Can I add on to new mortgage to cover loan

P

paddi

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We are after getting mortgage from BOI this week. Property worth 135,000 and we got mortgage of 90,000. I have a personal loan with AIB for 16,000. Would it be possible for me to get 16,000 added on to my mortgage and use the cash to pay off the loan. Would a bank agree to this kind of thing?

Thanks for any help!
 
Unlikely these days but you won't know until you ask. Banks in general very slow to take on another bank's debt, bear in mind you will also pay interest over a much longer period as I presume the loan is much shorter term than the mortgage.
 
No bank is currently doing this type of top up mortgage. I'll avoid preaching, but it was predominantly this type of "debt postonement" that got us into the financial mess in the past! Personal loans should be payable over a short term to co-incide with the assocaited spend. It is not good financial practise to borrow long to cover short term spending requirements!
Rant over !!!!
 
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