Switching Providers and Trading up at same time .

[Leighlinboy]

I'm currently in the process of switching mortgages , its been approved and valuation on my own property is all that stands in the way .
The new provider Finance Ireland have approved the figure i requested and the broker said they would have approved an extra 110K as well on basis of earnings etc.
I'm going with Finance Ireland as they advertise they will transfer mortgage at same rate to new property and then u can get a top up at whatever that rate may be .
Situation has changed slightly , and now i have seen a property i am interested in, , should i fix and look for top up straight away (the 110 k) , or can i switch trade up at the same time ?
The chain of trading up is difficult enough without another ball in the air , i'm only putting my existing one up for sale, so may need to let this one go.

 

[Brendan Burgess]

A very interesting conundrum.

Option 1) Switch

Benefit : locks in fixed rate and most people expect fixed rates to rise

Downside: Cost of switching : €1,500 - doesn't seem a lot to pay in the overall context of what must be a pretty big mortgage.

Option 2) Don't switch

You could spend some time before you actually trade up and will pay the higher interest in the meantime.
And rates are more likely to rise than fall.

Option 3) Switch and borrow the extra €110k now

• You will probably have the deposit for the trade up
• You will have the fixed rate locked in

Downside: You might not switch up for a while and you will be paying interest on €110k which you will have on deposit somewhere earning you 0%.

Brendan