Self Build mortgage running out

J

Jolly Man

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Building a 4200sqft house builders finish complete have a mortgage of €368,000 over 30 years the house has recently been valued by mortgage company at €860,000. We need another €30k for finishes, kitchen furniture and so on, what is the best option top up mortgage or get a shorter term house improvement loan. We can take the 12month intrest free payback options on furniture and stuff but realistacially need €30k to finish and dont want to leave the place half finished inside and out. One final push and we will be moved in.
 
We were in the same position. We topped up ours and stated it was for landscaping, decoration works, Solar panels etc. - list is endless. Got it no prob. Best of luck with it!!
 
Thanks Sandy, im just wondering which is cheaper/easier to initiate overall. short term loan or mortgage top up.
 
It really depends on your lender. Some can turnaround a top up quickly, some (not naming names) are painfully slow to do anything.
Best bet is give them a buzz and ask for an "honest" answer as to the speed they can release the top up cheque.

To reduce the long term cost of the loan, try to put it over the shortest term possible with your lender.
 
Just a quick question. If you are currently on a decent interest rate (eg tracker at ECB + .6, .8 etc) and want to top up, will the bank want to change you to one of their current rates?
 
Unfortunately yes.
3 month Euribor (the benchmark for commercial lending in Europe) is now around 5% ( ECB + 0.75%)
Lending at any rate below this does not make sense for the banks.

You can keep your main mortgage at current rates, top up will be at new rate.
 
When you go to your lender, it may be easier to get approval if you stress that the extra money is for some changes you have made to your original design, and which is putting you over budget, rather than that you have run out of money.
The latter might suggest to the lender that you are unable to control your costs and did not budget properly. You don't want them thinking that you cannot manage your money.

Best Of Luck with the loan, and I wish you happiness in your new home.
 
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