Interest only mortgage

Hi there

Just wondering re interest only mortgage

I have a mortgage of 167,89 with Ulster Bank and 5.4%

If I go interest only for one year what will this cost me?

Is there some online calculator I can use?

Thanks
Noel

You can try this one.

[broken link removed]

ok but is there anywhere where it will tell me how much the bank will charge for this option?

Thanks
Noel

You won't be reducing the principal, so you'll just be renting €167k from Ulster Bank for a year.

At 5.4% your interest bill for the year would be €9,018 or €751 a month.

When you go back to paying principal and interest, you will either have to make higher monthly repayments to repay the mortgage within the original term, or ask your bank to extend the loan term by the same period as the interest only period and keep your original payment.

They might also charge you an arrangement fee, you'd have to ask them. If you are on a fixed rate or tracker mortgage, then going interest only might not be an option.

Another question please if I pay off the monies on mortgage at any stage then all I will pay is the capital etc so say not I pay of the 167k would that be it or what other monies would the bank charge

Thanks
Noel

Can you rephrase?

Apologies if I pay the balance of mortgage ie 167 off say next week is this all the bank will want me to pay

Will I have to pay some interest?

Thanks
Noel

If the capital outstanding is €167K and you pay this then there should be no other charges - other than any interest accrued since the last interest only repayment and assuming that there's no fixed rate breakage fee or something like that.