Should/can we top-up mortgage to finish house?

J

Jock04

Registered User
Messages
338
Hi
Have 180K mortgage with PTSB, which was for self-build.
First drawdown was April 05, last on Jan. 06.

Due to an accident which kept me off work near the end of the project, we didn't get all the finishing touches done that we'd planned. Some tiling, paths, garden landscaping etc.
We've been picking away at this work with our disposable income, but progress is painfully slow & we were wondering if it's
a) prudent
b) too soon to ask PTSB about topping up our mortgage with an additional 15-20K
to let us get everything finished to a good standard by tradesmen.

The additional mortgage payments wouldn't be a particular burden - it's only money we're spending at builders merchants etc every month anyway.
Our LTV ratio is approx 40%.

Would the bank likely think we are too soon into the mortgage to be topping it up?
Is this the best way to raise the additional funds?
Appreciate any thoughts/advice...
 
I wouldn't think the bank would think it too soon, once you have the equity in your house and they are happy with the incomes, it's more business for them I would think.
 
It's not too soon to top up your mortgage, most lenders allow you to top up your mortgage after 6 months of final drawdown as long as the LTV is high enough.

You say your LTV is only 40% - have you considered switching? There are better rates available from other lenders for LTVs under 50% eg NIBs tracker of +.50%
 
Thanks folks.

Re switching - it's definetely something we'll consider, but thought we'd wait till we decided whether to top-up or not.

Probably the thing that's been holding me back from applying is that, like I said above, we've been using pretty much all our disposable income doing bits & pieces to the house, therefore our bank balance isn't growing - we're pretty much spending what we earn this year.
Would the bank understand that, or are they more likely to say "well, it doesn't look like you could afford an extra €150 a month" or whatever the payment would be?
 
The fact that you have been using all of your disposable income carrying out work to your house won't go against you. You don't have to have savings to qualify for a mortgage/remortgage, just be able to show that you can afford the monthly repayments based on the lender's criteria. As long as your monthly financial commitments including any existing loans and your new mortgage (factoring in a 2% rise in interest rates) don't exceed 40% of your net monthly income you should be fine.
 
You must log in or register to reply here.
Back
Top