Hi,
I am trying to decide the mortgage amount to take and I would really appreciate any advise at all. The following is a summary of the detail:
1. House Price: €590K
2. Savings: €160K
3. Maximum Mortgage we can obtain without exception: €500K
4. Loan offer received from PTSB last week: Mortgage amount €472K, Deposit Required €122K, period 35 years, Fixed term 3 years, rate 2.7% (as it is less than 80% LTV), monthly repayment €1,738.40 ; Bank Balance after deposit €40K.
We are sale agreed on a second hand house with a work required to the property to include full rewiring, heating system upgrade and internal insulation. The refurbishment could cost circa €70K. If we signed the loan offer we would need to continue to save another 20K-30K to complete all refurb work.
The only reason we have initially opted for the above mortgage is because when you have a LTV of less than 80% PTSB have offered us a good 3 year fixed rate of 2.7%. If the mortgage amount increases then the interest rate will change to maybe 2.9% because LTV will be 80>90%. PTSB have offered the 2.7% rate, 2% cash back initially and 2% monthly cashback which are some good benefits.
I am now second guessing myself and the question I am asking is should I just take a mortgage for €490K (increase it by €20K) now and take the worse interest rate at 2.9% instead of 2.7% which will mean we will have the money immediately to do the full refurb.
After all, the interest rate of 2.9% is only really for 3 years at the most. Do people have any ideas on what would be the best route eg take the higher mortgage and have more money for refurb now or take the lower mortgage and have to save for another 1 before the work can be done in order to just get the better 2.7% rate? Is there any other options I could be missing that you would recommend?
The lower mortgage of €472K would leave repayment/divided by net salary % of 23% versus €492K mortgage would bring us to a 25-26% mortgage/net salary.
Thanks,
Ed
I am trying to decide the mortgage amount to take and I would really appreciate any advise at all. The following is a summary of the detail:
1. House Price: €590K
2. Savings: €160K
3. Maximum Mortgage we can obtain without exception: €500K
4. Loan offer received from PTSB last week: Mortgage amount €472K, Deposit Required €122K, period 35 years, Fixed term 3 years, rate 2.7% (as it is less than 80% LTV), monthly repayment €1,738.40 ; Bank Balance after deposit €40K.
We are sale agreed on a second hand house with a work required to the property to include full rewiring, heating system upgrade and internal insulation. The refurbishment could cost circa €70K. If we signed the loan offer we would need to continue to save another 20K-30K to complete all refurb work.
The only reason we have initially opted for the above mortgage is because when you have a LTV of less than 80% PTSB have offered us a good 3 year fixed rate of 2.7%. If the mortgage amount increases then the interest rate will change to maybe 2.9% because LTV will be 80>90%. PTSB have offered the 2.7% rate, 2% cash back initially and 2% monthly cashback which are some good benefits.
I am now second guessing myself and the question I am asking is should I just take a mortgage for €490K (increase it by €20K) now and take the worse interest rate at 2.9% instead of 2.7% which will mean we will have the money immediately to do the full refurb.
After all, the interest rate of 2.9% is only really for 3 years at the most. Do people have any ideas on what would be the best route eg take the higher mortgage and have more money for refurb now or take the lower mortgage and have to save for another 1 before the work can be done in order to just get the better 2.7% rate? Is there any other options I could be missing that you would recommend?
The lower mortgage of €472K would leave repayment/divided by net salary % of 23% versus €492K mortgage would bring us to a 25-26% mortgage/net salary.
Thanks,
Ed