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Mortgage interest only

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  • 22-01-2014 10:21pm
    #1
    Dane29
    Registered Users Posts: 71 ✭✭


    Hi all,
    I would like to go interest only for 12mths on my mortgage. I have mortgage for 7yrs and have never falling behind my payments but would love a bit of a holiday this year and take it a little easier. If I go interest only could this come against me in future if I ever look for mortgage again or any other thing I should be aware of?

    Thaks for you help!
    P


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    #2
    dobsdave
    Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    I did it once when I was let go from my job.
    Took six months interest only, problem with my lender was when it finished they increased my remaining payments to compensate.
    Not really advisable unless you really need it.


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    #3
    RMC10
    Registered Users Posts: 100 ✭✭RMC10


    Hi Dane,

    Your mortgage lender is not going to reduce your payments just because you want a "holiday" from same.

    Reduced repayments are decided based on your incoming and outgoings. Your mortgage (assuming this is your home) should be the first debt to be paid after all your monthly living expenses are calculated. Even MABS will tell you this. Secured debts come first.

    What the other poster said is correct, your full payments will increase afterwards to make up for the capital that you deferred over the previous 6/12 months.


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    #4
    sawdoubters
    Banned (with Prison Access) Posts: 1,288 ✭✭✭sawdoubters


    are you on a tracker,they can cancel the tracker

    there might be a clause where they can double your intrest rate


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    #5
    ButtersSuki
    Registered Users Posts: 53,028 ✭✭✭✭ButtersSuki


    sawdoubters wrote: »
    are you on a tracker,they can cancel the tracker

    there might be a clause where they can double your intrest rate

    DO NOT UNDER ANY CIRCUMSTANCES AGREE TO CANCELING YOUR TRACKER!


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    #6
    roro2
    Registered Users Posts: 412 ✭✭roro2


    They can't cancel the tracker, but they are unlikely to agree if you can afford the full repayments.


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    #7
    Dane29
    Registered Users Posts: 71 ✭✭Dane29


    Hi again,
    Thanks to you all for your advice. I'm not on a tracker unfortunately. When I was in bank about a year ago they said if I wanted to go on interest only just more or less to contact them. Didn't realise my payments after that would be up. So another year of fun!!!!

    Thanks again
    Rgds
    Dane29


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