Hi folks
Currently about to start year four of a 30-year interest-only mortgage arranged by MoneyMatters in Tallaght. This is to the tune of EUR184,000 with IIB Homeloans on variable rate, paying EUR638 monthly into that. Also have an insurance/savings policy with Friend's First to cover the actual loan amount, which is EUR258 monthly.
Comparing the interest-only mortgage + savings versus a standard mortgage, seemed to net me a saving of EUR120 per month which at the time helped me afford the mortgage in the first place. MoneyMatters also reckoned an 8% return on the savings over the 30 years would at least cover the 184K if not exceed it.
However, I have always had a worry about such a mortgage.
Just this week, I have had a letter from FriendsFirst to say they have reviewed the savings and decide that there's going to be a shortfall unless I increase the monthly EUR258 to EUR358.
Should I switch to a current-account annuity type mortgage - and is that even possible to do with the interest-only mortgage ?
Cheers
Frank
Currently about to start year four of a 30-year interest-only mortgage arranged by MoneyMatters in Tallaght. This is to the tune of EUR184,000 with IIB Homeloans on variable rate, paying EUR638 monthly into that. Also have an insurance/savings policy with Friend's First to cover the actual loan amount, which is EUR258 monthly.
Comparing the interest-only mortgage + savings versus a standard mortgage, seemed to net me a saving of EUR120 per month which at the time helped me afford the mortgage in the first place. MoneyMatters also reckoned an 8% return on the savings over the 30 years would at least cover the 184K if not exceed it.
However, I have always had a worry about such a mortgage.
Just this week, I have had a letter from FriendsFirst to say they have reviewed the savings and decide that there's going to be a shortfall unless I increase the monthly EUR258 to EUR358.
Should I switch to a current-account annuity type mortgage - and is that even possible to do with the interest-only mortgage ?
Cheers
Frank