Stage Payments - pay on full amount or amount drawn down?

[househunter0]

Hi All

Firstly, I'd like to say what a brilliant forum this is - as an FTB, I would be absolutely lost without this resource so thank you to one and all who contribute.

My latest query is regarding stage payments and how they work. I have recently put a deposit on a new property and am in the process of organising my mortgage. Because of the fact that I was new to the whole process, I went with a mortgage broker recommended to me who has absolutely broken my heart and has made the whole process long, complicated and completely disheartening. Anyway, that's for another day... My mortgage is with Ulster Bank and I will need to draw down the money in stages. My question is - will I have to repay the full amount of the mortgage from the time I draw down the stages or do I only repay on what I draw down? I have asked the mortgage broker several times to give me an answer on this but still cannot get the information. Can anyone advise me please?

Thank you.

 

[Ben]

Hi Househunter
You only pay on what you drawdown. I think I had to pay my builder / developer 60% once he got to roof stage so my mortgage payments were around 60% of what I pay now. Of course it took the builder another 8 months to finish the house. Brace yourself if you are paying rent and mortgage at the same time!

 

[shoegal]

Hello, I am approaching the end of stage payments and have only paid back on the amount I've drawn down. So, as I drew down the stages the amount to be paid incremented.


Post crossed with Ben's.

 

[househunter0]

Thanks for your comments guys. Ben, I've been preparing myself for the worst as I am in the rent & mortgage situation - gonna be a tough few months....

Thanks again.

 

[JPSaltee]

I can also confirm, that you only pay on the money you draw down, as you draw it down. What I did was organise a mortage for about max the mortage co would allow, hoping that I wouldnt use it all so gave me that extra leeway......and now house is complete and I didnt use €15,000 so mortage is just on the amount that i used....