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Need advice

  • 25-07-2022 1:16pm
    Registered Users, Users Awaiting Email Confirmation Posts: 1

    Hi we just got approved for local authority home loan just got the information pack today and repayments are high and it's over 29 years and we will be paying over 100000 extra on the loan is this normal it just seems like alot extra to be paying

    Post edited by Niamh on


  • Employee Posts: 12,597 ✭✭✭✭✭ Niamh Community Manager

    Moved to Accommodation & Property forum.

  • Registered Users Posts: 15,000 ✭✭✭✭Leg End Reject

    Yes, totally normal. The interest on a home loan is eye-watering over the full term.

    I'm not sure about LA home loans, but the repayments on a standard mortgage are mainly interest in the first 10 years and the capital barely reduces.

  • Moderators, Society & Culture Moderators Posts: 32,274 Mod ✭✭✭✭The_Conductor

    Thats the power of compounded interest.

    The interest rate you're going to be paying, and the general terms of the mortgage, are far more in your favour than the terms which are on offer from commercial lenders to borrowers.

    Yes- it sucks that you'll be paying 100k in interest on the loan- however, most people would probably be paying more than this.

    It might be worth your while asking whether its possible to make balloon payments to reduce the mortgage term down the road a bit (if your finances allow)- however, I suspect the answer will be a straight forward 'no'.

    The 100k in additional payments you're making- is probably going to be the cheapest finance you will ever get from anywhere.

  • Registered Users Posts: 28 Iriah251

    Yep we were approved by dccc of only 205 and wev to pay 300 ... we have been waiting 5 months to hear back from sdcc that's the one we want ... can I ask who u applied to ?