FAQs

Tracker Mortgages

What is a Tracker Mortgage?

A tracker mortgage is a type of mortgage where the interest rate charged on the Loan tracks that of another publicly available rate, typically the interest rate set by the European Central Bank.

I have a tracker mortgage with Pepper, what does this rate change mean for my tracker mortgage?

A tracker mortgage “tracks” the ECB interest rate, which means the interest rate on your loan moves in line with the ECB base rate. The ECB Interest rate announcement on 27 October will result in an increase to your interest rate.

When will the rate change announced by the ECB on 27 October 2022 take effect on my Loan account?

Pepper will be writing to all customers impacted shortly to provide them with information on the ECB Base Rate increase of 0.75% and what it will mean for them. For more information on the ECB Base Rate increase please refer to https://www.ecb.europa.eu/

How much will my repayments increase by?

Pepper will be writing to all customers impacted shortly, this interest rate change notification letter will include the effect of the ECB Base Rate increase (0.75%) on your current interest rate and when the increase will take effect on your account. You will receive further correspondence from Pepper when the interest rate increase is applied to your account notifying you of the effect of the interest rate increase on your monthly Loan repayments and when they will change. For guidance, please see below table outlining the indicative increase on a per €50,000 borrowed.

Outstanding Balance Monthly NMI Increase*
€50,000.00 €30.82
€150,00.00 €92.47
€250,000.00 €154.11
€300,000.00 €184.93
€350,000.00 €215.75

*Note: These amounts are for indicative purposes only, interest rate change notification letters will issue to all customers impacted with information on the actual new monthly Loan repayment amounts and when they will take effect.

Will there be further interest rate increases on my Loan?

It is likely that there will be further interest rate increases in line with the European Central Bank (ECB) interest rate review. However, we will notify you of any such further interest rate increases following an ECB announcement.

What dates did the ECB rates increase, what is the effective date, and what was the % rate increase?

ECB Announcement

Rate Change

ECB Effective Date

ECB Base Rate

21-Jul-2022

+0.50%

27-Jul-2022

0.50%

08-Sep-2022

+0.75%

14-Sep-2022

1.25%

27-Oct-2022

+0.75%

02-Nov-2022

2.00%

 

Further information is available at the below ECB link: https://www.ecb.europa.eu/press/govcdec/mopo/html/index.en.html

Standard Variable Rate Mortgages

What is a Standard Variable Rate?

Standard Variable Rates are subject to change, meaning that the interest rate can go up or down subject to a variety of factors determined by your Lender. It isn’t specifically linked to the European Central Bank’s ECB Base Rate however Lenders often change Standard Variable Rates when the ECB rate goes up or down. This means that when the ECB Base rate rises or falls your Lender can either raise or reduce your current interest rate accordingly.

Why is my Standard Variable Rate increasing?

When changing Standard Variable Rates, we consider a range of factors as set out in our Standard Variable Interest Rate Policy statement. Changes to any of these factors can result in changes to Standard Variable Rates. Your Standard Variable Rate may increase as a result of the current market conditions including the recent increases applied by the European Central Bank to the main refinancing operations rate (ECB base rate) to address high inflation. You can find out more information on the factors we consider when making changes to Standard Variable Rates here

I have a Standard Variable Rate mortgage with Pepper, what does this interest rate change mean for my Loan?

If any changes are to be made to your Standard Variable Rate, Pepper will write to you in advance, providing 30 days’ notice of any interest rate change. Notification letters relating to interest rate changes will detail the reason for the change and the impact of the change on your Loan repayments.

Who makes decisions in relation to my mortgage?

Pepper as your Lender makes the decisions in relation to your mortgage including decisions relating to changes to variable interest rates. Pepper complies with the Central Bank’s laws and regulations which provide protections to customers.

Who is the beneficial owner of my mortgage?

The beneficial owner purchased your mortgage as part of a Loan portfolio sale from your previous Loan owner. Pepper as your Lender, services your mortgage on behalf of the beneficial owner. Pepper is regulated by the Central Bank of Ireland.

General

How can I find out how much my new repayment will be after the rate on my account increases?

You will receive correspondence from Pepper when the interest rate increase is applied to your account. This letter will notify you of the new monthly repayment amount, after the interest rate increase and the date that the new payment will take effect from.

Do I need to change my direct debit payment for the increased monthly payment? 

