‘Warehoused Mortgages’ is set to be the next controversy in Ireland. Are you prepared?
It has recently been reported in the media that some €1.5bn worth of so-called “ware-house” mortgages will be the next negative property issue to sweep through the length and breadth of Ireland. A “ware-house” mortgage has been described as such as it is a mortgage where some regular payments are agreed and the rest of the sum is parked to the end of the term.
These types of mortgages were popular following the financial crash of 2008 to give struggling homeowners some breathing space with regards to mortgage repayments. However, it is now very clear to see that this method was merely just kicking the mortgage problem down the road. The fear is that thousands of home-owners have no plan in place for when their repayment arrangement comes to an end and they are then left with a lump-sum payment that is required at the end of this agreed term.
Therein lies the problem. Many Financial Advisors fear firstly that that this could have major repercussions for many households with many being forced to trade down their property and move to a smaller home. Secondly, there will be additional pressure on those with a “ware-house” mortgage as most of these arrangements have three-year reviews on them and therefore they would currently now be in play to Private Equity Firms. As the business model of many Private Equity Firms is not a long-term one, they will either seek to agree a restructure of the loan with a homeowner or else they may well potentially seek to repossess the property secured against the loan.
What should I do?
Firstly, you need to read over and understand your mortgage paperwork to determine and understand the agreement that you have made with your mortgage lender. Knowing what product you have and when your current mortgage deal ends is critical to having a workable plan and solution in place to deal with any impending lump-sums at the end of your term.
By acting immediately, this will enable you to plan ahead for the future safe in the knowledge that you will not face an end of mortgage term nightmare which could result in you losing your home. This is not an attempt to scare you but rather an attempt to give you the push that you might need to prevent this potential nightmare from occurring.
ASK FOR HELP - Try not to wait any longer, if you have a financial issue, or are concerned about any of the matters mentioned in this piece. Act today, not tomorrow!
What we can do to help?
Since 2010, GDP Equity Experts have helped hundreds of families deal with debt related issues and in particular property debt related issues. We would be very concerned at this point as we have met many people right across the UK and Ireland, who have let this problem worsen by simply ignoring it for too long.
Therefore, our aim is to educate individuals, households and businesses into acting immediately with regards to any property debt related matter and to take advice in this regard from a regulated team of debt advisors to plan for the future.
GDP Equity Experts take pride in our first-class advice and assistance that we offer to our clients. We will work closely with you from the very start of the process as we know what is expected and how to get you to where you want to go.
It is quite simple; we WANT to hear from you today because we WANT to help you today.
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