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

S

starangel

Guest
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?
Click to expand...

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

[broken link removed]
 
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!!
 
You must log in or register to reply here.
Back
Top