I forgot to work out the interest only repayments so obviously €767 would be within budget here. Don't forget that he would also need level term mortgage protection life assurance (for a 50 year old) for the term of the mortgage but I'm not sure of the indicative costs and he would need some strategy for coming up with the additional €125K to clear the mortgage at the end of term and I'm not sure that c. €200 p.m. into an endowment policy or even a mortgage (if applicable) would be likely to generate that sort of figure?An endowment mortgage would not give lower repayments than an annuity mortgage - are you perhaps thinking of an interest only mortgage with the lump sum being repaid by way of the gratuity? On €200,000 the interest only payments would be gross €767 at 4.6%
In the absence of any clear strategy to come up with the full €200K at the end of the term I would assume so.Looks like the best option is interest-only but will his age restrict this?
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