No, if you pay your loan by direct debit, the new loan repayment amount will be automatically taken when your loan repayment changes.

I currently make overpayments to my loan by a fixed Direct Debit amount, what do I need to do?

Your existing overpayment will remain unchanged, however, if you wish to make further additional payments or if the increase will be more than the existing overpayment amount, you should contact us on the contact details provided and we will arrange for the overpayment amount to be changed. 

I pay by standing order/ cheque, Bank Transfer, Debit Card what do I need to do?

You will need to make the necessary arrangements to amend your payment amount when you receive the interest rate change notification letter.

Will there be further increases on my loan?

For customers impacted, it is likely that there will be further increases in line with the European Central Bank interest rate review.  However, we will contact impacted customers to notify of any such further interest rate increases following an ECB announcement. 

My loan is repaid in full and I have received a letter notifying me of an interest rate increase.

If you have repaid your loan in full, you should disregard this letter as the ECB interest rate change will not Impact your loan.

Can I fix my interest rate? 

No, Pepper do not offer any new interest rate products - Pepper are presently not providing any residential lending in the Irish market, therefore we are not in a position to offer a change of product.

We encourage you to look at your mortgage options regularly because a different product from another lender may lead to savings for you. The Competition and Consumer Protection Commission’s website (www.ccpc.ie) provides information relating to switching lenders or changing mortgage type.


I have an agreed Alternative Repayment Arrangement with Pepper, how does this rate increase affect the arrangement? 

The terms of any agreed alternative repayment arrangement (ARA) will remain in effect however the interest rate on your loan will increase in line with the ECB / Standard Variablerate change.   If you are making reduced payments as part of the ARA your loan repayments will remain the same until the end of the reduced payment period (at which time the new repayment amount will be notified to you at least 30 days before the ARA ends).  If you are not making reduced payments, your loan repayment will change following the interest rate increase.  

I have an agreed Personal Insolvency Arrangement with Pepper, how does this rate increase affect the arrangement? 

If you are currently in a Personal Insolvency Arrangement (PIA), your expected payment as per the agreed arrangement will remain unchanged.  However, this interest rate change will be applied to your loan account and in the event your PIA comes to an end or is terminated, your loan repayment amount will be adjusted accordingly.  We will contact you in advance of the arrangement coming to an end to inform you of any revised loan repayment amount that will come into effect after the PIA ends. 

I have a standard variable/ variable rate mortgage with Pepper, what does this rate change mean for my mortgage.

If any changes are to be made to your standard variable interest rate, Pepper will write to you in advance, providing 30 days’ notice of any interest rate change.  Notifications relating to interest rate changes will detail the reason for the change and the impact of the change on your loan repayments. 

I am currently on a fixed rate which will move to an interest rate tracking ECB at the end of the fixed rate period, what does this rate change mean for me

The rate increase will not impact your loan until the end of your fixed rate period, at which time you will move onto the prevailing ECB interest rate.  You will receive advance notification before your fixed rate is due to expire to advise you of what the new rate will be and the impact of the change on your loan.

I have a Price Promise product, will my rate/payments increase?

Price Promise is a variable rate mortgage, that will never be more than 1.50% over the published ECB interest rate.  

When changing variable interest rate products, Pepper consider a number of factors including the mortgage terms and conditions and movements to the ECB interest rate.  Pepper will write to you in advance, providing 30 days’ notice of any interest rate change.  Notifications relating to interest rate changes will detail the reason for the change and the impact of the change on your loan repayments.

If you are experiencing financial difficulties

Your financial situation may have changed in recent times, if you are experiencing financial difficulties, please contact our Arrears Support Unit on 0818 818 181.

Click here for further information on supports provided by Pepper for customers experiencing financial difficulties

Contact Pepper:

If you have any further queries in relation to Interest Rate Changes on your Residential Mortgage, please contact Pepper Customer Support on the contact details provided below (where possible, please quote Loan reference number):

Interest rate queries helpline: 0818 828 828

Pepper Asset Servicing, PO BOX 4310, Shannon, Co. Clare

If you have any further queries in relation to Interest Rate Changes on your Commercial Loan, please contact Pepper Customer Support on the contact details provided below (where possible, please quote Loan reference number):

Interest rate queries helpline: 0818 828 728

CRE Primary Servicing, PO BOX 697, Shannon, Co. Clare