50k Top-Up Rate!

S

StevenC

Registered User
Messages
28
Hi,

My partner and I have queried topping up our mortgage by 50k for a self-build as we feel we may not have enough to finishe the house off. Our original mortgage was for 200k fixed at 4.8% for 5 yrs but we've been quoted at 5.9% fixed for 5 yrs for 50k from BOI which seems ridiculously high. Surely a credit union loan would offer better value or has anyone any other ideas of what we should do?
Any suggestions greatly appreciated!
 
StevenC said:
Surely a credit union loan would offer better value
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Not necessarily. Some CUs may still charge the maximum possible of c. 12%. Many give a rebate on this rate but still charge c. 8%. And that does not include the cost of having to keep money on deposit/in shares while borrowing.
 
If you don't like the fixed rate being offered, take a tracker rate instead or a different fixed rate.
 
That is interesting I am thinking of getting a top up and was wondering would they change the rate if I applied and was approved obviously. I have a tracker.
 
Luckycharm said:
That is interesting I am thinking of getting a top up and was wondering would they change the rate if I applied and was approved obviously. I have a tracker.
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Are you in a self-build situation too or do you already have a house?
 
Yes - but your situation is not directly comparable to the original poster's - they are trying to build from scratch. The lender will probably look at a topup on an existing property mortgage (even if for an extension) differently to a self-build topup and so the rate issues could be different too. I would ask you for details of your mortgage so that people could comment but you already said on another thread that you would not post these.
 
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