Interest only affect ability to get credit?

I

idontknow

Registered User
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Hi

I am wondering if you decide to apply for interest only for a period (due to one partner out of work) would this go against you if you tried to re-mortgage down the line?

1. with the existing mortgage provider
2. with other banks as your repayments would appear lower on your credit report for a period

Does anyone know what the savings would be to go interest only - original mortgage taken out 2 years ago was 363k now on a tracker rate of 2.75 (ecb + 1.75) repayments are €1140 after tax credit of €140

thanks
 
Going interest only will not go against you once you do not miss a payment. The banks will see it as you taking steps to keep your credit intact rather than sticking your head in the sand, even so it can be difficult to get interest only these days.

Interest only (not taking tax relief into account)

(€363,000 x 2.75%) / 12 = €832 per month repayment.

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Thanks for that
I supposed the only downside is telling them about our financial situation but they are going to be sticky about proof of income going forward anyway I suppose (for future loans)
 
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