best deal for remortgaging?

S

scatriona

Registered User
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Hi

I am considering returning to full-time education for 3 years and am looking at re-mortgaging to fund my living expenses. I’ve estimated I need approx. 62k for 3 years living expenses in Uni (abroad).
My apartment is worth about 285k (today anyway!!)
I purchased it thru AH scheme 2.5 years ago so when I pay outstanding mortgage & clawback (based on above valuation), I need 210k to pay off the Council. (But I am looking for extra to fund my studies.)
Main bank I spoke to would treat my apartment as an investment property for period I am away, and will potentially offer a LTV of 85% i.e. €242k at 5.1% interest (tracker). I would rent out property for duration of my studies (approx. €1000 per month rental).

As I have zero experience in this, does above seem like the best/most I could get from a re-mortgaging package?
I assume they consider me risky as I will not be earning for 3 years (well, not significantly anyway).

Any thoughts appreciated!

S
 
You can re-mortgage up to 95% for college fees, assuming you're in permanent employment and earning enough to qualify for the loan at this point.

Liam D. Ferguson
www.ferga.com
 
Thanks LiamD

Does that vary from bank to bank/building soc. or is that 95% standard?

S
 
There's only a couple of lenders that will go as high as 95% for a re-mortgage including Bank of Scotland (Ireland). Most will stop at 90 or 92%.
 
Was that offer 5.1% APR or is the actual rate 5.1%?

You could get Investment rates on 85% LTV as low as 4.89 from Bank of Scotland , ICS or BOI (all fixed for 3 years which might suit you)
By the way - when calculating living expenses for 3 years have you taken account of the 1400 (approx) repayments and the 1000 rental income?).
 
irishlinks said:
Was that offer 5.1% APR or is the actual rate 5.1%?

You could get Investment rates on 85% LTV as low as 4.89 from Bank of Scotland , ICS or BOI (all fixed for 3 years which might suit you)
By the way - when calculating living expenses for 3 years have you taken account of the 1400 (approx) repayments and the 1000 rental income?).
Click to expand...

But 85% would only raise €32,000 for this poster - s/he says s/he needs €62,000?
 
irishlinks said:
Was that offer 5.1% APR or is the actual rate 5.1%?

You could get Investment rates on 85% LTV as low as 4.89 from Bank of Scotland , ICS or BOI (all fixed for 3 years which might suit you)
By the way - when calculating living expenses for 3 years have you taken account of the 1400 (approx) repayments and the 1000 rental income?).
Click to expand...

To answer your 1st qu, I'm not sure! Need to check that out! Thanks

I think the repayments were about 1028 based on Interest only so the monthly mortgage repayments & rental income almost matched.

Bank mentioned a personal loan in middle year 2 to cover the shortfall (32k vs 62k forecasted expenses) but obviously I'm reluctant as that interest rate is nearer 9%, hence looking for a larger re-mortgage package.

S
 
Re: best deal for remortgaging for returning to Uni?

hi,

The main bank I went to for a re-mortgage in order to return to Uni have said 'no', due to the risk of rental income not covering mortgage repayments in an emergency, as I'll not be working for the period of the course (3 yrs).
Is this the 'norm' or are some banks more sympathetic to ppl looking to do this. I would rather this option than a personal loan at a higher rate of interest.

any advice appreciated!?

S
 
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