Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Mortgage

  • 05-03-2012 3:29pm
    #1
    Tmurf
    Registered Users, Registered Users 2 Posts: 95 ✭✭


    We have just finished building our house and have been paying back on the mortgage the full payments. We are thinking of changing to interest only payments for a year so we can get on top of our overdraft/other bills after building.
    Can the bank stop us from changing to interest only or is it in our own hands.
    If anyone could shed some light thanks.


Comments

  • #2
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    Tmurf wrote: »
    We have just finished building our house and have been paying back on the mortgage the full payments. We are thinking of changing to interest only payments for a year so we can get on top of our overdraft/other bills after building.
    Can the bank stop us from changing to interest only or is it in our own hands.
    If anyone could shed some light thanks.

    Of course they can stop you to go interest only. You have an agreed contract to pay capital and interest. If you decide on your own to pay interest only your capital payments will not get met and you will fall behind on mortgage payments.

    Considering you are early on in the mortgage agreement since you only just built the house the interest portion would be above 95% of the capital and interest payments contractually agreed to.


  • #3
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    It depends on your lender. Banks will allow you to have an interest only period for up to 1 year while the property is in the course of construction but seeing as it is now complete you may find it difficult to gain approval for Int Only.

    In relation to the amount per month of the interest only repayment would certainly be well lower than 95% of your Capital & Interest repayment. E.g repayments on €200k over 30 yrs @ C&I amount to €869.32 and the Interest Only repayment on the same amount at the same rate and term are €540pm so the Int Only option is working out at approx 62% of C&I repayment.


Advertisement