Interest Only Rates

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emily_moss

Registered User
Messages
55
I am currently repaying my mortgage at a tracker rate of 3.95% with AIB. I want to change this to interest only for a year or so (it is an investment property). Is the tracker interest rate used to calculate the repayments or would the variable rate of 4.5% (approx.) be used?

Loan is less than 60% value of property.

Any advice on this?
 
if you are good at negotiating you should be able to get a tracker rate of .75% above ECB rate ..or maybe even less...
 
In cacl the amount due on an interest only they would use the variable interest rate or whatever rate you agree with them.


you should be able to get a tracker rate of .75% above ECB rate ..or maybe even less...
Click to expand...

Even for an investment property?
 
There is 130K left on the mortgage - house is worth about €250K.

I'm buying a new house so need to free up some cash!!


Doberden, how would I go about negotiating a rate?
 
0.95% is the best rate you can get the 0.75% Tracker is for mortgages over 500k and less than 80% loan to value.
The tracker rate is used to calculate repayments.
 
0.95% is the best rate you can get the 0.75% Tracker is for mortgages over 500k and less than 80% loan to value.
The tracker rate is used to calculate repayments.
Click to expand...

As I asked before "even for an investment property" or does it not matter anymore. There used to be a difference?
 
Depends on lender, AIB/First Active/PTSB do not charge a premium for investment mortgages.
 
The ICES Group are currently trying to negotiate good rates for investment property and you can guarantee they will get .75 above ECB or lower!

[broken link removed]
 
interest only is usually for 5 years, with a review thereafter. at the review, there should not be a problem wit hrenewing for a further 5
 
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