top up/remortgage?

P

paperclip

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hi, i've bought a house with a friend of mine.

like most people in ireland, i had to beg borrow and steal to come up with the cash to buy the house.

i've 2 outstandin loans, one's 10k, i'd like to clear that asap.

whats the story with a top up on your mortgage?

is this a good or bad idea?
 
I was in the same boat, i had to borrow the 10% down. The repayments on the personal loan were killing me so I remortgaged after a while which added that 10% loan onto the mortgage for the same term as the initial mortgage, the way i looked at the mortgage payment was as if it was a 100% loan. It took a huge load off my shoulders. Of course it would be ideal to pay off your personal loans as quick as possible but thats not always possible.
However to remortgage you need to meet the following criteria:
At least 6 months of mortgage payments
Can only release not greater than 75% LoanToValue [diff between your mrtg balance and the value of your house]
As far as remortgaging for an expenses occured like stamp duty/solicitors fee's etc I would say dont as these are not part of the purchase price, i.e. the real value of the house.
 
Hi Paperclip,

We are in the process of doing the same thing. We had to borrow initially for part of the deposit (most of it actually!). Paid mortgage (PTSB) and personal loan for a year and now are in the process of re-mortgaging with Ulster Bank who will give you 80-85% of the current value of your house.
Ulster Bank Switcher Mortgage package means that Ulster Bank pay all your transfer costs so no soliciters fees / valuation fees.
We are happy enough with the situation now as with UB we will have their tracker rate which PTSB wouldn't give us and we will have the money to clear the personal loan. Hope this helps.
 
IIB and the EBS will both allow you to remortgage up to 90% of the property value as long as you fit on their lending criteria.

Sarah

www.rea.ie
 
Secured lending on house means a lower rate, period.
If you do an equity release, and at variable rate, you can clear it as fast as you want.
Prudent financial management is the issue.
 
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