Remortgage or personal loan

[midland muck]

Hi all,
I recently came into an inheritance of land down the country. The tax liability is €32k after considering all expenses and thresholds etc. I don't have the funds cover this liability at the moment. I'll be in a better position when my SSIA matures next May.

So my question is whether to remortgage or get a personal loan to cover the tax liability with a view to repaying a large chunk when my SSIA comes on stream next year. The remortgaging option seems best as i think i can keep my current mortgage interest rate.
I'd be interested to hear your views.
Thanks

 

[Satanta]

The remortgaging option seems best as i think i can keep my current mortgage interest rate.

I tend to agree......
a) as long as you can keep your current interest rate and don't slip into a higher LTV
and b) you realise that even though the % is lower on the (re)mortgage rate, paying it back slowly over a long mortgage (~ 20 / 30 years) will cost more than paying a higher % over a short time (i.e. hit it with the SSIA and overpayments to clear the extra as fast as possible).

If you want to consider the full cost of the remortgage route vs. the personal loan route try using a mortgage calculator for the full remortgage cost (with the assumed increased repayments you should be able to make) and compare the long term costs with the personal loans you've been offered (or online calculations).

Could be a good time to investigate the mortgage best buys to see if a more competitive rate may be available (given the LTV), consider changing to bi-monthly payments (will give savings), look at new quotes of insurance etc. to help ensure you get to clear as much of the loan capital as possible.

 

[Guest107]

you should not pay any more than 1% over base either and possibly even less than 1% if you get a tracker mortgage .

Hunt one down , try BoS or NIB who will both pay you to switch to them as well as give you 1% or under that, variables tend to be 1.5% over base .

Run all the figures thru

www.jeacle.ie/mortgage/ie

before you make a decision.