loans on equity of home

N

norah

Guest
Hi
I'm just wondering if you want to take out a loan of, for example E20,000, from your mortgage lender based on the equity of your house can you pay it back over a few years or is it added to your mortgage and paid back over the term of the mortgage?

I would like to consolidate all other loans with cheap intrest rate but dont want to be still paying for it in 25 years time!
 
You are thinking along the right lines in terms of doing a mortgage consolidation to clear short term debts and scheduling the top-up over a similar term rather than over the full term of the mortgage. I'm not sure how many lenders facilitate this but definitely ask yours and, if necessary, haggle and threaten to move elsewhere if they refuse. Not being smart but you should generally treat such a mortgage consolidation as a once off emergency measure to clear debts and take steps (e.g. lifestyle/spending changes) to make sure that you don't just rack up more debt thereafter. Good luck and let us know how you get on.
 
thanks a million

i contacted iib homeloans today and they will give us a loan over 3-5 years at about 3.5% which is less than half what we are already paying. not sure about any other lenders but it's great as a once off!

apperciate that u wouldn't want to make a habbit of it! could run into serious trouble and i'm the queen of financial dificulties!!!!

thanks for the quick reply
norah
 
with iib you may have to pay a valuation fee of max E127 but unlikely if u bought the house in the last few years. also a solicitors fee of abour E80 which will be deducted from the loan amount which is handy 'cause u dont have to come up with solicitors fees before getting the loan.

definatly worth looking into, in my opinion!
 
How long do you need to be in your first house before you can get a top-up on your mortgage?
 
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