Getting a top-up mortgage

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longlongago

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My wife and I bought a house last year. Approx 45% loan to value. The house was in very poor condition and we had to do a lot of renovations using our own cash reserves. We also ended to having to re-roof the house which was not part of our original budget. A family member loaned us the money to pay for the roof and we now want to repay that money. We are saving quite a bit and could afford to pay it off by the middle of next year but it would wipe out our savings (again!). Our current bank would only allow us to top-up mortgage if we have drawings, quotes, completion certs, etc dated after they give us approval (which we can't provide since it was all finished up last year).

Are there any mortgage companies who would allow us to top-up our mortgage for €15-20k and not expect all the drawings/quotes/etc?

Thanks,
longlongago ;)
 
I'm not sure this would make a lot of sense. What you are essentially proposing is that you plan to borrow money to replace savings.

What are the savings for? If it was for something specific, it might make sense to borrow, but if it's just a rainy day fund, you've had your rainy day and had fix your roof to avoid getting wet!
 
If you want to borrow these funds through a mortgage, you would need to switch your mortgage to a new lender and add €15-20k to the mortgage balance to be cleared. It would help if you could provide receipts for works carried out, but the amount is small enough that some banks wouldn't even need the funds to be vouched.

Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
 
Hi Dave,
yes, that is my intention..... I was wondering which lender(s) would actually do this without vouching of the funds required.

Hi newtothis,
my wife and I seriously depleted our cash resources in order to renovate the house and I was not fully comfortable with that. I am quite conservative and want to have enough cash to last for ~6months in case we lose our jobs, etc. It may cost more to do it this way but we are more relaxed with that.

Thanks and regards,
longlongago ;)
 
@Dave_Curry_IMC
Realistically, are banks allowing extra funds like this on such a new mortgage?

I understand PTSB will but only after 2 years. Are there other banks that will in a shorter timeframe?

Thanks.
 
longlongago said:
Hi Dave,
yes, that is my intention..... I was wondering which lender(s) would actually do this without vouching of the funds required.
Click to expand...

Some banks will release such a (relatively) small amount without needing it to be vouched. Others are happy to lend an amount in that region for proposed works (i.e. estimates), and they don't verify that the works are completed. Others again are happy to repay a family loan, and don't look for any verification of what the loan was used for, i.e. they don't care whether it was used towards the deposit or for renovations following the mortgage drawdown. I don't want to get into naming them here, if you don't mind, as these are policies that can change at any time. I would recommend talking to a broker to discuss your exact circumstances and preferences.

RedOnion said:
@Dave_Curry_IMC
Realistically, are banks allowing extra funds like this on such a new mortgage?

I understand PTSB will but only after 2 years. Are there other banks that will in a shorter timeframe?

Thanks.
Click to expand...

Yes - it's generally not a problem to switch and release equity. The new bank might ask why the applicant is switching lenders (especially if the current mortgage is on a low rate), but the explanation that the current bank will not facilitate a top-up or the repayment of a family loan is a satisfactory one.
 
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