# 20 or 25 year interest only mortgages



## High Street (7 Apr 2020)

Can you please advise did any of the banks give 20/25 years interest only mortgages for purchase of houses or BTL  properties during the boom years 2005-2010.


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## cremeegg (7 Apr 2020)

High Street said:


> Can you please advise did any of the banks give 20/25 years interest only mortgages for purchase of houses or BTL  properties during the boom years 2005-2010.


Yes they did. Interest only on a tracker rate even. Bank of Scotland and National Irish bank at least. I filled my boots.


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## High Street (7 Apr 2020)

Did bank ever try to take it off you, I always thought i had 25 year interest only on BTL properties but bank said that principal was to kick in after 7 years, even though not very clear in the contracts


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## RedOnion (7 Apr 2020)

High Street said:


> but bank said


PTSB?


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## High Street (7 Apr 2020)

BOI


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## Baby boomer (10 Apr 2020)

Got 25 year interest only tracker from PTSB in 2005.  Asked for and got letter confirming it was interest only for full duration.  Didn't stop them trying to revert to full repayment about 5 years in.  I had to cancel DD as they kept trying to collect the full repayment monthly amount.  They claimed mortgage agreement superceded any correspondence and then denied they had issued any such letter anyway!  Fortunately I was (eventually - had to rummage in attic!) able to produce the letter and they seemed genuinely surprised by it.  Backed down and grudgingly accepted reality while "helpfully" advising me every so often to "consider" moving to a full repayment basis!   Do they think I came down in the last shower!?


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## Bronte (11 Apr 2020)

High Street said:


> Did bank ever try to take it off you, I always thought i had 25 year interest only on BTL properties but bank said that principal was to kick in after 7 years, even though not very clear in the contracts


Why did you think you had 25 year interest only? What exactly does your contract state?


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## High Street (12 Apr 2020)

Part 2 of the ICS mortgage loan offer states Type of Loan - Interest Only. NB all correspondence prior to loan offer referred only to - Interest Only, which is what I applied for. There was never any reference to capital repayments kicking in after 7 years.
Part 1 of the MLO states the amount of the mortgage;  loan period of 25 years; number of repayments 84 and 216. While I know now that I should have examined this more closely, there is no reference on the MLO to capital repayments


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## RedOnion (12 Apr 2020)

High Street said:


> ICS mortgage


For future reference, you might get better responses if you state up front which bank you are dealing with.
Initially you didn't say. Then you said BOI. Now it's ICS.
They all have different T&C's.


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## High Street (12 Apr 2020)

Sincere thanks for your prompt and helpful replies. The loans were first offered by ICS and then transferred to BOI, I am dealing with BOI on the loans for the last number of years


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## Bronte (12 Apr 2020)

High Street said:


> Part 2 of the ICS mortgage loan offer states Type of Loan - Interest Only. NB all correspondence prior to loan offer referred only to - Interest Only, which is what I applied for. There was never any reference to capital repayments kicking in after 7 years.
> Part 1 of the MLO states the amount of the mortgage;  loan period of 25 years; number of repayments 84 and 216. While I know now that I should have examined this more closely, there is no reference on the MLO to capital repayments


7X12 = 84. So clearly you’re not 100% correct about it being IO for 25 years when that fact shows the first 7 years are different from the other 18 years.


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## High Street (12 Apr 2020)

Dear Bronte 
I am simply stating what it says on the MLO and also that I applied for the loans on the basis that they were IO loans, so it was a big shock when I realised that capital repayments would start after 7 years (84 months). It clearly states on the MLO that the loan was IO for 25 years. So I am wondering are there any other similar cases out there who could advise? So it is not a matter of me being correct or not, I am just pointing out what happened at the time. I don't think it is unreasonable for me to expect that ICS at the time could have made it clear that while it states 25 years Io on the MLO, IO would in fact apply for 7 years only and not 25. Hindsight is a great thing and of course if it were now, I would question the reference to 84 and 216 on the MLO.


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## High Street (12 Apr 2020)

Baby boomer, thank you for your comments and well done on keeping your 25 year IO Tracker!!!


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## moneymakeover (15 Apr 2020)

All my loans with ICS were initial 10 years at interest only
followed by 15 years interest plus capital

At end of the 10 years it became obvious the new terms were unsustainable so there was an arrangement. After several meetings. The term was extended. One loan was paid off. One loan was split where 60% was interest only.


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