Interest Only Mortgages in Ireland

Now proving a very popular method in Ireland in the investment property market Irish Interest Only Mortgages allow you to repay the interest only for whatever period of time suits you, this of course depends on the lender you choose as some lenders offer this method for the life of the mortgage and others restrict this to the first 3 - 5 years only.

The main benefits of an Irish Interest Only Mortgage are :

• Maximising tax relief
• Interest only mortgages can reduce your cash outlay
• Repaying the Capital by Property Growth, Pension or Endowment policies
• Interest only Repayment term has no effect on monthly repayment
• Interest only mortgages are an Ideal way to buy a retirement or holiday home

The option is always there to make capital repayments either with lump sums or monthly repayments and at any stage switching to capital and interest repayments from interest only mortgage payments.

This table below illustrates a typical monthly repayment in Ireland based on an interest rate of 3% apr 3% over 20 years. Different rates will apply to various lenders in Ireland.