longer loan or remortgage to pay off 2 loans in other bank

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paddi

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Not sure if this is right area but..
we have a mortgage in BOI (145,000 value of house, 90,000 mortgage taken to buy it). Paid every moth no problem.

we also have two 5 year loans in AIB - one a 5,000 car loans, one 28,000 loan taken out to cover a now fixed emergency medical issue. Haven't missed payments.

We want to tie up the loans into one and spread out payment over a longer time to reduce monthly outgoings.

A friend suggested remortgaging, but I talked to BOI on phone and mortgage dept say we can't remortgage to pay off loans, only for house improvements. Transfered me to loan dept but they say they can't loan to cover loans in other banks. I got confused on the phone so I'm not sure what the best thing to do is

Any advice on what others recommend greatly appreciated, we are tight for cash at the moment and lowering the amoutn going out on loans would be a huge relief. thanks
 
Paddi, give us all the figures, interest rate, amounts owing currently, term.

Can you also tell us how much you need to save to make life easier. Remortgaging short term debt is generally not a good idea. But a high cost like that medical emergency I'd make an exception for, for example.

Don't worry about getting confused on the phone, those guys are ten a penny, you just ring up another day and speak to someone who takes the time to explain your options.
 
cheer for the reply

28,331 @ 9.62% - 5 years remaining - 605 per month
5,100 @ 9.62% - 4 years remaining - 150 per month

we also have credit card bills for 800 and 1500 but we are chipping away at these as much as we can

mortgage is 25 year one started last year and we pay 499 per month.

we have sat down and analysed our spending and plugged all the leaks where money was going out, but the loans seem to be knocking us every month.

If we could get the overall loan payment down to 300 a month in total that would be a great help.
 
Did you buy the house last year?

Why didn't you borrow more at the lower mortgage rate and longer term?

BoI probably won't allow you to remortgage as they would end up getting less interest.

But another bank might accept a switch and lend you up to €116k or 80% of €145k. And it's likely that the rate would be lower.

Did you get the 2% cash back from BoI when you took out a mortgage with them.

Brendan
 
We got 1% back which was the deal going at the time.

We asked at the time could we add more to cover loans they said no, they said could only be linked to house improvements. Loan at that stage was 15,000.

Is there a clause that you can only switch after a certain number of years with a bank? Would be interested into looking into switching. Is there any bank you would recommend trying?

Otherwise would our best option be to go to BOI and try and get a longer term personal loan to spread out payments? Do banks need to see receipts for stuff before they release funds tho?
 
paddi said:
we have sat down and analysed our spending and plugged all the leaks where money was going out, but the loans seem to be knocking us every month.
Click to expand...

Of course you can switch at any time if you are not on a fixed rate. Some banks will even pay your legal fees for switching.

Some banks want receipts for renovations. Not sure to what degree they check them.

605 + 150 = 755 on the two loans which is a lot, and you want this to be 300? That's a big ask. Only way is with a remortgage.

It's worring you also have two credit card debts as well.

Are you sure you have properly looked at your spending.
 
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if you got 1% back and switch before 5 years this money must also be paid back.
 
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