where is best to borrow €60K- Bank, Mortgage company or Credit Union

B

busterboy

Registered User
Messages
4
Hi my very first post and i hope it's in the right place !!
We are looking to borrow and i was hoping for some advise on where is best to borrow from. The amount is approx €60K
We are with KBC on our mortgage and would qualify for the amount i'm pretty sure, however we do not want to lose our tracker interest rate and to consolidate this onto a higher interest rate if that is the right thing to do ....

The credit union are charging just over 9.4% interest rate and advised me that they are better than the banks as with the CU the interest rate reduces as when your loan does, whereby with the bank you still pay the same interest on whatever balance you have, lady also advised that the loan is insured with CU and not with the bank ? I'm thinking of a 5 year term

Sorry i'm not great at this and not sure where is best to go to ...
My credit history is good with both my mortgage company , credit union and also my personal banking with AIB.
Thank you for any advice.
 
Last edited:
busterboy said:
advised me that they are better than the banks as with the CU the interest rate reduces as when your loan does, whereby with the bank you still pay the same interest on whatever balance you have,
Click to expand...
Well that's rubbish! They all charge interest on the balance at that point in time.

Factor in keeping a share balance with CU.

Is your current account with KBC? What's the loan for?
 
Hi , the loan is for a small extension to the house . Our mortgage is with KBC and my bank account is AIB. Currently owe €70 K on mortgage and have about 8 years left on it .
 
Last edited:
Hi,

Your best option is to get a top-up mortgage from KBC. You will keep existing tracker for existing balance, and have a 2nd account with a different rate. Rate will be determined by your LTV, and you'll be able to overpay. Check details with them, but this is cheapest option.

Failing that, KBC are probably the cheapest personal loan rates. The interest rate is fixed for the term, but it'd be a shorter term than the mortgage option, and a higher rate.

Make sure you take advantage of the tax reliefs available under HRI scheme.
 
If it was me (not anyway professional with regards to money) I'd stick it on the mortgage and overpay the mortgage so that the €60K was gone off it after 5 years.

The downside to this is that you have to be mature yourself. If you're going to be tempted to not overpay then the €60K can take the life of your mortgage to pay.

The big upside is that you'll be borrowing at your mortgage interest rate. Probably about 3%

Edit: Ah RedOnions advice is probably better. I don't know about trackers (unfortunately).
 
Yes I agree with RedOnion, get a top up mortgage, it shouldn't affect the existing mortgage, if it would then obviously don't do it!

qwerty5, while KBC may allow a top up they won't allow it at the existing mortgage rate which is a tracker, it will be at whatever the present lending rate is so should still be a lot cheaper than a personal loan but it just means you can't just add it on to the mortgage, it needs to be a separate mortgage/loan secured on same property.
 
Even if you have to give up your tracker, it’s still worth structuring the total facility as a mortgage at (say) 3%.
 
Thanks to you all for your advice . It's been v helpful. I will contact KBC for details .
Again much appreciated.
Tks
 
Thank you for that, i will make the inquiry with KBC to compare restructuring the loan V's a home improvement loan where the interest is 6.5%, it also seems from their website that you can borrow up to €50 K for home improvements which will leave me with a shortfall.
Tks
 
You must log in or register to reply here.
Back
Top