Moving, change of mortgage

M

mcwhirter

Guest
Have a chance to move out of europe to a good job. Planning on renting but rent would only cover about 50% of repayment mortgage. Can I go on interest free longterm?
The house is worth about 100k less than my mortgage.
 
I presume you mean interest-only. Any decision to switch your mortgage to interest-only is at the sole discretion of your lender, so only they can answer your query.
 
Thanks, they are going to have to agree as I am not letting them stop me from moving to a better job. It is either interest only or nothing at all
 
I dont think it will be that easy! they may agree to interest only for a defined time frame but not indefinitely. They are going to want the principal loan paid back also. Please communicate with the bank and try to come to some arrangement.
 
I am currently doing that, but I'm not letting them stop me from moving as the mortgage will be too high for full repayment especially when losing interest relief.. The house doesn't mean that much to me, I'll pay them what I can, hopefully not in euros!!

I have thought about my credit rating but I haven't much hope in work here anyway and not much future.I will Never be able to afford the mortgage repayments unless they are on interest only. The way the euro is going I can imagine a drop soon, so even people who can at the moment afford to pay will be thinking twice when the euro is worth nothing.
I am paying so much tax(especially stealth) now and probably more next year, my life and my families has just become a treadmill. There has to be somewhere better than here
 
The bank can't stop you moving but if you do move, and are not paying the mortgage, then you will have to deal with the consequences of that. Ultimately, down the line, that could lead to repossession of the house and a charge being sought against yourself for the remainder. You've said you will never be able to afford the mortgage payments unless they are interest only. At some stage, the capital has to be repaid.

Good for you if you are getting up and trying to move on with your life but you need to fully understand the consequences of what you are doing.
 
Not sure where you are heading to, but it is as well to be aware that mortgage issues here can cause trouble for you abroad if you need to borrow. An email to an RTE show a while back illustrates this. Emailer had moved to Perth - leaving behind a house which was being rented; he approached an Australian bank about a loan - loan was refused because of mortage debt in Ireland. Basically, he cannot source credit in Australia because of this..
 
mcwhirter said:
the mortgage will be too high for full repayment especially when losing interest relief.
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You mean owner occupier mortgage interest relief? If you rent the property then you can offset some or all mortgage interest and other allowable expenses against rental income when calculating your tax liability.
 
ClubMan said:
You mean owner occupier mortgage interest relief? If you rent the property then you can offset some or all mortgage interest and other allowable expenses against rental income when calculating your tax liability.
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Thanks for the info , my mortgage would be approx 1500/month without interest relief, yet rent would be max 900/month. I would be down almost 600/month just on the mtg, and not including insurance etc. If the tax liability is on profit then I should not have any tax to pay. Is that correct?
 
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