Discount for moving off interest only tracker

[Dave Byrne]

I have 7 years left on a Pepper Interest Only BTL tracker mortgage @1.35. If I proposed a move to a capital and interest mortgage (over, say 20 years) would a) Pepper have interest in offering a restructered loan and b) possibly offer me a better than market rate (of say 5%) as it would improve on their current return?

 

[Brendan Burgess]

Say you owe €100k which will cost you €1,350 a year for the next 7 years.

You are offering to instead pay €5,000 a year in interest.

Why would you voluntarily pay an extra €3,750 a year?

So that you would get an extra 13 years to pay it off?

I think you need to do a Money Makeover as it seems you are not thinking very clearly about your overall financial position.

Brendan

 

[Dave Byrne]

I get the question. The why is because I’m applying for a new mortgage elsewhere and one of the new banks provisos is that I switch to a capital and interest repayment schedule on my BTL.