Where can I get an Interest Only Mortgage / Top Up?

Hi guys,

Just wondering where I can get an Interest Only Mortgage for about 3 - 5 years?

Here is my situation at present:

Current Mortgage €233,000 - Rate Fixed until 2010 at 4.89% - Repayments are approximately €1,322 approx per month. Our house value at present is approx €330,000.

Ideally we would like to remortgage to get an extra €40,000 as I plan to go self employed and will not be making any money for approx 3-5 years and we wanted to have some money there to make to help out with the mortgage repayments and if things got a bit tight.

We have already asked our currently lender to go interest only, and they have refused - no explanation given - I didn't tell them about the self employment thing either. We have an excellent credit history.

What do I do and who does these types of mortgages? Should I switch mortgages completely or stay with current provider? Any advice would be greatly appreciated.


Currently my salary is €50,000 and my spouse is €40,000.

Thanks in advance

Star

If your current lender won't offer interest-only, that leaves you no option but to switch to another. Bank of Scotland are usually amenable to interest-only requests, among others.

Check with your current lender to see if they will penalise you for redeeming your current mortgage.

It's generally considered high-risk to use your home as security for what is effectively funding for a start-up business, especially on an interest-only basis. Are you certain that your self-employed venture is absolutely certain to succeed?

LDFerguson said:

Are you certain that your self-employed venture is absolutely certain to succeed?

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I'm actually going to the Kings Inns to complete my BL for one year and then going devilling, etc, as you probably know, Barristers don't make much money until they're established 3 - 5 years. I just don't know how else to fund myself for those years... re-mortgaging is the cheapest way really, a personal loan, the interest is too high... Any other ideas or ways I could go about doing it?

Being an established profession, I guess your prospects as a barrister are pretty good. I don't suppose you could hold off until you and your spouse can save up a war-chest, rather than borrowing?

Unfortunately, if I don't do it this year I don't think i'll ever do it, and I've worked so hard to get to where I am, I just don't want to stop and leave it unfinished - I know i'll regret it in later years otherwise! I've already put it on hold for 3 years!! I have a little money saved, but not as much as I would like.

Thanks for the advice, I'll try BOS and see what they say!!

Star

Starangel,

A number of lenders are offering interest only products and you should shop around to compare rates/service etc. Don't take the first loan that is offered, just because they are giving you the interest only option.

Emmet Pullan

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Thanks Emmet, Just on to my original lender (ICS) just to check what the story was and they said they have put a stop to offering interest only options on private dwelling houses! 3 months ago it was no problem, I just didn't get around to doing it plus they never sent me out forms - he said there wasn't even a request put on our account. However a week ago when I rang to check, another girl told me we had been refused? So annoyed!!