Variable tracker mortgage to Interest only mortgage?

[newhousey]

Hi all, just wondering how simple it is to switch from a variable tracker mortgage to interest only? Also how much less would I be paying per month? I have currently mortgage of €280k over 35 years and am just looking for a break from full payments for a year.

 

[pinkyBear]

Hi New Housey -
I am not sure if you can go interest only on a PPR - however I am assuming you are a FTB - in that case the budget should be giving you some relief.

 

[CCOVICH]

You can have an interest only mortgage on your PPR.

The mortgage calculator on www.jeacle.ie should give you some idea of the repayments.

Going to interest only may not allow a significant saving of you are only at the start of your mortgage.

Also, you will need level term life assurance in place, which is more expensive than decreasing term cover (basic mortgage protection), if you move to an interest only mortgage.

 

[demoivre]

AFAIK BOS do interest only on a ppr for the lifetime of the mortgage and IIB allow up to three years interest only. Newhousey to calculate your monthly repayments on an interest only mortgage multiply the amount borrowed by the interest rate and divide by twelve. Obviously if you intend maintaining the same term of thirty five years that will reflect in higher repayments at some stage to compensate for the interest only period.