“We’ve never been in arrears, but now we have no right to set the rate or switch — we’re at the mercy of the vulture fund that bought our mortgage.”

Like many others whose mortgages have been sold to a trust, Lorraine and her husband Tom feel trapped and at the mercy of the vultures.

Her mortgage was sold by Permanent TSB “with assurances that we would be protected,” she said.

“I have a split mortgage and have never been in arrears. We have done everything we can to keep payments going on our family home with three young children.”

Lorraine (not her real name) said the family was offered a split mortgage when Tom’s income as a taxi driver halved during the financial crisis.

This resulted in part of the amount owed being put into storage to be paid later.

They honored the agreement and were shocked to learn that the loan had been sold to a fund and is now being serviced by Pepper Mortgages.

She insists and was informed by Permanent TSB before the sale that the mortgage was working.

Lorraine and her husband don’t want to give their real names because they’re a little ashamed of their predicament – something many of those in the same situation share.

That means they haven’t told family and friends about selling their mortgage to vultures.

The couple had a fixed rate with Permanent TSB, but when it expired they were given a variable rate with no option to a new fixed rate.

The interest rate they paid has increased from 3.7 percent when the fixed rate ended last December to a floating rate of 6.3 percent.

Monthly repayments have skyrocketed by €300 – €3,600 more per year.

And she expects more growth

The owners of their mortgages have repeatedly increased their rates by more than the ECB rate hikes.

“They relayed every ECB hike rate on my SVR [standard variable rate] Loan. These are crippling increases for any family.

“This wouldn’t be the case if I stayed with Permanent TSB,” she said.

“We cannot switch lenders as no one will take us and there is no option to find a solution with Pepper. We are at their mercy and captive.”

She is calling on the government to step in and ensure there is a solution for families like hers.

“This is a performance loan. I think they really want to put people in arrears with that kind of interest?

“You feel a little helpless and trapped, and someone needs to step in to protect us.”

She said she spoke to a broker about a switch and was told they wouldn’t be accepted for a switch because they have a split mortgage.

This is despite the fact that Lorraine and her husband both work full time and Tom now has a more secure job.

She has written to TDs asking them to consider allowing customers trapped with vulture funds to apply for local authority home loans.

“We now need the central bank and the government to deliver on their promise that our rights will be protected. I have no right to set or change the interest rate, so how does that protect us?” she said.

“These vulture funds are now fully disclosed for what they are. It’s another scandal and customers are paying the price.”

https://www.independent.ie/business/personal-finance/property-mortgages/we-were-never-in-arrears-but-now-we-have-no-rights-to-fix-rate-or-switch-were-at-the-mercy-of-the-vulture-fund-who-bought-our-mortgage-42209431.html “We’ve never been in arrears, but now we have no right to set the rate or switch — we’re at the mercy of the vulture fund that bought our mortgage.”

Fry Electronics Team

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