Mortgage services company Pepper, which works on behalf of Vulture Funds, said it will offer fixed mortgage repayments to customers unable to absorb multiple rate hikes. Loan servicers generally do not offer fixed interest rates, but offer a large number of borrowers with high-priced variables.
Epper also said it will lower interest rates for hard-pressed customers and is setting up a new dedicated support unit to help customers hit hard by rate hikes Irish Independent have learned.
Pepper oversees around 60,000 mortgages that are ultimately owned by vulture funds.
The news comes after fears were raised of a massive spike in arrears along the way due to huge rate hikes on mortgages owned by vulture funds.
Many vulture fund rates were high before the European Central Bank (ECB) began raising lending rates, and are now up to 6.5 to 7 percent – with more potential rises along the way.
Mortgage holders served by companies like Pepper and Start often can’t switch because they are or were in arrears.
Others have split mortgages – where part of the loan is set aside with later payments for that tranche. Some lenders will not accept them when trying to switch.
Now, Pepper has said its solutions for customers unable to make mortgage payments will include reduced interest rates and fixed reduced monthly repayments.
“These solutions include fixed reduced monthly payments, interest-only payments, term extensions, arrears capitalization, interest discounts, and other options.
“Although Pepper does not offer a fixed rate mortgage product, we have the flexibility to implement interest rebate solutions for both short and longer periods based on affordability and an assessment of the client’s individual circumstances,” it said.
And it said it would offer tailored solutions for those with split mortgages. She sets up a hotline for affected customers.
A spokesman said: “We recognize this is a challenging time for many people and our team stands ready to help any customer who is concerned about their ability to pay with a wide range of solutions that we can offer.” adapt to their individual situation. ”
However, many have complained to this publication that when they contact Pepper, they receive no response.
Pepper said it is planning what it calls a “proactive outreach program” for those its team has already identified as the most vulnerable customers and will be contacting them to offer advice and support.
The loan servicer said it will offer support and find solutions for tracker and variable rate customers affected by higher mortgage rates and rising costs of living.
Pepper said switching to a different lender is a viable solution for many customers and will work with customers who request it. Pepper also said it doesn’t get any commercial benefit from the rate hike, which is passed on directly.
https://www.independent.ie/business/personal-finance/property-mortgages/company-operating-on-behalf-of-vulture-funds-to-offer-fixed-rate-mortgages-to-under-pressure-borrowers-42226221.html Company working on behalf of Vulture Funds to provide fixed rate mortgages to distressed borrowers