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Understanding your interest rates

Here’s everything you need to know about interest rates and policies that apply to your accounts.

Learn more about interest rates relevant to your loan by selecting one of the options below

 

We will notify you in writing of any changes to your Tracker or Variable interest rates and outline what these changes will mean for you in writing.

ECB Base Rate for Tracker mortgages

Variable Interest Rate

Reference Interest Rates

Have a question about Interest rates?

ECB Base Rate for Tracker mortgages

 

If you have a Tracker Interest Rate mortgage, your interest rate follows the European Central Bank (ECB) Base Rate. If the ECB announces rate changes, we will write to you with details of how this affects your Tracker interest rates before we make any changes.

  • Current European Central Bank (ECB) base rate: 4.5%
  • Last Rate Increase announced on 14th September of 0.25%, effective from 20th September, 2023.
  • Between July 2022 and 14th September 2023 the ECB have made 10 separate increases to the main ECB official lending rate.

Learn more about the official lending rate here.

Current ECB rates

 

The below table shows the latest ECB rates increases, their effective dates and % rate increases.

 

ECB Announcement

Rate Change

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%

15-Dec-2022

0.50%

21-Dec-2022

2.50%

02- Feb-2023

0.50%

08-Feb-2023

3.00%

16-Mar-2023

0.50%

22-Mar-2023

3.50%

04-May-2023

0.25%

10-May-2023

3.75%

15-Jun-2023 

0.25%

21-Jun-2023

4.00%

 27-Jul-2023

 0.25%

 02-Aug-2023

 4.25%

 14-Sept-2023

 0.25%

 20-Sept-2023

 4.50%

 

Visit the ECB website for more information.

ECB Base Rate for Tracker Mortgage FAQs

How is Pepper responding to the latest ECB decision in relation to raising interest rates?
The ECB base rate increase will affect Tracker mortgage customers, where such increases are automatically passed on as part of their contract.  The further 0.25% ECB base rate increase announced by the ECB on the 14th September will affect Tracker mortgage customers, where such increases are automatically passed on as part of their contract. It is likely that a further rate increase will be passed on to the majority of Variable Rate customers over the coming months. You will be notified in advance of any changes to your Variable Rate and what this change will mean for you.
What is a tracker mortgage?

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


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. For more information on the ECB base rate increase please refer to https://www.ecb.europa.eu/ 

I have a Tracker Mortgage, what does the recent ECB Base rate change mean to my tracker mortgage?
A Tracker Mortgage “tracks” the European Central Bank (ECB) base rate. This means the interest rate on your loan moves in line with the ECB base rate. ECB interest rate increase announcements will result in an increase to your interest rate.
Why are ECB interest rates increasing and why is this impacting mortgage interest rates?

The ECB has decided these rate increases are required to curb inflation across the Eurozone including Ireland.
These ECB rate increases have also pushed up the cost of short-term wholesale interest rates  in recent months and could potentially raise interest rates again at its next monetary policy meeting. Wholesale interest rates are used to fund many of the mortgage loans that Pepper services and are often referred to as the “cost of funds". Both the increases in the ECB rates and the increased funding costs have regrettably necessitated increases in rates on our customers Tracker and Variable Rate mortgages.

When will the rate changes announced by the ECB take effect on my Loan account?
Pepper will write to all customers impacted to provide them with information on ECB base rate increases and what they 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 payments increase by?

Pepper will write to all customers impacted, these interest rate change notification letters will include the effect of the latest ECB base rate increase on your 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 based on the latest ECB base rate increase of 0.25%.

 

Outstanding Balance Monthly NMI Increase*
€50,000.00 €10.27
€150,00.00 €30.82
€250,000.00 €51.37
€300,000.00 €61.64
€350,000.00   €71.92

*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.

Alternative Repayment Arrangement FAQs

I have an agreed Alternative Repayment Arrangement (ARA) with Pepper. How does the ECB 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 may increase in line with the ECB base rate / Variable Interest Rate changes.

 

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. We are here to support you, so please contact us if you have any concerns about your ability to make increased repayments.

I have an agreed Personal Insolvency Arrangement with Pepper. How does the ECB rate increase affect the arrangement?

If you are currently in a Personal Insolvency Arrangement (PIA), your payment will stay as agreed. However, 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 will be adjusted accordingly.

 

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

I have a Split Mortgage. How does this rate increase affect the arrangement?

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 is variable, we will notify you 30 days ahead of any changes the Variable Interest Rate. Your notification letter will let you know the reason for the change and its impact on your loan repayments.

Variable Interest Rate

 

If you have a Variable Interest Rate mortgage, the interest rate can go up or down based on a number of different factors as set out in our Variable Interest Rate Policy.

 

Due to the current market conditions, including changes in ECB and wholesale interest rates, we have had to make the difficult decision to increase Variable Interest Rates on these Loans. We will let you know in writing if we make further changes to Variable Interest Rates in advance.

Variable Interest Rate Increase FAQs

Has Pepper passed on more than the ECB Base rate increases to Variable Interest Rates?
No. The increases to Variable Interest Rates that have been applied are less than the rate increases announced by the ECB to date.
What is a Variable Interest Rate?
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 Pepper may either raise or reduce your current interest rate accordingly.
Does Pepper have a Standard Variable Rate?
No, mortgages 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. 
Following interest rate increases announced by the ECB, will there be further increases on my Variable Rate Loan?
This can be difficult to determine ahead of time given the challenging economic conditions, however it is possible that there will be further increases to Variable Interest Rates following increases in the ECB base rate.  We will contact impacted customers in advance to notify of any such further interest rate increases. 
How are decisions made in relation to variable interest rate?

