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Interest only and/or Payment holidays

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  • 05-11-2008 1:12pm
    #1
    SpookyDoll
    Closed Accounts Posts: 533 ✭✭✭


    Apologies, probably been done to death but can anyone tell me what I need to qualify to change my mortgage to Interest only.....
    I know the life cover needs to be Level term but anything else?

    Also -if I cant do that I am going to ask for a Payment holiday, anyone ever got one of these or are they just a "pie in the Sky" promise that the banks make but never give anyone?

    I am getting conflicting answers from my bank.


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    #2
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    SpookyDoll wrote: »
    Also -if I cant do that I am going to ask for a Payment holiday, anyone ever got one of these or are they just a "pie in the Sky" promise that the banks make but never give anyone?

    I am getting conflicting answers from my bank.
    It depends on why you want to do it. If you just want extra money to spend, then don't expect bank to be too accomodating. If however you are struggling to make repayments then the bank will be keen to work out something with you.


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    #3
    SpookyDoll
    Closed Accounts Posts: 533 ✭✭✭SpookyDoll


    thanks, struggling not looking for extra spends (oh chance would be a fine thing)

    They said no way Jose to the payment holiday but will discuss interest only. They did warn though whatever you save over the 2/3/5 year period will be more or less loaded back onto your payment when the interest only period ends.....which sounds like I would nearly be worse off doing it....!!!


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    #4
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    SpookyDoll wrote: »
    thanks, struggling not looking for extra spends (oh chance would be a fine thing)

    They said no way Jose to the payment holiday but will discuss interest only. They did warn though whatever you save over the 2/3/5 year period will be more or less loaded back onto your payment when the interest only period ends.....which sounds like I would nearly be worse off doing it....!!!
    If you owe €200,000 at an interest rate of 5.5% and go interest only, that means you will pay €11,000 per year (less interest relief) After the period of interest only is over you will still owe €200,000. Nothing extra is loaded on.


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    #5
    billyblanks
    Registered Users Posts: 185 ✭✭billyblanks


    If you owe €200,000 at an interest rate of 5.5% and go interest only, that means you will pay €11,000 per year (less interest relief) After the period of interest only is over you will still owe €200,000. Nothing extra is loaded on.

    If the OP has a 30 year mortgage, takes 5 years interest only, will they not have to pay back the full amount in a shorter amount of time..... ie 25 years, making the mortgage repayments higher? Maybe this is what they mean by loading....


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