Bank eager to offer remortgage advice needed

2

2010

Guest
hi there, have been a long time reader of askaboutmoney.com; so i have an issue and decided to register to see if anyone can offer advice.

i have a mortgage and bank account with different institutions.

i have a bit of short term debt, a loan of 21k , 2k on a credit card , and overdraft of 3k, all of which are being paid fine and fully up to date.

i am paying monthly €685 for the personal loan excluding credit card and overdraft.

I have a mortgage of 66% on my home which i pay monthly 1120 per month which is up to date.

my bank BOI with whom i have the current account and personal debt are very keen to offer me a remortage (ie move the mortgage over to them from the other institution) to lump the whole lot together and pay monthly 1253 excluding TRS , over the same term that is on the mortgage.

you see, when something appears to be too good to be true it usually is, well thats the feeling i am getting, as the bank seem very keen to assist.

what do you guys think of this situation,
 
so they want you to convert your short term debt into a long term one? you will be paying for the loan etc over the next 20years (or however long is left on your mortgage term). I dont know what you spent the loan on, but would you still want to be paying for it in 2020?

Also, your LTV will go up (so instead of 66% it might now be 80%).

Have you a tracker mortgage, by any chance? Are the bank allowing you to keep the mortgage rate you are currently on?

I think we need more figures here: mortgage amount, interest rate & term remaining?
loan amount (21K), interest rate & term remaining?
 
As before. What is the current mortage amount, term and interest rate and what is the new banks term and interest rate + will they pay the legal fees.
 
If the bank offers you something voluntarily I would treat it with extreme caution.
They are there to make money from you.

As stated above you will now be paying back the “bit of short term debt” (26k is more than a bit IMO) over the remainder of your mortgage.

Why not ask them to lump your short-term debt onto the new mortgage for a shorter period but at the reduced interest rate you get with a mortgage.

I.e. Mortgage over say 20 years as normal
21k over first 5 years of new mortgage

This would save you money, but doubtful if banks do this any more, but they did during the boom times.
 
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