morgage moving from interest fee, payments taking a jump

G

griff212

Registered User
Messages
11
Hi

In a bit of mess

Purchased Apartment for € 352k in August 2006
The apartments price now is still the cost that I paid in 06

30 year morgage ( 27 years left)

went interest only for the first three years

The interest only part is now over and the bank want to move it from € 1375 interest to € 1630 a month

After taking a 20% pay cut , this will be untold financial strain

How do I go about lowering it, can I shop around?
What should I be looking out for or will morgage lenders accept a switch?


Any help or advise would be appreciated

G
 
At €1375 per month on a mortgage of €352k, it looks like you were paying around 4.7%. This seems extremely high so you were probably on a fixed rate. Now that the the 3 ear term is up, it looks like they have probably offered you to move to another fixed rate but this time not interest only. Yuu should ask them about all the possible options available to you (variable etc.)

You are free to move the mortgage around but you are effectively trying for another mortgage. Banks are a bit tighter than they were in 2006 and as your salary has dropped by 20% this may not be possible unless you apartment is worth considerably more than the mortgage.

You should talk to your bank as well as looking around for the est mortgage rates with other banks and applying there
 
Property prices have dropped considerably since August 2006 peak. You are possibly looking at a value of circa 215k now, if you could sell it (I'm sorry!).

Negative equity means you can't move the mortgage to another provider unless you can put in the 100k+ difference, plus the 10% 'deposit' they will require. Can you outline your income / expenditure in the format for the thread, so people can help?
 
Hi imipwis,

I am in same kind of boat, but rang my bank they agreed to extend interest only for another year, I am fixed for two more so its on a year by year, they should be helpful with you, best of luck with it
 
You must log in or register to reply here.
Back
Top