Delaying initial mortgage repayments

S

ShaneMc

Registered User
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Hi,

I was thinking of buying somewhere in about 9 months. Assuming this is not a new build, i have plans to go travelling early 2007 for about 6 months. Does anyone know if the banks would allow you to defer your first repayments say the first 6 months? The timing would be that just after i bought i would be heading off.


Thanks,
 
I'd say it is unlikely they would defer that many months. Also if they know it is your intention to leave work they will be less likely to even approve a mortgage.
 
Why not save up 6 months of repayments and then use this money to repay the mortgage while you are away? If the house is vacant for 6 months then you will need to notify your home insurance provider.
 
hi,

thanks for the replys. i reckon saving the six months repayments is the best bet.

Thanks,
 
Permanent tsb will allow you to take a 4 month payment break at the start of your mortgage. Presumable other banks offer something similar ?
 
AIB will allow you to take a 3 month holiday. Why not rent the house for the sixth months and get them to pay the mortgage
 
If you rent the property within five years of purchase as an owner occupier then you will be subject to a clawback of stamp duty (i.e. you'll owe the difference between what you paid - possibly 0% - and what an investor would have paid), you will not be entitled to owner occupier mortgage interest relief (although you will be able to offset mortgage interest against rental income) while the property is rented out, the rental income will be assessable for income tax (and the tenant will be obliged to withold some of this if you are out of the country), and some portion of the eventual resale gain will be assessable for CGT. You need to consider these issues just as carefully as the mortgage issues. If in doubt get independent, professional advice.
 
CLubMan

What if he was living in the house let say the single bedroom Does it then count a PPR and not liable to the above.
 
Sorry - I was mixing this one up with another thread where the person was heading abroad for 2-3 years. In this case the 3 months probably means that they can retain their PPR status and avail of the owner occupier rent a room scheme as long as the annual rent does not exceed the €7,620 limit.
 
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