Borrowing money, loan or add to mortgage?

[Positively]

We need to borrow for a car and some home improvements. I'd say 50K. We have about 11 years on our mortgage and it's a tracker. Would we be best getting a seperate loan for these expenses or trying to add to the mortgage? We can afford about €350 a month payments for now but that will hopefully increase. We're in our early 50s. Thanks

 

[Monbretia]

You could possibly do a top up on the mortgage for the home improvements amount, unlikely lender would include car in mortgage top up, either way that would be a separate top up mortgage to the original and on todays rates, other alternative is you could (or bank may require) a total remortgage of the old plus new amount into a brand new loan again at todays rates losing tracker in process but depending on rate and what's available now that might not be a big deal. Would give you option of totally moving mortgage to another lender if a better deal available.

I'd be slow to put a car onto the mortgage over the 11 yr term even if you can unless absolutely no alternative as it's unlikely you will still be driving that in 11yrs but will still be paying for it but of course that depends on your circumstances or what other options that may be coming like pension lump sums etc.

Simplest quickest solution if probably a Credit Union loan, don't know what their rates are at the moment so not sure if comes within your repayment budget, worth checking though.

 

[Positively]

Thank you for that, I'll try the credit union for the car loan and a seperate CU loan for home improvements since i think theyre a different rate. I don't think I should move off the tracker at this point.

 

[cloughy]

what would the repayment be on 50k borrowed, if not at mortgage rates but say 7/8% thats your 350 per month that you have available just to pay the interest, repayments on 50k for say 10 years at 6% would be over 550 per month, at 5% its 530 pm, so cant see how you can repay it with only 350 extra available, unless you extend the term of your home mortgage, but bank unlikely to do that at tracker rates,