Understanding your interest rates

On the 5th June 2025, the European Central Bank (ECB) announced a 0.25% decrease in the base rate (effective 11th June 2025). If you have a tracker mortgage, the 0.25% change will be applied to your mortgage interest rate in line with the terms and conditions of your loan agreement.

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 (ECB). This means the interest rate on your loan moves in line with the ECB base rate. If the ECB base rate increases or decreases, this will result in your interest rate increasing or decreasing by the same percentage.  

For more information on the ECB base rate change please refer to:  https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html 

The ECB’s mandate is to keep prices and inflation stable. To curb inflation across the Eurozone including Ireland, the ECB increased rates over the course of 2022 and 2023. As inflation stabilised in 2024, the ECB started to reduce interest rates from June 2024.

The impact of ECB interest rate changes has affected mortgage holders with loans linked to the ECB base rate by changing the amount they will have to pay back each month.

Pepper will write to all impacted customers to provide them with information on ECB base rate changes and what they will mean for them. For more information on the ECB base rate change please refer to: https://www.ecb.europa.eu/home/html/index.en.html

Pepper will write to all customers impacted. The letter will notify you of the interest rate change and will include the effect of the latest ECB base rate change on your mortgage interest rate and your monthly loan repayments and when the change will take effect on your account. You will receive further correspondence from Pepper confirming the interest rate change has been applied to your account and your monthly loan repayments.

For guidance, please see below a table outlining the indicative decrease on a per €50,000 borrowed based on the latest ECB base rate decrease of 0.25%.

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

The terms of any agreed alternative repayment arrangement (ARA) will remain in effect. However, the interest rate on your Loan may increase or decrease in line with the ECB base rate.

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. We will notify you at least 30 days before your ARA ends about your new repayment amount.

If you are not making reduced payments, your loan repayment will change following the interest rate increase or decrease. We are here to support you, so please contact us if you have any concerns about your ability to make repayments.

If you are currently in a Personal Insolvency Arrangement (PIA), your payment may stay as agreed. However, if the interest rate has not been fixed as part of the PIA and you have a mortgage that tracks the ECB base rate, the interest rate change will be applied to your loan account. If your PIA comes to an end or is terminated, your loan repayment amount and interest rate (where applicable) will be adjusted accordingly.

We will contact you before the arrangement comes to an end to let you know your revised loan repayment amount and interest rate (where applicable) once the PIA ends. We are here to support you, so please contact us if you have any concerns about your ability to make repayments.

Split Mortgages restructure your mortgage so a portion of your loan becomes a warehoused loan, typically accruing zero interest, while the remaining balance continues to accrue interest.

If the interest rate on the remaining balance of your Split Mortgage tracks the ECB base rate or is variable, we will notify you ahead of any changes to the Interest Rate. Your notification letter will let you know the reason for the change and its impact on your loan repayments.

Variable Interest 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 Variable Interest Rates when the ECB rate goes up or down. This means that when the ECB base rate rises or falls you may see your Variable Interest Rate either increase or decrease in the months following ECB base rate movements.

No, mortgages are on various interest rate products including Variable Interest Rates transferred to Pepper as part of loan portfolio sales from many different Lenders in Ireland.  These interest rate products were agreed by the original lender and vary by type and by Lender. 

Pepper as legal title holder manages interest rate decisions on behalf of the beneficial owner of the loans in relation to changes to variable interest rates. When making decisions on Variable Interest Rates, we consider a range of 6 factors as set out in our Variable Interest Rate Policy Statement. Changes to any of these factors can result in changes to Variable Interest Rates.

These factors include the mortgage funding costs (“cost of funds”) for the beneficial owner of the loan driven by wholesale interest rates.

If any changes are to be made to your Variable Interest Rate, Pepper will write to you in advance, providing advance 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.

If you have a mortgage and are at risk of financial difficulty, Pepper can offer a number of solutions tailored to your individual circumstances and affordability which may include a term extension, an interest rate discount or to fix the monthly payments for a specified period of time. If you are concerned about your ability to meet mortgage payments contact our team on 0818 828 828.

