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EBS Interest Only mortgage for 6 months

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  • 18-02-2011 12:08pm
    #1
    La Haine
    Registered Users Posts: 244 ✭✭


    Hello!

    I've been paying full mortgage for about 4 1/2 years now with no great problem, even after a couple of paycuts. Now, I do have an outstanding loan that I could clear quicker if I could get an interest only option from EBS for 6 months.

    Does anybody on here have any experience in doing this?

    And just say they allow me go ahead with this - up till now I've been paying about €1,100 a month - what might I expect to pay a month after?

    Any comments would be appreciated.
    Thanks.


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    La Haine wrote: »
    I've been paying full mortgage for about 4 1/2 years now with no great problem, even after a couple of paycuts. Now, I do have an outstanding loan that I could clear quicker if I could get an interest only option from EBS for 6 months.
    How long would it take to clear going as you are now?
    Does anybody on here have any experience in doing this?
    Not myself, but anecdotally you want to watch where you're treading. If you have a tracker mortgage you could lose it. Some mortgage agreements may give you the option to go interest-only every now and again without affecting the agreement. But if you have to renegotiate your mortgage agreement to go interest-only for six months, you could lose your tracker rate and be onto a standard variable rate when the six months are up. Tracker mortgages are money in the bank at this stage, and you don't want to give it up under any circumstances.
    And just say they allow me go ahead with this - up till now I've been paying about €1,100 a month - what might I expect to pay a month after?
    That depends on 4 things - your interest rate, your loan amount, your original term and how many years you have left on the mortgage.


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    #3
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    You should only pay off the other loan first if the interest on it is higher than the interest on your mortgage, or you will be costing yourself money.


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    #4
    La Haine
    Registered Users Posts: 244 ✭✭La Haine


    Thanks guys!

    I've about €1500 outstanding on loan - paying back just under €250 a month.
    I'm literally down to cheese sambos for lunch at this stage (25% paycut - not including budget stuff).

    My mortgage is standard variable, though not sure what the interest rate is at the minute. The 6 months break would give me a huge boost. I know it would all add up in the end as I've 30 years to go on my mortgage as it is.

    So based on that - if I wouldn't save at least the €250 on Interest Only for the 6 months - I don't think I'd go ahead.

    Thanks again.


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    #5
    TonyInch
    Registered Users Posts: 57 ✭✭TonyInch


    How did you get on with EBS?

    I'm in a similar position been paying full mortgage for about same time with no problems until now basically everything fell apart at once (washing machine & fridge packed in),cant get on top of gas or electric, have plumbing problems(leak),the list goes on! 6month interest only would help me get back on my feet


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    #6
    La Haine
    Registered Users Posts: 244 ✭✭La Haine


    TonyInch wrote: »
    How did you get on with EBS?

    I'm in a similar position been paying full mortgage for about same time with no problems until now basically everything fell apart at once (washing machine & fridge packed in),cant get on top of gas or electric, have plumbing problems(leak),the list goes on! 6month interest only would help me get back on my feet

    Howdie!
    Still trying to pluck the courage to give them a ring!


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    #7
    marywary
    Closed Accounts Posts: 44 ✭marywary


    You don't need to worry about asking for int only for 6 months, staff are well trained to deal with these requests. Better to speak to them now than fall into arrears if you're struggling. Ring them & tell them your circumstances, they'll advise you & ask you to put your request in writing to go interest only for 6 months. Better to do it now than be worrying about it. Banks prefer if you keep in contact with them than not.


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    #8
    dave1982
    Registered Users Posts: 4,604 ✭✭✭dave1982


    6 month interest only should not be a problem.Most banks are accommodating these requests.250 a month is a lot to be paying back on top of a mortgage.If i were you i'd like that gone too.

    Nothing to be afraid of in ringing them


    Good luck ...(not that you need it:D)


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    #9
    Kurt01
    Closed Accounts Posts: 2 ✭Kurt01


    I think the best option you have is to opt for a financial service provider i.e. a financial advisor which are available online to help you out in planning a perfect financial plan that may help you save in the long run. So, if you are planning to opt for a financial service provider then do search for them online.


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    #10
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Kurt01 wrote: »
    I think the best option you have is to opt for a financial service provider i.e. a financial advisor which are available online to help you out in planning a perfect financial plan that may help you save in the long run. So, if you are planning to opt for a financial service provider then do search for them online.

    No need for that. Would cost more.

    OP, Its a normal enough request. I would ring your lender up and just ask them what you need to do with the request and anything you need to include with your request.

    I would inform them off your plan to clear the other loan and the mortgage will be a priority going forward.


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