Homeloan Top Up / Release Equity / Remortgage ??

[JL77]

Looking for some advice -

I took a homeloan out to build a house 11 years ago. I currently owe 23,000. However the house is now worth at a minimum 350,000 and a maximum 420,000. I have recently borrowed 30,000 from a CU (8.3%). I am thinking that I would be better off consolidating my loans - this would work out much cheaper for me.

I currently have a homeloan with AIB (23,000 remaining).
Would I be better off topping up on this homeloan or remortgaging or releasing equity?

Also I borrowed the money to purchase a boat - would I be better off telling the bank that I need the money for home improvements?

Any advice would be greatly appreciated.

 

[Sarah W]

The lender's aren't really interested in why the loan was taken out, only that you have the ability to repay it. You should ask AIB what rate they would charge on a top up - you could get 3.45% from Ulster Bank on the whole loan on their fees free remortgage but I think the minimum loan for that is €65,000.

Sarah

www.rea.ie

 

[Confusion]

A top up on your mortgage would cost you more in the long run in terms of payback, But it does make sense if you are going to pay it of early. You avail of lower rates, but this is on the understanding that you put some future lump sums towards the loan and repay it alot quickier than say the 15-20 year term that you take it out for.

 

[irishpancake]

Why not switch to BoSI Tracker, reduced rate for 2 years (0.55% below tracker.

**The Tracker rate for LTV <=75% is 2.95% for the initial two years, and a goto rate of 3.50% (APR 3.44%) for the remaining term. The Tracker rate for LTV >75% is 3.20% for the initial two years, and a goto rate of 3.75% (APR 3.70%) for the remaining term. **

€53k (€23k + €30K) over 9 years (assuming 9 out of 20 left) :

1st 2 years monthly repayment = €559.37

thereafter, assuming no rate increases = €572.79

[broken link removed]

Switch to Bank of Scotland (Ireland) and we will pay up to €1,000 towards your legal or title insurance costs.

Valuation Fees (which normally cost approximately €150) will be refunded to you on completion.

Note: You would probably have to arrange suitable Mortgage Protection for the increased amount.