top up mortgages and switching?

Brendan Burgess

Brendan Burgess

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If someone has a mortgage of €200k on a house worth €400k, it seems that their existing lender probably won't give them an additional €30k to clear off more expensive debt.
They probably would get €100k to build an extension.

So could they switch to another lender and borrow the €230k?

Brendan
 
Id be very interested in hearing views on this as something similar has happened to myself and my partner. We were refused a top up of 28,000 on our mortgage with BOI (House worth €230 K and mortgage of €155 K. We are considering switching to another lender to see if we can top up and switch.
 
I switched to Ulster Bank recently. Their system had suggested that I could borrow more than I needed and the bank manager asked me if I wanted to apply for a higher amount. I declined. My LTV was <40% and, on paper at least, I had no other debts so perhaps my position was more favourable for an offer over and above my switch amount than would be the case for gazzer.
 
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Not necessarily, new lender would probably give money to take over existing mortgage plus extra for an extension, might not be so happy to give it for refinancing other debt.
 
Hi all,

Ulster Bank recently came to my workplace to offer finance advise and their services. I am currently on variable (fixed until Jan 2017) with EBS and asked Ulster Bank in relation to switching to them plus getting a mortgage top-up of 50-70K for an extension.

They went through the requirements and the numbers, I was informed
1. Should be no problem as long as I met the central bank mortgage requirements.
2. I would need to switch and ask for top up same time, If I switched now I could not ask for a top up for 6-12 months
3. If I went with them today they were offering 3.2% fixed for 2 years.

My mortgage is 290K remaining my house is around 600K value. I did not ask about paying off more expensive debt but juding the conversation I do not think it would have been overly entertained.

Hope this helps,
BW
 
Hi BW

Most lenders will give you a top up for an extension. So I guess the switch + top up is a natural follow on.

Not sure why they would give you €360k on a €600k house
but
not take on a switch of €300k+ €60k for a debt top-up
 
Thanks Bikini Widow for that info. Its interesting. I have approached PTSB about moving my mortgage to them. I have an appointment next week so I am going to ask about the top up at the meeting and see what is said.

At the very least I will be saving €65 a month if I move my mortgage to PTSB.


Bikini Widow said:
Hi all,

Ulster Bank recently came to my workplace to offer finance advise and their services. I am currently on variable (fixed until Jan 2017) with EBS and asked Ulster Bank in relation to switching to them plus getting a mortgage top-up of 50-70K for an extension.

They went through the requirements and the numbers, I was informed
1. Should be no problem as long as I met the central bank mortgage requirements.
2. I would need to switch and ask for top up same time, If I switched now I could not ask for a top up for 6-12 months
3. If I went with them today they were offering 3.2% fixed for 2 years.

My mortgage is 290K remaining my house is around 600K value. I did not ask about paying off more expensive debt but juding the conversation I do not think it would have been overly entertained.

Hope this helps,
BW
Click to expand...
 
Not to hijack, but I'd love an extension. No chance of repaying 40k over 10 years. But over 20 would be much better. Are lenders actually doing this? Is it dependent on LTV? Im with UB but they would probably try to lever my tracker off me. But I would happily pay SVR rates on the top up.
 
I think that Ulster Bank would do that if you meet the lending requirements. But normal lending criteria would apply.

Brendan
 
It would be subject to LTV and they could do the top up loan running alongside as such your original mortgage as at present lending rates and for the remaining term. But whether they will or not is the question. The other alternative is a full new mortgage for the total amount which will result in the loss of the tracker.
 
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