What does it mean for you if your interest only terms are due to expire in the next 3 to 6 months? When the interest-only term expires the repayments will automatically revert to principal and interest. The repayments on such loan will then increase quite considerably. This is the main concern for investors in this position. It can be quite stressful if you are at a point where to extend your interest only loans period, you have to go through a full credit assessment. It is quite an in-depth process. Therefore, many investors find themselves not being able to revew that interest-only period.
At Rise High we are being very proactive and contacting our clients on a regular basis and really looking ahead. So rather than waiting a month before that interest-only term is due to expire, we are looking at least 12 months ahead. By planning, there are certain things that we can put in place now to prepare for the term expiring. The key is to be proactive. A debt management strategy will ensure that repayments are still managable and within your budget.
For more information on Interest Only Loans, what you can do when the interest only period ends, or evaluating your debt consolidation or refinancing options, get in touch with us here ! For more finance tips be sure to visit Rise High TV!