Yes, by paying interest only you are not repaying any of the capital so when the capital and interest payments start the capital is repaid over a shorter term so the monthly payments are higher.
There are a few other quick ceists that someone might be able to answer briefly. We are trying to budget monthly outgoings but are unable to without the following info:
1. on a mortgage of €360k for a couple (single first time buyers) what amount approx. will tax relief amount to per month?
2. Approx how much is home and contents insurance (assuming we haven't gotten the kremlin gold hidden in our house)
3. finally how much does life assurance amount to per month?
I know everyone is different but the figures must be roughly the same for alot of people? would appreciate any help here!!
thanks!
We're in the process of applying for a mortgage and a broker is currently looking into a 95% mortgage for us. Does anyone know much about them or what bank currently offers them?
Deposits and stamp duty are cleaning us out so we were hoping to have some sort of holiday break option or deferred payment for a bit of breathing space....any opinions from anyone?
PTSB offer a 4 month payment holiday for mortgages up to 98% loan to value; IIB offer interest only for up to 36 months at a 95% advance, Bank of Scotland offer up to 24 months interest only on 100% mortgages!
Have just applied online to REA as well. The interest only payments confuse me a little. If we chose interest only, is the money which we are not paying on the loan itself, simply spread out over say the remaining 32 years so the payments are a little higher?
I am going through an agent and have been told that only IIB and EBS offer 95% mortgages.First of all he told us that there were no 95% mortgages from PTSB - I can call and check this but just thought that someone might know the score.
secondly, IIB rates are steep enough and the agent told us that EBS are extortionate and will not deal with them at all. I am going to call EBS and apply directly but does anyone out there know much on 95% mortgages? Unfortunately, there are the next best option to a 92% mortgage when you dont have the capital up front!
I notice you haven't got an answer on your 3 questions yet. Here's my experience for what it's worth:
1. Mortgage relief: this'll be exactly the same for you. €66.67 each per month will be the relief (€4000 each at 20%=> 800/12 => 66.67)
2. With I got just the building insurance for approx €160 a year (based on a rebuild price of €280,000, as quoted by the banks valuer - who was also our stuctural surveyor; try to get someone who can do both and save you paying an extra €120 or so for the bank valuer). (Contents will depend on how much, but would have been another hundred or so for €25,000 cover I think)
3. Obviously this will vary a lot, but for 2 non-smokers in their late 20's it's €430 a year for us (with the first year half price with www.labrokers.ie)