Going interest only while selling ...

[Michelle_B]

Is it difficult to get approved for interest only mortgage ? do you need to prove financial difficulty ?
I am selling an investment property hopefully this spring/summer once the tenants move out. I am coming out of a fixed rate at the end of March so I was thinking of going interest only on the mortgage during the sales period and while there is no rent coming in.
It was an Ulster Bank mortgage, now PTSB (not Pepper). It is not an investment mortgage as it was my PPR initially for 15 of the 20 years I have owned it.

 

[Brendan Burgess]

Check the terms and conditions of your mortgage.

ptsb highlight the flexibility of their mortgage e.g. that you can take 2 three month payment breaks during the life of the mortgage. Not sure if that is for all mortgages. If I recall correctly, you don't qualify for them if you are in financial difficulty. so call them and ask them if you can take a break as you want to build up a rainy day fund .

If it applies to you, then take a full break

Brendan

 

[SCA911]

Were in the same boat last summer, although not with PTSB and were flat out refused interest only while selling rental property. They deemed our incomes not high enough to meet criteria without the income from the rental. Seemed bonkers really after paying both mortgages, PPR and Rental, for 12 & 20 years respectively without missing a payment ever, even when we were building new PPR and living in what was eventually rental property and having to pay both for a period of time and also having a much higher potential debt to pay when we first applied for mortgage to build the PPR. They seemed quite happy to let us struggle for the six months while selling. Eventually went with a loan from CU to cover costs while selling and paid it off soon as sale of rental was complete.

As I say not PTSB so see what they say. The whole process was a pain as had to submit all docs similar to a new mortgage application. Took them an age to decide, lots of back and forth, and calls not returned for weeks on end. Hopefully a better outcome for you.