement you are doing. For privacy reasons. To get advice on it. There are many threads on it.

I don't underestimate the stress this mortgage has put you under. So please don't think that. But there are many people out there that always say the banks are bad or wrong. Sometimes though they do come to good arrangements. Don't lose sight of that.

I have not one good word to say about the main banks abdicated messes like yours to the vultures. So they don't get bad publicity. But I also understand vulture funds need to exist. And the government should have applied pressure in relation to these transfers, especially since the banks were in hock to the taxpayers.
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I've been on AAM since 2021, why on earth would I come back with a different user name, I've actually shared my story on here over the past 2 years.

Complicated as in my back story complicated, having been brought up in residential care, I have siblings, I've never met but a Gaurdian & his son who are helping, as non blood relatives the arrangement complicated but a written agreement drawn up
 
JD2021 said:
I've been on AAM since 2021, why on earth would I come back with a different user name, I've actually shared my story on here over the past 2 years.

Complicated as in my back story complicated, having been brought up in residential care, I have siblings, I've never met but a Gaurdian & his son who are helping, as non blood relatives the arrangement complicated but a written agreement drawn up
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I only suggested it as you don't want to divulge it and you obviously don't want Start to know about it. One cannot judge if it's a good idea if you don't give us any info.

But that's good it is on paper.

And we have no idea if it's a good idea or not.
 
Bronte said:
I only suggested it as you don't want to divulge it and you obviously don't want Start to know about it. One cannot judge if it's a good idea if you don't give us any info.

But that's good it is on paper.

And we have no idea if it's a good idea or not.
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It was not my intention to be evasive. Essentially my Gaurdian has offered to clear the mortgage. As he and his son are not blood relatives (his son going to inherit my home eventually) we had to draw up a loan agreement with a nominal interest rate applied. This I insisted on.

Hope this clarifies the complicated bit. I have made it clear to start where the Funds will be coming from, they are aware of my medical challenges also.
 
Well that sounds like a good plan. (Perhaps a bit of tax planning might be in order to avoid inheritance tax.). It's nice you have kind people to help you.
 
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