Pepper has not passed on more than the ECB Base rate increases announced between July 2022 and September 2023 and has passed on Variable Interest Rate changes in line with our Variable Interest Rate Policy

No, Pepper does not offer new residential mortgages in Ireland, including fixed rate options. We encourage you to regularly review your mortgage options, as another lender may have a better product available for you. For more information on switching lenders, please visit the Competition and Consumer Protection Commission’s website.

www.ccpc.ie/consumers/money/mortgages/switching-lenders-or-mortgage.

For customers experiencing financial difficulties and who may not be in a position to switch lender we offer one of the broadest ranges of temporary and longer-term forbearance solutions in the Irish market including interest only payments, term extensions, arrears capitalisations, interest rate discounts as well as several other options. As part of our forbearance solutions, we can offer fixed reduced monthly repayments and interest rate discounts, both for short term and extended periods.

For short term interest rate discounts, the discounted interest rate may also be fixed for a period of two years meaning your monthly repayment will not vary during this time.

The rate changes will not impact your loan while you are in a fixed rate. When your fixed rate expires your interest rate will move onto the prevailing ECB interest rate.  We will notify you 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 and your monthly repayment.

The rate change will not impact your loan while you are in a fixed rate. When your fixed rate expires your interest rate will move onto a Variable Interest Rate. We will notify you 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 and your monthly repayment.

Statements will be issued at least annually, however, you can call us on 0818 818 181 or write to us at the below address to request a statement at any time.

A copy (i.e. picture via camera phone or scanned copy as PDF) of two of the following to include your name and home address: 

• Utility bill (ESB; Gas; Phone - Landline; Waste)
• Bank statement
• Tax notice from the Revenue Commissioners
• Social Welfare document
• Motor tax document
• Home or motor insurance certificate or renewal notice OR

Certified proof of address documents is also accepted. In this instance, and only 1 certified proof of address is required. An original proof of address document via post will also be accepted. A certified copy must be certified by one of the following professionals:

• Garda Siochana / Police Officer
• Regulated financial or credit institution
• Practising solicitor / Notary Public
• Practising Chartered or Certified Public Accountant
• Justice of the Peace
• Commissioner for Oaths

You can update your email and phone number on the account summary screen in the MyPepper Portal,  you can register here.

If you have identified personal data, or any other data, that is incorrect through correspondence received or information provided by us in relation to you, we will amend it as soon as we are notified. You can notify us by calling us on 0818 818 181 or by writing to us at Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare.

If you wish to obtain a copy of your personal data and assuming you are the account holder, please:

• Make your request in writing
• Ensure that you and where applicable, any joint party making the request, authorise (i.e., sign the request).   
• If you place your request via telephone, we will respond in writing to acknowledge the request. However, we will not be in a position to process your request until such time as the documents required to verify your   identity, as outlined below, have been received.       
• To establish identification (ID) and to protect the security of your personal data, we require one of the following: 2 copies of your ID and that of each party to the Loan, who are to be included in this access request, e.g., 1 passport and 1 driving licence or other acceptable photographic ID.

OR

• 1 certified copy of your ID and that of each party to the Loan, who are to be included in this access request. This must be certified as a true and accurate copy by any of the following: solicitor, public representative, member of An Garda Siochana, or clergyman.
• Where one party on a joint account is making the request, we only require ID from that party and information relevant to that party only will be provided to them.
• If all parties on a joint account are making the request, all parties are required to provide
• their ID and information for all parties will be issued in the pack to each party.  

If you have received an annual statement for the previous calendar year, a breakdown of the yearly interest will be included on your statement.

If you are not in receipt of a statement, or the statement does not cover the period from January to December in the previous year, please contact us to request one which will outline the interest paid for that calendar year.  

Yes, when you change your home insurance details, you should provide us with a copy of the revised policy.

You should also advise your insurance provider that you have a mortgage with Pepper Advantage. They will note our interest on your policy and provide you with what is called a letter of Indemnity.

