how would you have saved money on interest? the full amount of the mortgage will be accruing interest over the period.Hi all,
Are any of you familiar with AIB's Deferred Start Moratorium? Basically you can defer your mortgage repayments for the first 6 months. I spoke to AIB about it but am still none the wiser. It seems that the interest still accrues and is added on to the total cost of the mortgage but my question is:
I own a property which I do not need to sell to buy the current house we're after. If we are successful and get the house, and avail of the deferred start, and then sell my existing property in the first 6 months and pay off a significant portion of the capital of the new mortgage with the proceeds, have I saved any money on interest in that time? The guy in AIB either didn't know what I was asking (maybe none of you do either) or didn't want to say.
so even though I have deferred the payment the interest will still need to be paid off. So no advantage? It definitely seemed too good to be true!how would you have saved money on interest? the full amount of the mortgage will be accruing interest over the period.
I always knew that repayments were bairly reducing the principal at the start. Just when you see the breakdown by year and its not until the last 10 years that it really starts to move!I am always amazed by how many people are confused by the difference between interest charged and repayment made. A lot of our explanations probably assume that this is obvious.
It's interesting that the guy in the bank was unable to explain this clearly to @Pneuma
The bit on the AIB website should be a lot clearer and should give an example.
And should have a prominent warning "Note: you will continue to be charged interest during this 6 months"
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