Landlords face losing interest-only mortgages

LANDLORDS could be facing a financial struggle, with many being told by banks that they will notextend their interest-only mortgage.

The Irish Mortgage Corporation said that there would have been many landlords who would have purchased investment property at the height of the boom and would have taken out interest-only loans on the mortgage. However, as mortgage costs go up and rents stay low many of them are looking to have their interest-only loans extended, but are being told that this is not possible by banks, according to the director of the Irish Mortgage Corporation, Frank Conway.

“We are encountering a growing number of small-time property investors who are facing a growing problem of how they will make the repayments on their property loans as banks refuse to extend their interest-only facilities.