Hi,
We’re looking to remortgage our property to cover a budget overrun in renovations and an extension and despite some searches here I’m not sure on what’s involved or where to start.
Originally took out a 35 year mortgage with Bank of Ireland 2 years ago for $362,500 – drew $347,500 down back then with the remainder to be drawn down upon architect sign-off of the renovations and finished extension (paid the mortgage stamp duty on the $362,500 amount). Only finished now and budget has overrun a long way due to increasing the scope of the work along the way, so we now need to increase the amount to $390,000. Our 2 year discount rate with BoI has expired and they’ve put us on a terrible rate, which we definitely will push back on, but wanted to roll that negotiation into the remortgage exercise.
The house is now easily worth over $500,000 so 390k would be 78% LTV. Combined earnings between me and gf (both 26 and on deeds and mortgage) is around €88,000, with strong future earning growth potential. Gf earns substantial overtime in health sector but can no longer get an official letter guaranteeing it, though her P60s will show it as constant ove 3 years. No other loans (besides $1,000 outstanding on a car loan which will be paid off this week).
What is involved in remortgaging and does it seem like the right approach here (hopefully won’t need the full 390k so would pay off leftover straight away, and salaries should grow quickly allowing us to pay off mortgage ahead of schedule)? What fees and timelines are involved and should we consider changing mortgage provider to get a better rate (BoI offered my sister ECB +0.85% for lifetime of mortgage and our finances are stronger so would expect at least that rate) and try get fees paid for?
Thanks for any advice offered.
We’re looking to remortgage our property to cover a budget overrun in renovations and an extension and despite some searches here I’m not sure on what’s involved or where to start.
Originally took out a 35 year mortgage with Bank of Ireland 2 years ago for $362,500 – drew $347,500 down back then with the remainder to be drawn down upon architect sign-off of the renovations and finished extension (paid the mortgage stamp duty on the $362,500 amount). Only finished now and budget has overrun a long way due to increasing the scope of the work along the way, so we now need to increase the amount to $390,000. Our 2 year discount rate with BoI has expired and they’ve put us on a terrible rate, which we definitely will push back on, but wanted to roll that negotiation into the remortgage exercise.
The house is now easily worth over $500,000 so 390k would be 78% LTV. Combined earnings between me and gf (both 26 and on deeds and mortgage) is around €88,000, with strong future earning growth potential. Gf earns substantial overtime in health sector but can no longer get an official letter guaranteeing it, though her P60s will show it as constant ove 3 years. No other loans (besides $1,000 outstanding on a car loan which will be paid off this week).
What is involved in remortgaging and does it seem like the right approach here (hopefully won’t need the full 390k so would pay off leftover straight away, and salaries should grow quickly allowing us to pay off mortgage ahead of schedule)? What fees and timelines are involved and should we consider changing mortgage provider to get a better rate (BoI offered my sister ECB +0.85% for lifetime of mortgage and our finances are stronger so would expect at least that rate) and try get fees paid for?
Thanks for any advice offered.