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Interest only mortgage

johnp · 2006-10-02 11:01:24

If I were to get an interest only mortgage for an investment property, and the value goes up by 10% in the first year, can I remortgage for the value of the increase?

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02-10-2006 12:01pm

#1

johnp

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If I were to get an interest only mortgage for an investment property, and the value goes up by 10% in the first year, can I remortgage for the value of the increase?

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#2 02-10-2006 2:30pm
The_Conductor

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johnp wrote:

If I were to get an interest only mortgage for an investment property, and the value goes up by 10% in the first year, can I remortgage for the value of the increase?

I would be extremely surprised if any mortgage lender would even look at a request like that. In general (NIB/AIB/BOI etc) they will only remortgage an existing mortgage where the LTV is below 75%..... In an environment of increasing interest rates- it would not be prudent of a lender to expose themselves in the manner you are suggesting.

That said I'd be very interested in being proven wrong.

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#3 02-10-2006 2:40pm
johnp

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smccarrick wrote:

I would be extremely surprised if any mortgage lender would even look at a request like that. In general (NIB/AIB/BOI etc) they will only remortgage an existing mortgage where the LTV is below 75%..... In an environment of increasing interest rates- it would not be prudent of a lender to expose themselves in the manner you are suggesting.

That said I'd be very interested in being proven wrong.

Ok, I take that on board. I'm no expert in the area, just trying to work out my options.

Thanks for the help.

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#4 02-10-2006 3:41pm
Beta2

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I really think you should read this http://askaboutmoney.com/showthread.php?t=31710
and this http://http://boards.ie/vbulletin/showthread.php?t=2054967253
First.

Try and keep an open mind.

Best of Luck

B2

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