Warehoused portion of a split mortgage

[Danny Boy]

Hi,
I’m on a 50/50 split mortgage with KBC. The term is up to 70 yrs of age so I’ve a bit of time to go yet to get to that stage. My query is, in people’s opinion what will happen to the warehoused portion if I haven’t cleared all of it by the time I get to 70 or is that a complete myth at this stage as splits are only out there a few years.
Obviously if I win the lotto,come into money somehow or pop my clogs & the life policy pays out then there’s no issue but I don’t see myself getting a windfall from anywhere before then.
Any comments would be appreciated.

Danny.

 

[Brendan Burgess]

KBC review it every three years.

So, if your financial circumstances improve, they will move some of the loan from the warehouse to the active loan. And you will pay it off over the term of the loan.

If you have not cleared it by the age of 70, they will presumably enter into an agreement with you to pay it off from your income at that stage.

Brendan

 

[Danny Boy]

Thanks for the reply Brendan, I was hoping someone would tell me that they’ll write it off but I suppose it will be another 10 yrs or more before people with split mortgages hit that age & we’ll find out the definitive answer.

I’ve been on the split for a few years & the 3 year review was a letter in the post followed by a telephone call from them asking was my situation the same as when they made the offer.

Cheers
Danny

 

[Brendan Burgess]

I was hoping someone would tell me that they’ll write it off

Danny

When the term is up, you will have paid off the active mortgage.
The warehouse will have been greatly reduced by inflation.
Your home may well have increased due to house price inflation.

And you want a write off as well?

Brendan