Mortgage top up?Advice needed

T

The Bride

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Hi,I'm new here.Wanted some advice on this.My fiance and I are marrying next year and are paying for our wedding ourselves.Currently we have 2 loans which together amount to €36,000 plus a combined credit card debt of €6500.We need €25,000 for the wedding so my fiance is saying we need to top our mortgage (which we've had for a year) by €70k which we have been told will increase our mortgage by €500 a month but all our debts would be cleared and any money we get from wedding guests can be put back into it next year.Im a bit worried about doing this as we have only had it a year and it means issuing new deeds etc..Would it hinder us if we sold up in 3/4 years as we're planning to do?

Also the building society's solicitor will cost us €900 plus vat for the legal fees.Is that ok or should we shop around for our own solicitor?

Advice would be greatly appreciated.Thanks
 
no expert but if you only bought a year ago, are you sure your enquity has grown to allow a top up of 70k? good for you if it has! ouch regarding debts! if the market levels off, the net effect of such a top up though might mean you will potentially only break even when selling!

Dont know how much you earn but i imagine 37k worth of debts is hard enough on the pocket! Bank may not like the maths in any case, so i wouln't pin my hopes on it! just my opinion though, no financial background here!!
 
Do you plan to pay back the €70k over similar terms to your outstanding loans, or just to run it into your 25/30/35 year mortgage? To do so would end up costing you significantly more over the course of the mortgage, and by significant I mean tens of thousands of €. I can't see you making €70k back in wedding gifts.

If you were to sell up in 3/4 years, you'll obviously have alot less equity in your house, so trading up and funding stamp duty etc may be more difficult.

Run the numbers through Karl Jeacles mortgage calculator and see how it works out...

http://www.jeacle.ie/mortgage/ie/

To be fair, it looks like you both need to get your finances in order and a remortgage isn't a quick fix unless you address the underlying problems i.e. why the €6500 on credit card, what are the €36k loans for, are they really necessary? Change to an older car perhaps?
 
Yeah the house has increased 100k in one year and our earnings seem to be good enough for them..
 
Apologies for the lecture but here goes.
E25,000 is a lot to spend on 1 day given the high level of debt you as a couple share already. With rates rising you should be looking to economise and pay down debt, not increase it.
Good luck:)
 
Increasing your mortgage from 250k to 320k (for example) over 30 years looks like it will cost over €60k in interest alone, and that's only at current rates.

In your other thread you mentioned that the €36k in loans were for your house deposit. If it were me, I could possibly justify refinancing this amount due to the fact that, with the property market the way it is at present, waiting to save the deposit yourselves at that time may have meant you would be borrowing an extra 36k anyway to meet the more recent prices. So that could theoretically net itself out and you could justify it if you were in a squeeze.

But there's no way you should be remortgaging over the long term for credit card debt and a wedding day. Put the wedding off for a year or two, have a smaller wedding, maybe go overseas, but don't pay for that one day for the next 30 years. It will end up costing you twice as much, at least.
 
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