Are KBC offering Split Mortgages or medium term reduced payments?

S

Sean2303

Registered User
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Hi All

Does anyone know if KBC are offering Split Mortgages or medium term reduced payments?

We have completed SFRS and are waiting to hear back from them. Due to childcare costs (3 Kids in Afterschool and Creche) we need to reduce mortgage payment to cover interest and a small portion of capital. We would either like to do this for 5 years and then ramp back up when significant funds become available again or split mortgage off and then take back into consideration again in 5 years.
 
It doesn't look like it

[broken link removed].

We have a number of alternative repayment arrangements that we can look at, depending on your circumstances. These arrangements include:
1. Paying interest and part of the normal capital payment for a specified time.
2. Paying interest only for a specified time.
3. Extending your mortgage over a longer term, which will reduce the
amount of your monthly repayment.
4. Capitalising arrears – adding arrears to the loan and repaying them over an agreed period.
5. Deferring part or all of your mortgage repayment for a specified period of time.
6. Changing the type of your mortgage, for example from a fixed rate to
a variable rate. It is important to note that a fixed rate break funding
fee may apply.
 
Just yesterday my partner got another letter of variation from them...

It offers 'a less than interest only' agreement where the costs of the running the property are deducted from the gross rent and they get the net.

Again its delaying the inevitable in my partners case as the mortgage is unsustainable in the long term and these short term 'fixes' is can kicking in the extreme.

She has offered to sell the property but they don't appear to be interested. It was a PPR when she bought it but it was converted to an investment in 2009 when she moved into my house.
 
Brendan Burgess said:
1. Paying interest and part of the normal capital payment for a specified time.
Click to expand...

Thanks Brendan, option 1 would be ideal if the specified time was a couple of years. We can afford Interest only and some capital just not the full repayment at this stage. As I said things will change when Creche Fees are reduced substantially so they may look at this option for us.
 
Hi Sean

This would seem like a practical solution for you. You need a 5 year solution and not a full term solution.

So you need temporarily reduced payments and not a split mortgage.

But unfortunately the public discussion deems all sorts of temporary solutions as "extend and pretend" and "kicking the can down the road" which makes the Central Bank disapprove of these type of solutions.

See what KBC comes back with and then fill in the Case Study format if you need further advice.
 
I know of one case with KBC where the borrower enquired about a split mortgage and was advised to submit a SFS and the borrower's suitability for such a product would be considered. Haven't spoken to the guy since so I don't know the outcome.
 
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