interest Only Mortgage

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We are on an interest only mortgage with FA, term first 2 years of a 5 year fixed rate mortgage.
Can we come out and switch from FA to another lender as the interest only is up Dec 09 and our payments will go up to over €2000 per month as we were sucked into a 5 yr fixed by our broker...interest rates were high enough 2 yrs ago when we took out the mortgage originally...
 
Breaking out of a fixed rate mortgage will result in penalties, which depending on the interest the bank loses out on for the remaining term, can be in the thousands.

You could enquire with First Active as to whether you can extend the interest only repayment up until the fixed rate period ends. Hopefully by then, interest rates will still be as low as they are now, and you'll benefit from the savings.

However, always bear in mind that whilst you stay on interest-only repayments, you do no chip away at any of the capital balance of the loan.
 
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