LTV on top up mortgage

M

Mandub

Registered User
Messages
15
Apologies in advance if this is posted incorrectly or already answered.

I am looking to top up my mortgage by c.€100k for an extension. Currently with KBC (2.3%) with €245k outstanding.
KBC are still quoting new business but the LTV would need to be 80%. The house would currently value at c.€350k+ I'd imagine (purchased for €300k).
Do other lenders lend up to 90% LTV for a top up? Was considering the AIB green mortgage as currently have all accounts with them.

Thanks.
 
You want to borrow €345k on a house worth €350k + say about €50k = €400k
That is 86%

And if the extension costs more than €100k which it probably will, you could be in deep trouble.

How urgent is the extension?

It would seem to be a better strategy to start saving hard and funding a good bit of it yourself or waiting to see if house prices rise so that the LTV will be more acceptable.

Brendan
 
Thanks Brendan.
It's not super urgent, and soon to be received quotes could decide that pretty quickly!

I'd hope any works costing €100k would add more than €50k to the value of the house and therefore reduce LTV or is that wishful thinking?
Do AIB go up to 90% on top ups do you know?
 
I don't know.

But as a general financial strategy, you should not be operating at the limits.

If things go wrong, you get stuck with an unfinished building.

It sounds as if you can't afford it at the moment. Wait until you are comfortable with the financing.

Brendan
 
Brendan's assertion that the value might only go up by c.50Ke is correct in my view.

Past cases I've seen would indicate that for 2e you spend on a refurb you get a value uplift of 1e(roughly).

On LTVs above 80% - AIB's green rate is 2.25%(5 yr fixed) & Haven's is 2.15%(4 yr fixed).

I'd have to double-check but I don't think Avant(which charges 2.15% for fixed rates) will lend against a future value of a property so it may not be a runner with this lender.

I don't know what your income level is so I can't comment on affordability.

As an existing mortgage holder, you will have to qualify for an exception if you are seeking a mortgage of more than 80% of the value of your property - which I think will be the LTV of your property even after the works.

Cental Bank limits apply once you are seeking to switch your lender & increase your borrowings - the limits(both the 80% LTV & 3.5 times salary) don't apply for straight switchers.

I hope this helps.




justin.griffith@mortgagebrokers.ie
 
Thanks - very helpful.
 
You must log in or register to reply here.
Menu
Log in
Register