Mortgage Top-ups - How do they work?

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bijou

Registered User
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Hello All,

Can anyone give me some advice please regarding mortgage top-ups?
We have recently bought a new build property which came with the option of having a garage (planning permission was granted at the same time as the house). We decided at the time we couldn't afford to have the garage built (builder wanted extra 12k on top of house price).

My question is... how long do you have to have your mortgage running before you could apply for a top up? We would be looking at building the garage ourselves and possibly adding a sunroom. Also how are the repayments worked out?

Any advice would be welcome. Thanks.

Bijou
 
What is your current loan to value ratio - i.e. how much is the property worth and how much is the mortgage outstanding on it? This will be one key determinant of how much more you may be able to borrow. Obviously affordability (i.e. the lender's perception of your ability to service additional debt with your income/means) will be another one.
 
There isn't a timeframe as such. If you have cost over-runs which were not factored in the lenders will look at your new application subject to the guidelines outlined by ClubMan.

Timeframes usually only come into it when people look for frequent top ups which may be looked at as a case of people not managing their finances very well.
 
ClubMan said:
What is your current loan to value ratio - i.e. how much is the property worth and how much is the mortgage outstanding on it? This will be one key determinant of how much more you may be able to borrow. Obviously affordability (i.e. the lender's perception of your ability to service additional debt with your income/means) will be another one.
Click to expand...

Thanks guys...
The property was valued at E260k for the banks valuation in Nov06.
We actually agreed the sale back in Oct05 at E210k and we took out a mortgage for E178500 (15% deposit) - we actually only moved-in in Dec06 if that helps

bijou
 
Your loan to value ratio is fine so as long as your income is sufficient to cover the extra loan you should have no problem. Who is your mortgage with?

Sarah

www.rea.ie
 
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