Buying a car: top up mortgage v personal loan
- Thread starter harvey
- Start date
How much of a loan are you looking for??
Say 20k over 5yrs(max car loan term) @ 9% (std car loan rate) = total amount to be repaid €24,868.20.
Say 20k over 20 yrs (mtge term) @ 4% = total amount to be repaid is €29,056.8.
So by not "topping up" you will save yourself at least €4k.
Also there may be associated costs with topping up ie legal & upstamping fees.
Also with the additional borrowing you would be putting your home at risk for the sake of a car!
Say 20k over 5yrs(max car loan term) @ 9% (std car loan rate) = total amount to be repaid €24,868.20.
Say 20k over 20 yrs (mtge term) @ 4% = total amount to be repaid is €29,056.8.
So by not "topping up" you will save yourself at least €4k.
Also there may be associated costs with topping up ie legal & upstamping fees.
Also with the additional borrowing you would be putting your home at risk for the sake of a car!
Went back to my mortgage lender and they weren't too bright. I asked the very same questions on 2 different days and was given entirely different answers, eg the type of mortgage I have, one said I was variable and another tracker and then were quoting different rates. They both told me that I would need a new life policy eventhough there would be sufficient funds to pay off mortgage and car loan in event of death- due to accelerated payments. No amount of explaining would budge them. Figure that out ! I have decided that the paperwork is far too much hassle although I have noted their inefficiencies that I will move the mortgage from them at a later date.
RightBanker
Registered User
- Messages
- 15
You're far better off using the top-up
20k @ 9% (std car loan rate) = will cost you 4,868 in interest and your repayments will be 415 per month
If you top up your mortgage by 20K and pay the same 415 per month for 5 years you will get:
20k @ 4% = total amount to be repaid is €22,099 - only 2099 in interest
After the 5 years you'll have reduced the principal on your mortgage by a further 2,500
.... and this will save you further interest of over €1,000
It's a much cheaper option but you will have to pay some fees. €130 for valuation on the mortgaged property etc and it will take longer to get approval than if you walked into the bank but the savings are worth it.
20k @ 9% (std car loan rate) = will cost you 4,868 in interest and your repayments will be 415 per month
If you top up your mortgage by 20K and pay the same 415 per month for 5 years you will get:
20k @ 4% = total amount to be repaid is €22,099 - only 2099 in interest
After the 5 years you'll have reduced the principal on your mortgage by a further 2,500
.... and this will save you further interest of over €1,000
It's a much cheaper option but you will have to pay some fees. €130 for valuation on the mortgaged property etc and it will take longer to get approval than if you walked into the bank but the savings are worth it.
RightBanker
Registered User
- Messages
- 15
You're far better off using the top-up
20k @ 9% (std car loan rate) = will cost you 4,868 in interest and your repayments will be 415 per month
If you top up your mortgage by 20K and pay the same 415 per month for 5 years you will get:
20k @ 4% = total amount to be repaid is €22,099 - only 2099 in interest
After the 5 years you'll have reduced the principal on your mortgage by a further 2,500
.... and this will save you further interest of over €1,000
It's a much cheaper option but you will have to pay some fees. €130 for valuation on the mortgaged property etc and it will take longer to get approval than if you walked into the bank but the savings are worth it.
20k @ 9% (std car loan rate) = will cost you 4,868 in interest and your repayments will be 415 per month
If you top up your mortgage by 20K and pay the same 415 per month for 5 years you will get:
20k @ 4% = total amount to be repaid is €22,099 - only 2099 in interest
After the 5 years you'll have reduced the principal on your mortgage by a further 2,500
.... and this will save you further interest of over €1,000
It's a much cheaper option but you will have to pay some fees. €130 for valuation on the mortgaged property etc and it will take longer to get approval than if you walked into the bank but the savings are worth it.
RightBanker
Registered User
- Messages
- 15
too much alcohol due to too much stress !! 
)
)I'm just wondering about what you said about the accelerated payments. If you have made these and have been making them over a period of time could you use the extra you have already put in rather than the expense of a top-up and still have the original moftgage over the original time frame. You can then start making your accelerated payments again - perhaps putting in what you would have paid back on a loan had you taken one out as well as your mortgage. would the banks be open to this?