changing Mortgage to interest only

D

diehard

Guest
Hi, I currently have a mortgage on an investment property over 25 years. My rental income has dropped over the last year and I was thinking of going for an interest only mortgage. Is this an expensive process to switch to a different mortgage scheme within the same bank. What are the downfalls?
 
There should be no charges (or minimal admin fees) to switch with your own lender, providing they offer interest only mortgages. Do they know the property is an investment?

Sarah

www.rea.ie
 
Yes the bank is aware that it is an investment property. Would I need a solicitor for this process?
 
Unlikely. Check with your lender - most just need a written request from you. They *might* want you to change your mortgage protection (which isn't mandatory on investment properties) to level term assurance but they can't insist.

Sarah

www.rea.ie
 
Hi there,
I changed my home mortgage to an interest only mortgage. They were a little reluctant to do it at first but in the end agreed when I threatened to leave. So for me it was only a phone call and a letter or confirmation. They had it changed for the next months mortgage and life is a lot easier now.
Hope that helps.
D
 
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