separating,interest only mortgage, benefits,

S

summersun

Registered User
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hello all, stay at home parent, would be very grateful for views, legally separating, looking at benefit of taking over existing, mortgage of 137k and extend to over 30 years, interest only mortgage, to assist keep costs low and assist other parent buy new residence, monthly repayment about 450, would return to work outside home while 3 children with other parent every weekend, don't fully understand implications, maybe a 5 year period then return to standard mortgage, phew my head is spinning!:eek:aiming for 2 self supporting homes,
 
Hi summersun - welcome to Askaboutmoney.

I think an interest-only mortgage is a good idea. A repayment mortgage means that you are paying the interest and also, in effect, saving. It makes no sense for the two of you to be trying to save just when you are going through a very expensive time in your life.

The downside is that in 20 years time you will still owe the full amount of the mortgage or €137k. But that will happen only if you make no capital payments. Try to get an interest-only mortgage but when your finances are back in order, start making some repayments of capital.

Brendan
 
Lenders will assess affordability on annuity repayments, stress tested at 2% above current rates, on a term taking you no further than age 70 so whilst interest only might fit your budget it's not a guide to your borrowing capacity.

Sarah

www.rea.ie
 
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