Advice Please

M

mav

Guest
Hi All,

Have a primary resisdence, a rented house and an apartment abroad which i hope to rent out shortly. Rented house mortguage of 167000 worth 315000, interest only mortguage of €550 monthly and rent is €950. Owe 50,000 to father for apartment abroad, no rent yet as not built but can expect only €5-6000 per year. Have 25000 cash at moment.

Owe 359000 on my primary residence, worth I think about €450000 and would like to reduce as am paying interest only at the moment but will shortly have to pay principle also. I want to remortgage the rented property on an interest only mortguage and use the money to pay off either the apartment or my primary, will also use the cash aswell to reduce loans. Both the Irish properties are interest only and fixed until Nov 2008. Have great rates at the moment, I think I am nearly costing the banks at the as they were fixed at rates from 2005.

What do you guys think I should do?
 
Looks like you might be better off doing nothing on either Irish mortgage until your fixed period ends in Nov 2008. Assuming your dad doesn't need his funds back until next year, you could look at topping up the investment mortgae to pay your dad off if its a pressing matter but as you said yourself you are probably "costing" the bank money at the moment!
 
You might want to strongly consider paying capital and interest off on your homeloan. The rate may never be so low again.
 
the problem is that on a fixed interest only mortgage, paying off capital now will, most likely, attract a penalty from the lender. This should be considered first before heeding the generalised comment of the last post
 
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