Maximum top-up amount

B

beaky

Registered User
Messages
180
There have been so many threads on this topic that I am confused and cannot work out the answer myself.

Have 225k outstanding on home
24 years left of the 27 year term
std AIB variable rate
Current repay = 1194/mth

Have 15k outstanding on flat in dublin
3 years left of 10 year loan
Current repay = 409

no other debts and no financial probs
BUT
Need to buy 2 cars and renovate house

2 x 15k (2nd hand)car loans over 3 years
100k quote for house renovations(elec/plum/floors/doors/window/plaster)

gross joint incomes 120k pa
net joint incomes region 7250 pm

Can we afford the cars over 3 years and top up of 100k over 24 years. Would prefer an indication before I approach the manager.
 
What are the respective values of your home and the flat? You can generally top-up/remortgage to 90% of the value of either property and there would appear to be no problem on the income side. Do look at all options rather than just approaching AIB though - you could do MUCH better than a standard variable rate on your home and possibly on the flat too.

Sarah

www.rea.ie
 
Hi Beaky,

Should be no problem in remortgaging property. Rather then taking out a top up mortgage and 2 loans. You should consider consolidating them all into one remortgage. That way it will reduce your monthly out goings and you will only have one repayment.

The value of the property you decide to remortgage will affect the amount you can be approved for!
 
I would agree with the posts above - you should look at remortgaging as opposed to topping up your mortgage. Depending on the lender, you should then be able to split your new mortgage so you can repay the car loan over 3-5 years.

With your income there shouldn't be any problems borrowing the amount you are looking for.
 
You have plenty of choices , your indebtedness relative to your assets and income is tiny. I take it your income includes rental income in Dublin .

What is the value of both properties ????

You should get advice on the relative tax efficiency of loading ALL the debt onto EITHER the home OR the Dublin property rather than both. You may be able to write off loads of tax against Dublin

Its possible to 'overmortgage' the home while clearing the Dublin Mortgage but 'pledging the deeds' of that flat which is owned outright.

You may also reduce the mortgage term on the new remortgage to 20 years which could result in dramatic savings on Life Assurance depending on your age . You may have given up the fags since you got your last assurance out.

The car loans (payable over the lifetime of the mortgage ) are only about 5% of the value of the properties I am guessing, pfffft :p .

Again take advice. A good tax accountant can sketch it all out for you for a €100 fee for a good hours hours work.
 
Sarah W said:
What are the respective values of your home and the flat?
Click to expand...

Home Currently Approx 375,000
After renovation 500,000 (hopefully)

Flat Approx 345,000 (1 bed appian way)
But inherited by 10 cousins & my wife for use for her lifetime
Mortgage was 35,000 over 10 years to pay inheritance tax

You may also reduce the mortgage term on the new remortgage to 20 years which could result in dramatic savings on Life Assurance depending on your age . You may have given up the fags since you got your last assurance out.
Click to expand...

Have indeed given up cigs since taking life assurance but am now very late 30's.

The car loans (payable over the lifetime of the mortgage ) are only about 5% of the value of the properties I am guessing, pfffft .
Click to expand...

Pretty dead on I would think

Depending on the lender, you should then be able to split your new mortgage so you can repay the car loan over 3-5 years.
Click to expand...

So I still get the cars paid over 3 years but at 3.5% interest?? Why is this not done all the time? Sounds great

According to Karls mortgage calculator, repayments would amount to €1,927 pm for 325k over 20 years, but add €1,000 for car repayments and €409 for flat, total is €3,336 pm = 46% of net income. However only untill car loans and flat expire in 3 years time, saving interest instead of paying flat balance over next 20 years. Is 46 % too much?
 
Most lenders will allow 45% of your net income anyway so I wouldn't see any problem with them stretching to 46%. They stress test the repayments though so you might be slightly outside their criteria but you can arrange the split option over say 5 years. If you are on a variable rate you can pay extra each month and still have it paid off within three years.
 
If your cousins have a life interest that flat is highly illiquid and messy.

Its only yours when the last cousin dies. !!!!
 
If there are legal complications with the flat you could raise all the funds on your main residence - remortgage initially to repay AIB and purchase the cars and drawn down the funds for the improvements as and when you need them - there's no point in paying interest on the €100,000 upfront. Most lenders will do stage payments. If taking the cars over a 3 year term would push you outside the stress test on your net income you could take it over the shortest term allowable under the lender's criteria and make overpayments as and when you wish.

Although you'll qualify for the fees free remortgage offers on offer you will have stamp duty of 0.1% of the mortgage amount as the loan will be over €254,000.

Sarah

www.rea.ie
 
Thanks ever so much for those replys. Will shop around to get best re-mortgage provider, using own home as security over shortened 20 year term with cars over whatever term up to 5 years and over payments. I calculate I can save 200/mth and 40k interest over 20 years doing it your way. Many thanks.
 
You must log in or register to reply here.
Back
Top