You should forward this letter to Pepper Advantage on receiving it to confirm that our interest has been noted on the policy.

As Pepper are a notified party to any insurance policy in the unfortunate event that a claim is made on the policy, any claim funds paid will be addressed to both the borrower and Pepper.

The claim cheque should be sent to Pepper Advantage along with the below supporting documentation:

• Proof of commencement of works (where applicable).
• Proof of costs incurred in the repair of any loss or damage to the property and its content.
• Before and after photos of the property at time of the accident (where applicable).
• Report carried out by the insurer and/or loss assessor. 
• Engineers report if there was structural damage to the property.

 For more information or to speak to someone regarding a home insurance claim please contact us on 0818 818 181.

The letter is prompted when Pepper receives cancellation notice from your previous insurer.

We require a copy of the new Home Insurance schedule with interest of Pepper noted.

Post to: Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare

The purpose of the PIA is to help people in serious arrears to find the best available solutions, with the help of professionals who have expert knowledge of mortgages, insolvency, bankruptcy and/or repossession.
The PIA has been set up to help borrowers who are :

• Insolvent (cannot pay their bills in full as they are due).

• In mortgage arrears on their principal private residence; and at risk of losing their home.

• In a home that is not disproportionately large for their needs.

You are only eligible to seek a PIA if : You have co-operated under a mortgage arrears process for a period of 6 months with your secured creditor in respect of  your principal private residence and the  result was that no alternative repayment arrangement was agreed or the secured  creditor confirmed it would not put in  place such an arrangement. In total, just over 800 PIAs were completed and agreed in Ireland in 2022.

If you think you or someone you know may be eligible for the Scheme you can:

• Contact a PIP directly, PIPs are qualified professionals, regulated by the Insolvency Services Ireland.  They will carry out an eligibility assessment, or
• Contact a MABS office or the MABS helpline (0818 07 2000). They will carry out a short eligibility assessment and refer the person to the appropriate service.

Find out more at www.backontrack.ie 

Bereavement Support - You can notify us of a bereavement by telephone 0818 818 181, our lines are open between 9am to 5pm Monday to Friday excluding bank holidays and public holidays where our dedicated team are available to guide you during this difficult time, alternatively you can write to us at Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare.

Before you get in contact you will need the following details of the deceased person, this is required to locate their account.  

• Name, address, date of birth & date of death.

We will also require your details: 

• Name, address, date of birth & relationship to the deceased.  

Following on from your initial contact you will be required to provide the following additional information:

• A copy of the death cert.       
• Any life assurance policy that the deceased had in place.  You should contact the insurance provider, as monies paid out under a life assurance policy may repay some of, or all of the outstanding mortgage account balance.
• The name of the executor of the estate (if there was a will in place)

You can notify us of a bereavement by telephone 0818 818 181, our lines are open between 9am to 5pm Monday to Friday excluding bank holidays and public holidays where our dedicated team are available to guide you during this difficult time, alternatively you can write to us at Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare.

Additional useful information that you may find beneficial in guiding you through this difficult time can be located below:

DEATH CERTIFICATES

The official site for ordering a death certificate is https://www2.hse.ie/services/births-deaths-and-marriages/order/death-certificate/ 

CITIZENS INFORMATION

The Citizens Information Board is where you can get information and advice on public and social services.
www.citizensinformation.ie

Tel: 0818 07 200

THE PROBATE OFFICE

The Probate Office issues Grants of Representation (You will find a list at www.courts.ie).
You can contact The Probate Office at

Probate Office,
1st Floor Phoenix House,
15-24 Phoenix Street North, Smithfield,
Dublin 7
Tel: +353 1 888 6728

MABS MONEY ADVICE AND BUDGETING SERVICE

The Money Advice and Budgeting Service (MABS) is a free, independent, confidential, and non- judgmental money advice and budgeting service for all members of the public. When a loved one passes away, this brings not only emotional trauma, but can also lead to financial challenges.
https://mabs.ie/managing-money/unexpected-life-events/bereavement-and-debt/