Mortgage Top Up Query

Donnie

Registered User
Messages
57
Hi all,

In a 4 year fixed mortgage rate at 2.6% with UB and fixed rate expires in April 2022. Will decide at the time what to do and if a switch of lender is required which it probably will need since UB is exiting the market.

Will be looking to see if I can get a top up mortgage in order to fund a home renovation plan.

However my query is more in relation to what does a lender consider savings or equivalent as part of a mortgage application or mortgage top up application? I have about €70k in savings but its a mix of cash in current account, deposit account, bank investment account product, credit union account, Stock portfolio in Degiro.

Also what payments on a bank account statements are big red flags for a lender such as online betting transactions or perhaps regular standing orders to degiro trading account ?

Thanks
 
It doesn't matter where your savings are, but I'd suggest you keep it as simple as possible, to make it easier to assess your application.

Imagine you're in underwriting in the bank. You've 2 applications on your desk. Application 1 has a current account and a savings account to look through.
Application 2 has statements from 4 or 5 different accounts with different banks, and a few brokers for investments.
Which one would you choose to look at first?

Large regular transfers to gambling would be red flag.
Degiro will be fine so long as there's an investment to show for it.
 
It doesn't matter where your savings are, but I'd suggest you keep it as simple as possible, to make it easier to assess your application.

Imagine you're in underwriting in the bank. You've 2 applications on your desk. Application 1 has a current account and a savings account to look through.
Application 2 has statements from 4 or 5 different accounts with different banks, and a few brokers for investments.
Which one would you choose to look at first?

Large regular transfers to gambling would be red flag.
Degiro will be fine so long as there's an investment to show for it.
Thanks RedOnion and I called UB and they confirmed the same
 
Just following on from this, does anyone have any experience of getting a CBI exception in order to get a top up mortgage from existing mortgage lender or from a new lender or lenders?

In short we are looking for a loan of €150k to fund a home renovation project, which will dd to the value of the property and possible the best way to do this with lower repayment amounts would be to get a new or top up mortgage. However our circumstances have changed as only one of us in the household are working we are restricted on how much we can borrow given the CBI 3.5 income rule but I was hoping we could qualify for CBI exception given the loan to value of the loan against the property. The LTV is about 42%.

Our current gross basic annual salary is €90k, on average based on past 2 years have a gross bonus per year of €12.5K. In addition as we have 2 child dependents we would also be in receipt of €3,360 per year as child benefit. We have no other existing loans, car finance etc apart from a credit card, and where which we clear the balance every month.

Given the LTV, we are hopeful there may be a solution from one lender or a variety of lenders where we could source an amount of €150k to finance the home extension. We can display that we are able to afford the re-payments given the savings we are putting away each month at present.

Does anyone have any guidance or experience of this or can a few loans be taken out with various lenders in order to achieve the €150k that we require?

Thanks
 
Don;t know about getting an exception to the income rule but financing it with more than one lender is an expensive way to attempt as you can only have one house I presume therefore the mortgage lender has the deeds and any other lender is not going to give you mortgage rate for borrowings. Anything else you take out is going to be unsecured debt so at a higher rate unless you have something else to offer as security.
 
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