The mortgage is with NIB. The person I spoke with at the bank seemed very surprised that I hadn't had a review of the current agreement and that there wasn't a date planned for one. This reaction led me to believe that I have an agreement that is neither common nor preferred from the bank's perspective.
I know this is an old thread but I too have an interest only mortgage, it's with Bank of Scotland on my own home. I have 17 years left on it but I really don't see how I am going to have a lump at the end to pay if off. I paid €290k for my house, mortgage of €200k but my house is now worth €150k if I'm lucky! If I was to start paying the whole amount it would be over €1200 a month which I can't afford on my own. Would the bank consider reducing the mortgage or am I being naive, after 17 years do they just take back the house? Is there anywhere to go for advice?
I too have an interest only mortgage, it's with Bank of Scotland on my own home. I have 17 years left on it but I really don't see how I am going to have a lump at the end to pay if off.
You have 17 years left to run of IO repayments. At assumption of 2.5% annual inflation the actual current value of your loan in 17 years will be €131,500.
Per CSO statistics. Assumption of 2.5% over a 17 year period is conservative. The above figures includes one of the worst periods of rcession in Irish historyInflation Rate in Ireland averaged 5.02 Percent from 1976 until 2014, reaching an all time high of 23.15 Percent in October of 1981 and a record low of -6.56 Percent in October of 2009
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