The Association of Personal Insolvency Practitioners (APIP) is meeting today to discuss whether it should continue to do specific types of debt arrangements after legal opinion emerged questioning if these comply with the law.
The issue involves personal insolvency arrangements (PIAs) that also include split mortgages.
A PIA is the restructuring of mortgage and other debts, up to 3m, with a lower repayment made over a six-year period. Sometimes debts are written off.
Often a split mortgage is agreed as part of the PIA.
A split mortgage involves warehousing part of the mortgage amount, usually for more than six years. No repayments are made on the warehoused part, with some banks charging no interest on the “parked” portion….
Read the full article at: http://www.independent.ie/business/personal-finance/property-mortgages/insolvency-experts-call-a-halt-to-split-mortgage-debt-deals-34744005.html