The credit servicing firm Pepper Finance is developing a reduced fixed-rate “restructuring solution” for so-called mortgage prisoners who are unable to manage repayments following recent interest rate increases.
The company, which manages €30 billion in mortgages in its Irish operation, will offer the option only to Pepper customers with deeply distressed mortgages who “genuinely cannot pay” and cannot refinance their loans, according to a spokesman.
The cut-rate alternative payment agreement will apply to only a small portion of existing loans serviced by Pepper and will not be made available as a remortgage product for borrowers merely seeking cheaper repayments.
Although limited in scope, the new solution offers some hope that borrowers stuck on rates as high as 9 per cent may have options if they
© Times Media Limited 2023.