Refinancing and Split Loan IO

Discussion in 'Loans & Mortgage Brokers' started by sunjet, 18th May, 2017.

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  1. sunjet

    sunjet Member

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    Is it possible to refinance to a split fixed/variable loan but pay interest only? Does this exist? If so, is there a calculator or does anyone have any pros/cons?

    As a side note, does refinancing really increase your borrowing capacity? Have a place i am living in but moving out and turn it into an IP with approx. 700k mortgage but looking to buy a PPOR and refinance to a variable/fixed split incase it takes a while or best just to fix it all and put all new savings in offset at PPOR?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    `Yes it is possible.

    Refinancing may increase borrowing cap by new lenders more generous calculations
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Confusing question with not enough data I suggest ?

    yes, variable IO and fixed IO combo loans exist - common.

    There are lots of calculators - what would you like it to model ?

    Refinancing to improve borrow cap ???? depends


    ta
    rolf
     
  4. sunjet

    sunjet Member

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    Thanks - yes vague question just wondering if could be done. Cheers