# Top up Tracker Mortgage



## PapaAlpha (3 Nov 2021)

Hi,

Just wondering if it's possible to top up a tracker mortgage without losing tracker status?  I need to borrow about €10k and was wondering if this is a better option then taking out a loan.  I have about 10 years left on my mortgage and plenty of equity in it?

I'm clearly not clued in to any of this so any help would be appreciated.

Many thanks


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## Monbretia (3 Nov 2021)

Depends on what bank but in general the procedure for 'topping up' a mortgage does not change the original mortgage at all, you just take out a second loan that runs alongside the original one so say you owe 100k at 1% with 10 yrs left then your new 'top up' is a loan of 10k for 10yrs (or less if you choose, can't be longer) at whatever today's lending rate is, you don't get the same tracker rate on the top up, it's a separate loan at today's rates.

After that it depends on valuation, life cover, income etc, basically all the other requirements, if all these are ok then it can be a good idea as can be no fees involved unlike a new mortgage.   Purpose of the loan matters too, ideally for doing something to the house.


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## Brendan Burgess (3 Nov 2021)

How long do you need to borrow the €10k for? 
Not sure what the legal costs would be of increasing your mortgage by €10k.  

If they refuse or if there are costs, a short term overdraft might be better or a CU loan.

Brendan


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## Monbretia (3 Nov 2021)

The usual 'top up' product for small amounts like that incurs no legal cost usually, the only cost may come from a valuation if needed and maybe if the life cover is not sufficient for the new amount but if over 50 a waiver for the extra bit can be possible.


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## peemac (3 Nov 2021)

I can't see that working out.

You certainly won't get the tracker rate. That's an absolute certainty.

Some banks and credit unions offer secured personal loans at about 5%-6.5% interest for up to 5 years. (Circa €188-€195 per month)

Even if you did get a mortgage top-up, the monthly difference on 10k over 5years would be about €8-€15 and there possibly would be legal costs.


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## Brendan Burgess (3 Nov 2021)

peemac said:


> Some banks and credit unions offer secured personal loans at about 5%-6.5%



A secured loan is the most expensive possible loan. Here is the stuff from Letterkenny Credit Union making it sound attractive.

SECURED LOAN – *4.85% (5% APR) VARIABLE*​*“Borrow against your savings while keeping your nest egg in place”*



*Why Choose A Letterkenny Credit Union Secured Loan?*​
No hidden costs or administration fees
No penalty for early payback, you can pay the loan off early or make lump sum payments with no additional charges
Free life cover on your loan (subject to terms & conditions)
Low-Cost Loan- affordable loans
Flexibility to repay your loan with terms of up to 10 years
Repayments to suit you – weekly, fortnightly, 4-weekly or monthly
Fast and efficient service, for loans less than €10000 you can collect the loan on the same day you apply.


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## PapaAlpha (7 Jan 2022)

Brendan Burgess said:


> How long do you need to borrow the €10k for?
> Not sure what the legal costs would be of increasing your mortgage by €10k.
> 
> If they refuse or if there are costs, a short term overdraft might be better or a CU loan.
> ...


So sorry, I am only seeing your response now!  Probably just a couple of years.  I am now thinking the CU loan might be easier and cost efficient.  Thank you for your response.


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## PapaAlpha (7 Jan 2022)

Thank you all for your replies.  Much appreciated


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## ClubMan (14 Jan 2022)

Brendan Burgess said:


> A secured loan is the most expensive possible loan. Here is the stuff from Letterkenny Credit Union making it sound attractive.
> 
> SECURED LOAN – *4.85% (5% APR) VARIABLE*​*“Borrow against your savings while keeping your nest egg in place”*
> 
> ...


I don't understand how you can say that this is "the most expensive possible loan". There are far more expensive loans out there. Moneylenders (legal and otherwise), payday loans, credit card debt etc. 

Although, as usual, the CU headline rate is misleading because it doesn't reflect the hidden cost of borrowing more than you need while keeping money on deposit/in shares while borrowing at c. 5%. And, as you say, making it sound like they're doing you a favour.


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