Should I try to change from interest only to interest and capital

M

midlander

Registered User
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Hi,
My mortgage is with Mars Capital originally taken out in 2004 with Irish Nationwide.
- Mortgage amount is €145000, paying interest only since 2004, no arrears.
- The property is an investment property and rented out.
I asked Mars if I could begin to pay interest and capital and get the mortgage paid off over the next 15-16 years. They have asked me to complete a standard financial statement form.

The second option is to pay off capital and reduce monthly installments and I don't need to comlete a SFS form.
I'm to sure how to proceed.
Thank you..,,
 
At this rate it definitely makes sense to commence capital reductions ASAP. You do not need to complete a SFS nor ask permission to commence this process. Just get the IBAN and loan details from your Direct Debit payments and send on additional payments by bank transfer.
 
Hi brendan

I know one has a right to repay a home loan early without penalty.

Does the same apply to investment properties?

Brendan
 
44brendan said:
At this rate it definitely makes sense to commence capital reductions ASAP. You do not need to complete a SFS nor ask permission to commence this process. Just get the IBAN and loan details from your Direct Debit payments and send on additional payments by bank transfer.
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Hi, I've already overpaid by €5K and I called and asked them to use this money to reduce the capital and they the gave me the above options.
 
I've heard it all! A customer is on "interest only", he/she wants to start repaying interest plus capital, and the institution want an SFS...astonishing.
 
midlander said:
Hi, I've already overpaid by €5K and I called and asked them to use this money to reduce the capital and they the gave me the above options.
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See my earlier response midlander. Any overpayment you make will automatically be taken off the capital as you are covering the interest element separately. You are probably dealing with a low level staff member who misunderstands the concept of MARP and your rights to make overpayments on your payments without needing any permission from the lender.
 
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