loan for an extension

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beldin

Registered User
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Hi
Just a query on what would be the best avenue to go here.
Looking at borrowing about 15K for an extension with the intention of paying it off next year when SSIA money comes in. I don't really want to be saddled with major repayments this year although will be able to do normal repayments.
Don't want to add on to the mortage as there was a lot of hassle with EBS last year and it is all still fresh in our minds.
thanks
 
beldin said:
Don't want to add on to the mortage as there was a lot of hassle with EBS last year and it is all still fresh in our minds.
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If you have problems with the EBS that can't be rectified/circumvented (or even if they can!) then why not switch to a better/more organised/cheaper lender that will subsidise or subsume the switching costs and top-up (preferably repaying the top-up over a similar term to that on the alternative unsecured loan that you're considering)? Secured owner occupier mortgage borrowing is most likely the cheapest source of credit by far so don't cut off your nose (i.e. forego the opportunity of a mortgage top-up) to spite your face (i.e. the EBS).
 
Have you thought about a with EBS? I know you have had hassle with them before but it looks very attractive and you could pay it off next year.
 
If it's a choice between a mortgage top-up or another loan (even Lifechoice) both repaid over one year or whatever then surely the former will always beat the latter on price (assuming no major additional mortgage protection life assurance cover or other ancillary costs)?
 
Hi
thanks for the reply , well actually the problem was with life cover , I had a minor medical problem around the time of the mortage and EBS went into a complete tizzy. The life insurance company said no cover until it was investigated which would have taken upto 6 months.
EBS actually went so far as to say we couldn't have the mortage. This was a day or so after we had been expecting the cheque so it kinda was a kick in the teeth. Eventually we got the cheque but it is a can of worms I don't fancy opening again.
 
Might seem like an obvious solution but anyway-any chance you could wait until you have the SSIA money in hand before starting the extension?

Or could you go for a variable rate loan over say 5 years, make the regular repayments until your SSIA matures, and then repay the full amount.

One option you may want to look into is the fixed rate loan from Tesco (currently 7.5% APR), which according to their website, does not lead to any penalties for early redemption, but best to verify this yourself.

The repyments would be around €299 per month.
 
CCOVICH said:
Might seem like an obvious solution but anyway-any chance you could wait until you have the SSIA money in hand before starting the extension?
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I suspect it will be nigh on impossible to get a builder once the SSIA's start coming on stream, given the likely spurt in extensions & conservatories. We opted to get some kitchen work done now for exactly that reason.
 
RainyDay said:
I suspect it will be nigh on impossible to get a builder once the SSIA's start coming on stream, given the likely spurt in extensions & conservatories. We opted to get some kitchen work done now for exactly that reason.
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Yes I had thought of that alright. Maybe you could make an advance booking, with a deposit given to secure a date in the future (let's not make this thread about getting builders to come on time etc., I'm sure it's better reserved for LoS!).
 
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