Interest only mortgages

[modestus]

Is it the policy of Banks to grant this type of Mortgage for a short period of a few years only-it is in the interest of a property investor to go the intrest only route because this maximises the tax write off -anybody any experience of this ?

 

[ClubMan]

Is it the policy of Banks to grant this type of Mortgage for a short period of a few years only

Some lenders will allow borrowers to make interest only repayments for a few years at the start of a mortgage if that's what the borrower wants. Obviously the borrower will pay more in interest charges over the term of the mortgage compared to an annuity/repayment loand of the same term. Some lenders will offer interest only mortgages for the full term and leave it to the borrower to figure out how to clear the capital at the end of the loan.

-it is in the interest of a property investor to go the intrest only route because this maximises the tax write off -anybody any experience of this ?

In many cases yes.

 

[Sarah W]

Bank of Scotland (Ireland) will lend on an interest only basis for the term of the loan for home loans - it's up to the borrower to figure out how to repay the capital.

Sarah

www.rea.ie

 

[ClubMan]

Just to clarify - this query was originally posted in the Mortgages and Home Buying forum but based on my interpretation of the first post is about investment rather than owner occupier mortgages so I moved it into the Property Investment forum instead.

 

[bricksguy]

i switched my investment houses to interest only so as to release more money from rent coming in and to maximise tax right off,let there be no rush in paying off mortgages, treat investment houses as money box's if fully paid off you pay 45% on rental income, I will leave my young siblings decide what to do when they inherit the properties all with outstanding loans

 

[ClubMan]

I will leave my young siblings decide what to do when they inherit the properties all with outstanding loans

Do you have no next of kin other than brothers and sisters?

 

[bricksguy]

sorry, just to clarify I have two young children who when old enough can take on the responsibility of the loans, i dont believe in giving then anything for free as they will appreciate it less