looking into top up loan, but heading off, do i keep schtum?

P

paperclip

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i've a joint mortgage with a mate.

i'd like to get a top up loan, around 20k, so i can travel for a year.

i've a good job, and have been aproved a career break for a year, so will be back.

i've more than enough saved to cover the loan repayments for year.

i was on to the bank, just to go over basics, and they said borrowing 20k would be no problem, they were offering me alot more than that.

the thing is, should i tell them that i'm heading off for a year?

i like being up front about these things... but don't wanna shoot myself in the foot.

the repyments are only 210 a month, so that's not a problem.

if i was to tell them my plans, would this put a spanner in the works.

i've about 6k saved, but would rather go now than wait another year or 2 saving.

if i showed them that i had a couple of grand in my current acount would this bode well?
 
presumably your mate is okay with this? as the top up is for both of you as it's secured on the property, you'll end up paying it off for 20 plus years, if i were your mate i wouldn't be too happy about it.
 
dereko1969 said:
presumably your mate is okay with this? as the top up is for both of you as it's secured on the property, you'll end up paying it off for 20 plus years, if i were your mate i wouldn't be too happy about it.
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it's over 10 years, and i can pay it off when ever i like, without penalties.

i'd prob get a personal loan when i get back, credit union, and clear it.

so would only be for one year.

why would you have a problem with this?
 
The top up will legally be in BOTH your names - so your friend is equally as responsible as you.

Plus, you will BOTH be paying the interest on the top up - €210*12 months*term of mortage (say 20 yrs) = €50,400 - presuming interest rate remains unchanged.

Plus, you are lowering the equity in your JOINT home in your favour only.

some 'friend'!

Find another way....

Lastly, check your mortage agreement - some mortgage companies have written into the terms of the CONTRACT that they are to be informed of such things...
 
sorry - didn't realise it was over 10 yrs..

still think it's very unfair on your 'mate'...
 
let's pretend I was your mate. In essence what you are doing is taking out a loan to go travelling with the loan in my name and expecting me to contribute to the interest. In addition, 'dacting as security on the loan as it is secured by my house. If you decided not to come back and/or stopped making payments, I'd have to pay it

And your mate it ok with this?

Bank will require him to sign everything as well
 
Maybe I'm missing something here, but why not just get an unsecured personal loan (3-5 year term) for the 20k?

If your finances and potential to repay are in good shape (-it seems that they are), you should have no problem getting it, regardless of the reason.

Also, consider 'spreading' the travel over two tax years in order to minimise your income tax liability.

PS - enjoy your travels !!!
 
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