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Interest only - wording it to the bank

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  • 30-01-2012 9:42am
    #1
    ImARebel
    Registered Users Posts: 793 ✭✭✭


    Hi there,

    When we got our mortgage first we paid extra off it. At one point in time we were paying double due to the interest rates going down and not amending the standing order amount with the bank

    We have since moved to the base repayments ie interest + capital at today's borrowing rate (we have a tracker mortgage)

    Anywa we would like to go interest only on this mortgage now, until we have reclaimed the "extra" that we have paid in. We would like to go interest only until we have returned the mortgage to the same term, we took the mortgage for originally (it was a 29 year mortgage, but we had cut the term significantly due to the overpayments)

    I'm just not sure how I word it for the bank?

    We do not want to go into arrears, we do not want to go beyond the original term of the mortgage etc

    Equally we don't want to affect our tracker.

    Could they try and take us off it if we go interest only for a period?

    Or is the way I explained it enough? Will the bank accept our request? Do you have to state a reason for going interest only? Will the fact we've paid extra for 2 years count for anything?

    I don't want to go to the bank and get turned down as I've worded it wrongly.


Comments

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    #2
    Victor
    Registered Users Posts: 78,310 ✭✭✭✭Victor


    ImARebel wrote: »
    Equally we don't want to affect our tracker.

    Could they try and take us off it if we go interest only for a period?
    They very much might try that.

    I think you need to phrase your letter as an enquiry ("Given that we have overpaid by €x over a period of Y months would it be possible to go interest only for Z period"), not an instruction, setting out why you think they should facilitate you.


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    #3
    ImARebel
    Registered Users Posts: 793 ✭✭✭ImARebel


    OK, thanks.

    We'd be in serious doo doo if we lost our tracker but at the same time, we feel we've paid extra and are ahead so in essence we are only going to be returning to the terms of the mortgage we originally agreed with them

    I think we may be looking at it a bit too simplistically :(


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