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 rate. 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 driven by wholesale interest rates which have risen sharply over recent months as a result of the ECB decisions on interest rates.

I have a Variable Rate mortgage with Pepper, what do the interest rate changes mean for my Loan?
If any changes are to be made to your Variable Interest 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.
I am concerned that I won’t be able to make the repayments in relation to the variable rate increases on my Split Mortgage?
If you have a Split mortgage and are at risk of financial difficulty from the rise in variable rates, 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.

Fixed Rate Mortgage FAQs

Does Pepper offer fixed rate mortgages?

Pepper is not involved in new residential mortgage lending in Ireland, so it does not offer a range of alternative mortgage products including fixed rate products. We would encourage residential mortgage customers to consider your options on a regular basis as there may be a better product option available to you from another lender.  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 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.

 

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 the recent rate changes mean for me?
The rate increases 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.  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 and your monthly repayment.
I am currently on a fixed rate which will move to a Variable Interest Rate at the end of the fixed rate period, what does the recent rate changes mean for me?
The rate increase 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. 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 and your monthly repayment.

Reference Interest Rates

 

If your loan is linked to a rate such as the European Central Bank (ECB) rate or Euribor, please refer to the table below for the applicable reference rates.

 

These rates apply as of date of publication and do not include your lender’s lending margin which is added to give the gross rate applicable to the individual loan. Where the reference rate is negative, a minimum rate of zero percent plus your applicable margin may apply - subject to the terms and conditions of your loan.

 

Rates as at 22.04.2024

 


Period

New Rate %

EUR1M

3.837

EUR3M

3.892

BOE

5.25

ECB

4.50

 

These rates are published to comply with the Consumer Protection Code, (for personal consumers) and the Lending to Small & Medium Sized Enterprises Regulations 2015 (for non-personal consumers).

 

 

We’re here to help

 

This is a challenging time for many of our customers and we are here to help if you are concerned about your ability to meet your monthly repayments with a broad range of tailored solutions.

 

While we don’t offer a fixed rate mortgage product, we do have the flexibility to offer solutions including interest rate discounts for short term (which may be fixed for 2 years) and extended periods. This is based on affordability and an assessment of your individual circumstances. 

 

If you are concerned you won't be able to meet your repayments or if you are experiencing financial difficulty, please call our dedicated Helpline on 0818 828 828.  

 

It's important that you understand all the options that may be available to you. You can learn more about these options on our financial difficulties page.

Young couple calculating their domestic bills at home

General FAQs

When will I get my next annual statement?

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.

Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare.
How do I change my address within or outside the Republic of Ireland?
For any address changes within the Republic of Ireland, please post the necessary supporting Customer Due Diligence (CDD) document(s) for your new address, along with a letter requesting the change, to Pepper Advantage, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare.

For any address changes outside of Ireland, adequate supporting Customer Due Diligence (CDD) documents must be received prior to Pepper Advantage making the address change on our loan management system.
What is required for Customer Due Diligence (CDD) for an address change ?

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
How do I update my personal data?

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.

How do I make a Data Subject Access Request?

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.  
Can I authorise someone to deal with my account on my behalf?
Yes, at your request and with your written consent, Pepper Advantage must liaise with a third party nominated by you to act on your behalf in relation to an area's situation only, should it arise. Please note, this does not prevent Pepper Advantage from contacting you directly, in relation to other matters, or issuing communications required under the Code of Conduct on Mortgage Arrears (CCMA) or other regulations directly to you.
How do I request a redemption statement?
If you require a redemption statement please contact us on 0818 818 181.
Interest Certificate Request?

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.  

Can I reduce the term of my mortgage?
You can reduce the term of your mortgage by paying a lump sum off your mortgage and requesting in writing that the term is reduced.
What's the difference between Interest Rate and APR?
The Interest Rate is the actual rate at which interest is charged on the amount you borrow.
APR stands for Annual Percentage Rate which is the total cost of your mortgage over its term, considering the interest rate charged and any other fees.
I have changed my home insurance. Do I need to update Pepper Advantage?

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.

I have changed my life assurance policy. Do I need to update Pepper Advantage?
Yes, when you change your life assurance details, you should contact us so that we can forward you a deed of assignment to be completed and returned with the original replacement policy to Pepper.
What is the Building Insurance claims Process?

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.

I have received a home insurance cancellation letter. What is this?

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

How can I find out more about a Personal Insolvency Arrangement (PIA)?

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 

Do I need to take any action if my loan is expired, and I continue to make payments by Direct Debit to the Loan?
If your loan is expired i.e., the full balance is due at this time and you continue to make payments by Direct Debit, you should contact Pepper to make the necessary arrangements to amend your Direct Debit amount to include the increased interest charged as a result of the interest rate increases.
What do I do if a party to the mortgage has passed away?

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/ 

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Couldn’t find the answer you were looking for?

If you have any questions about interest rates, please contact Pepper Customer Support on the details below. Please have your loan reference number ready.

Residential Mortgage enquiries

 

Customer Support helpline:
 0818 828 828

 

Pepper Advantage,
PO BOX 4310,
Shannon, Co. Clare

Commercial Loan enquiries

 

Interest rate queries helpline:
 0818 828 728

 

CRE Primary Servicing,

PO BOX 697,

Shannon, Co. Clare

MABS is the Irish money advice service. MABS have been supporting people with money advice, budgeting, and problem debt for 30 years

 

MABS is free of charge.

 

https://mabs.ie/

 

Helpline: 0818 07 2000

Mon - Fri 9am - 8pm