Interest only for 6 months - would you advise doing it

S

schoodles

Registered User
Messages
5
hi -

was onto the bank today - our repayments are 1400 per month but my business took a nose dive and there is nothing coming in for these few months - summertime should pick up again.

Would you advise going for interest only on mortgage - should bring repayments to about 600 - ....

i'm not changing the term of the mortgage.

We are on tracker + 1.30% BOI

any advise.
 
Not enough information to advise!

1. Do you need to do it or can you still meet the payments?
2. If you take the holiday now, can you do so again if needed?

If your business is seasonal, you need to reflect that in your budgeting.
 
it is not normally seasonal but this jan / feb had definitely taken a hit.

We can make payments but scrimping.

If we had the 6 months interest free it would let us clear other things hanging over us.

I'm not sure what to do...
 
schoodles said:
it is not normally seasonal but this jan / feb had definitely taken a hit.

We can make payments but scrimping.

If we had the 6 months interest free it would let us clear other things hanging over us.

I'm not sure what to do...
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with respect to your big picture, can you not get loan, extend overdraft, etc for your business, and maintain your mortgage capital repayments?

agree -> if they offer interest-only for 6 months TAKE IT,
but you cant see it as "getting off the hook"

you need to be very disciplined and for next 6 months act very responsibly
with lifestyle expenses (if you arent already)
- just cause you are "better off" by e800 a month, dont go upgrading the
car!

review everything after 2 or 3 months, and talk to bank again,
they may even offer to extend interest-only more, who knows!?

there is no guarantee what things will be like in 6 months time,
your business may not have improved, or may even be worse.

and nobody knows what national banking and financial situation will be.

but whatever happenes
DONT LET BANK MOVE YOU OFF YOUR TRACKER!

JR
 
JR Rizzo said:
but whatever happenes
DONT LET BANK MOVE YOU OFF YOUR TRACKER!

JR
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why not? Interest rates are only going up so tracker rates will have to go up sometime. Might it not be better to fix now so the op will know exactly what payments they will be making in 6 months/1 year so they can plan the cash flows accordingly. With the tracker you don't know how much the payment will be from month to month in the future.
 
usually the ecb plus 1.3% would be lower than the current fixed and variable rates so why would he want to be paying more on a fixed
 
glic83 said:
usually the ecb plus 1.3% would be lower than the current fixed and variable rates so why would he want to be paying more on a fixed
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for financial planning purposes. If the rate is fixed for n years you know how much the payment is going to be every month for the next 12*n months.

If you're on a tracker the rate can go up at any time, you don't even know what the rate or the payment is going to be in 2 months time, never mind two years. So your financial plans are full of uncertain amounts.

And if the rate is fixed now when ECB rates are at a minimum it might be cheaper than trying to do it in 6 months or a year's time, when rates are certainly going up.
 
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