Impact on credit rating of going interest only for a period? + KBC question.

D

DevilBoy

Registered User
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Hi,

We are emigrating - we've on a standard variable - and there's going to be a shortfall of ca. €700 between rental & current (KBC) mortgage payment.

If we go interest-only, it'll eliminate this shortfall for a period. I'd prefer to cover cashflow in the shortterm - as we've 3 young kids.

Does anyone know:

a) the impact of moving from interest + capital to interest-only on our credit rating (planning on coming back in a few years...)
b) how easy / difficult are KBC in negotiating a move to interest only

Many thanks,

DB
 
I'm no expert, but as far as I now your credit rating shouldn't be effected if you don't miss a payment.

KBC are fairly sticky in moving to interest only. They have the ability of making one feel that they have murdered somebody. You will need to tease it out with them in the first instance, but be firm and stand your ground.
 
I have to say that we had no problem going to interest only when my husband lost his job last year.We got this on both out primary residence and our investment property.
From when we applied for IO to completion was about 3 weeks.The person we were dealing with at KBC couldn't have been nicer.
Net64
 
@ net64 Many thanks for that - the reports are that people have been treated decently & fairly by KBC.

Does anyone know the impact on overall credit rating?

Thanks,

DB
 
@ mercman - cheers for that reply.

We're still weighing up our options as to what we are going to do here.

Any other thoughts?

Cheers,

DB
 
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