Mortgage topup for renovations/upgrade question

[abc_xyz]

We are currently with UB and will need to upgrade the house at some stage over the next couple of years. Given that UB mortgages are moving to PTSB we're considering switching to Avant. Without the future topup I'm not sure it makes sense even if Avant are doing €1500 to switch at the moment (think I saw this somewhere else on the forum).

My questions:
- Do Avant do mortgage topups for house renovation/extension? (I had assumed all banks do this but maybe I'm wrong?)
- Does it make sense to move to Avant now or should we wait and assess when the fixed rate finishes or we actually need the additional funds.

Details: fixed at 2.2% with UB until Jun/2023. ~100k outstanding at ~20% LTV with 12 years remaining. I'd guess additional funds needed would likely be about 100k. Would be thinking about the 7 year fixed at 1.95%.

 

[Brendan Burgess]

With €100k left on your mortgage at this stage, I doubt it's worth the hassle of moving.

OK you will save 0.25% or €250 a year for 18 months and you will get €1,500.

I think you should wait until you have decided to trade up and deal with the new mortgage application and switch then.

Brendan

 

[Fahrenheit]

Avant will only release 50Ke on an equity release so ICS, which also offers a 1.95% rate, would most likely be your next best choice if you wish to borrow 100Ke for home improvements.

There is no cash back offer & 5 years is longest fixed term product it has. You'd have to provide builder's quotes for the works.

Haven offers a green rate(BERs of B3 & above) of 2.15% for its' 4 year fixed rate product. If your property is unlikely to have this BER rating until after the priposed works, then you'd draw down on a variable rate & submit the new BER cert on completion of the works along with a signed interest rate application form(where you'd opt for a 4 Yr fixed). The extra 100Ke would be issued out in stages on foot of interim certs from the architect. Haven, unlike ICS, have a 2Ke cashback facility for switcher cases.

Call UB and ask for a redemption figure. You might be surprised in that the breakage fee may be very low.


This is probably more info than you need at present but hopefully it helps!



justin.griffith@mortgagebrokers.ie