Interest Only & Review

N

newyork

Registered User
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I recently read this statement with regard to a BOI Intrest only mortgage

"Interest only option is available on investment properties for 10 years with a 5 year review"

What is meant by the 5 year review ?

What happens at the end of the 10 years, can you remortagage again with the bank intrest only for another ten years, or do you have to clear the debt at the end of the 10 years.

Thanks
 
It means that BoI will decide after 5 years whether to let the mortgage continue on an interest only basis for the remaining 5 or to switch it to annuity. At the end of ten years it will revert to annuity however you could negotiate a further interest only period or switch to another lender. Generally however the loan will have to be repaid in full with all lenders by age 70 (possibly 75).

Sarah

www.rea.ie
 
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