Mortagage Top up

P

pnrat

Guest
Hi

We are thinking to topup our Mortagage...what are the imp things to look for!.. say we top up by 60k or so... do we need to take Mortage protection policy for this extra amount...is it compulsory?!

Regards
pnrat
 
pnrat said:
We are thinking to topup our Mortagage...what are the imp things to look for!
Click to expand...
If you are topping up then maybe take the opportunity to shop around for the best/most competitive mortgage on offer for your situation and switch if necessary.
.. say we top up by 60k or so... do we need to take Mortage protection policy for this extra amount...is it compulsory?!
Click to expand...
Most likely unless your existing cover is sufficient.
 
What are your other details - e.g. original and currently outstanding mortgage amount, term, rate, property value, income etc.
 
You can release up to 65000 with First Active without the need for a solicitor. If the 65000 is composed of short term debt then your loan to value will need to be less than 80%. If short term debt only comes to 40000 then your loan to value will need to be less than 92%.
You will need to increase your mortgage protection though by the amount you are topping up by.

Providing your salary is strong enough for affordability purposes.
 
Also - it might be an idea to schedule the repayment of the topup over a shorter period than the main mortgage of just do this yourself by accelerating repayment of the topup. After all - no point in paying for the new car, holiday, kitchen etc. over 20 years rather than, say, 2-3 or whatever. And don't forget that you cannot claim owner occupier mortgage interest tax relief on the topup unless it is used to buy or renovate your PPR.
 
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