Interest only Payment of investment mortgage?

Hi,
Hope this is in the right forum.We are facing an uncertain situation re our investment property ie current tenants have given notice and judging by dafts website theres a glut of similar properties in the area. We are unsure as we are hoping to rent it but are not confident because of the supply issue. Would you suggest we arrange an interest-only repayment on our mortgage or negotiating a fixed payment with the bank, we owe 80k and repayment is €690 so we can afford to accept a lower rent. Also any one know of any other rental websites and what do you think about the 'asking' rents on daft are they accurate.

HI Frunzy,

Was in a similar situation myself recently.

I changed to Interest Only and reduced the rent asking on daft.

Need to change with the times. In my situation, I made sure my house had the lowest price on daft ( even if only by 20 euro/month) Had loads of interst, viewed the house and interviewed about 10 people and gave to the person i though would be the best tenant.

More important to have onething coming in, in my case i reduce rent from 1100 to 950

Hope that helps. When the situation you can always revert to paying off capital. Thinks 5 years is the maximum I.O. period you can have

I always pay interest only. The capital contribution is so small to be immaterial but is a drain on cash resources.

You have touched on a more important question. Getting and retaining tenants. Too many people are dropping rents on DAFT and the tenants are chatting together. If you have tenants - retain them. Even a lease agreement over a term is no good as you might retain the deposit but lose rent over a void period and the get a reduced rent.

I offer my tenants an incentive. I do not reduce the rent but give them cash back if they stay. A few hundred Euro saving in August or at Christmas is enticing, but they have to earn it by staying on.

Hi again,
Just wondering if anyone has applied for interest only, we were told by our lender to put the application in writing stating the reason we want to go interest only.(ie we can't get a tenant!). I want to get it right and give them the info they need. Has anyone had their application refused as I said we owe about €80k with 12 year s left on mortgage.
Thanks