Drawing down your mortgage

F

FunkyMonkey

Registered User
Messages
10
Hey all, I hope someone has better knowledge than me at this. My girlfriend and I are in the middle of applying for our mortgage and we are hearing two different scenarios on out situation. So for example if we apply for say€250k and get the mortgage for this amount approved but we only Draw down €220k do we still pay back the €250k or do we only have to pay back the€220k, we are way to new to this and are hearing it's both so would like clarification on which is true?

Thanks in advance
 
You only pay back what you borrow plus interest. If you only borrow 220k then that is all you owe and pay for. Why would you not be drawing down what you are applying for? Perhaps this is where the confusion is arising, if you have a loan offer for 250k and only want 220k then you should get a new revised loan offer to reflect that.
 
I presume you mean that you have Approval in Principle for up to €250k?

Be careful about the amount you borrow. For example, if you borrow less, you might qualify for the <80% rate, which is usually cheaper than the >80% Loan to value rate.

Brendan
 
It's the 10% contingency incase(God forbid) something happens during the build that we needed that extra bit, but thanks for clearing this up.
 
You must log in or register to reply here.
Back
Top