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swopping to interest only mortgage with KBC

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  • 11-06-2012 9:36pm
    #1
    kellyjoe4321
    Registered Users Posts: 3 ✭


    hello, new to this. wife and i have a mortage with kbc for last 7 years. i am finding it hard to get work at moment. Well more so getting paid.
    Was thinking of trying to ask for interest only with kbc.
    Has anyone done this and if so. How did it go


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    #2
    crank_1975
    Registered Users Posts: 207 ✭✭crank_1975


    I was out of work in 2011 and KBC did it for me no problem. They may have changed their policy since then but as far as I know its all to to with ability to re-pay. They will send you a form to fill out which will list income versus expenditure and from that they will calculate ability to re-pay.

    Bear in mind that interest only will be short-term (3 or 6 months max) and that during this period you will not be paying principle so this will be added back to future re-payments.

    It may be the case that they will look for interest plus a nominal amount of principle (eg €200).


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    #3
    HowFinancial
    Registered Users Posts: 71 ✭✭HowFinancial


    Have seen a number of cases where KBC agreed to short term interest only, & others where monthly payments reduced for the short term. However, some do get refused... I'm sure you've heard this phrase on the radio already, but assessments are made on a case by case basis.

    Best thing to do is to go in with your figures (incomes & regular expenses) and have a very realistic sum in mind for what you can afford to pay.

    As previously said any unpaid principal will be added back, but certainly worth talking to your bank/provider about it for short term relief.

    If they try to up-sell you on mortgage cover get back to me as there is a 5% discount available at the moment with one of the bigger insurance companies. In fact, it might be worth your while revisiting your mortgage cover regardless of the outcome of discussions with mortgage provider.


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    #4
    Rightadvice
    Registered Users Posts: 11 ✭Rightadvice


    kellyjoe4321 wrote: »
    hello, new to this. wife and i have a mortage with kbc for last 7 years. i am finding it hard to get work at moment. Well more so getting paid.
    Was thinking of trying to ask for interest only with kbc.
    Has anyone done this and if so. How did it go

    Hi,

    KBC have a document were you fill in all your incomings & outgoings, if you ask for this to be sent out, complete & return they will review.

    Generally they will offer 3-6 months interest only but I have a client who has recently been approved for 12 months interest only with them.

    If you are going on interest only & you have a mortgage protection policy you need to be careful. The mortgage protection policy will be decreasing whilst the mortgage amount will be staying the same, so this might lead to you being under-insured.

    Regards,

    Robert


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