Financing advice

[uncle]

Would be interested in some financing advice.

Myself and partner have a deposit on a house and will take out a joint mortgage on it.

We both have properties 1 of which is already being rented.

Given the market environment we do not foresee selling any property at least for the moment.

We may therefore have to restructure existing mortgages (through equity release) and take out a new mortgage. We are considering Interest only on all the properties until such time as we could sell 1 property.

To make the most of LTV offers this may impact 3 existing mortgages with 3 different companies (ebs,nib,f.act).

Any advice , pitfalls etc ?

 

[Yellow Belly]

As far as I am aware the LTV offers from most lenders concern the principle private residence/family home rather than investment properties. There are subtle differences in rate on investment properties if the LTV is less than 80% but the reductiosn are so small I would let it influence any decision.

The biggest cost/fear I would have in your situation would the legal costs in restructuring the existing loans. This could cost over €1k per property. To merely change them to interest only you do not need to re-mortgage/restructure provided you leave them with the existing lenders.

Are you putting any cash into the purchase of this new property? If the answer is yes then maybe you could just take out a standalone interest only mortgage on an interest only basis.

If you like you can PM me the values of the existing properties plus how much you owe on them, and also the purchase price/borrowing requirement for this new property & I can do meaningful figures for you.