student loan vs to borrow of your mortgage.

Hi i am a mature student and will need at least 20,000 euro to cover my fees. i was wondering if I should get a student loan at approx 6.5% or to borrow off my mortgage? My mortgage is for 124k and i have paid one year off it (its over 25yrs). The mortgage is currently fixed for another 3 years, would I have to pay extra fees to borrow this extra money. Also i am not longer in full time employment (the bank doesn't know this) so would that matter?
thanks

anyone have any ideas?

Ignoring the fact that you want to top up, how are the mortgage payments being made? Is it a joint mortgage?

Based on the above answers I would consider a credit union loan perhaps or a loan from another financial institution. More info might solicite more responses to your post.

i was wondering if I should get a student loan at approx 6.5% or to borrow off my mortgage?

If you can do a mortgage top-up and pay the top-up over the same sort of term as the student loan rather than spreading it over the full remaining term of the mortgage (e.g. a number of years versus a number of decades) then it would most likely work out a lot cheaper in the long run.

My mortgage is for 124k and i have paid one year off it (its over 25yrs). The mortgage is currently fixed for another 3 years, would I have to pay extra fees to borrow this extra money.

Fixed rate mortgages normally involve penalties/fees if you break the fixed rate term. Normally this would be if you redeem the loan (in part or full) before the fixed rate term is up. I'm not sure if they would also apply in the case of a top-up.

What is the value of your house? If your loan to value ratio is low then your lender will probably look more favourably on doing a top-up even if you are only with them a year (i.e. the more equity you own in the property the stronger your bargaining position).

Also i am not longer in full time employment (the bank doesn't know this) so would that matter?

Obviously it would matter if you cannot afford to service the loan (existing or toppped-up)! How were you planning to fund the loan(s) and living expenses in the absence of a loan/top-up? Are you working part time? Do you get a grant?

i am renting rooms in the house which cover the mortgage repayments and i work part-time which just about covers living expences.

Is this tax free rent a room income under the €7,620 per annum threshold? Just so that you don't end up with an unexpected tax bill on top of your other expenses. Have you inquired with your lender about topping up the mortgage?

Equity Release (i.e. additional mortgage) I believe is the way to go. You will need to prove to your mortgage provider how you will pay both original and new mortgages. You could seek a moratorium for a short period on your new mortgage which should ease the cash flow burden. Obviously if you can show that your current studies will potentially enhance your medium/longer term income you should be able to convince your mortgage provider. A combination of moratorium and lower interest rate (than say a personal loan) may prove the answer in your case. One word of caution - make sure you really can afford to repay the mortgages - you don't want to put your home at risk.

Bank Manager

Have you been quoted 6.5%APR for a student loan?

I had a number of student loans in the past...the APR was a lot higher...there is not much choice out there in the student loan scene...you kinda have to feel grateful for whatever they will give you.

They may not even let you borrow 20K.

I had problems getting IR£7K in 2001. And had to have a guarantor. BOI - 10.8%APR Interest rate very high. I didn't have a choice at the time.

You don't have to draw down the whole amount at once. So I drew it down when I needed it in 1K sums.

But flexibility of a student loan is great. You don't have to pay back until you finish studying...which in my initial loan was going to be 2 years away.
It's easy to stop repayments...just say for example you finished a first degree and then worked for a yr or so, paid a bit of the student loan off ... if you went back to do a postgrad or so you could stop repayments for a bit...And if you do need a top up at any stage it is not that difficult to arrange.

This is what I did and it worked out well for awhile. But eventually I borrowed about €10K from my parents who suggested it paid off the student loan to them - interest free - so this was a much better deal...I didn't like the idea of borrowing from them but when I saw how much interest I was paying I reconsidered...

I have a BOI graduate loan for a car now APR 6.7%. Student loans in the north are at a better rate I believe but here there is not much on offer as there is no government student loan scheme.

Check out about getting a grant for fees and maintenance...
As an mature student over 23 you can earn up to 40K+ in the year prior to starting college and still qualify for free fees...more info on dublincity.ie website.

Best of luck.