Switch Mortgage & combine short term loans

S

stressed13

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Hi all never posted before but just want an opinion.

Have existing mortgage with Ptsb switching to Halifax to get better rate (5.2% down to 5%) and given our short term personal loans we are to combining them to save on the interest although we have set it up and it has been agreed with the bank that there is one account for the mortgage (house value €625K outstanding mortgage €444k) which is one repayment and another seperate account combining all short term loans (value €70k) another seperate payment, both rates variable at 5% so at end of 5 years (or shorter as we intend to put extra money to short terms loans) we will be left with mortgage repayment only.

1. I want to know is this the best way for us get us out of our crazy short term debt - we could have combined it in the mortagage but figured this would end up costing us more although we would probably have extra money at end of each month.

2. Should we fix the mortgage rate and leave the short term variable what is the likelyhood of mortgage rates increasing at the moment.

Any other comments appreciated.
 
Hi Stressed13,

From your post it seems you have €514k of debt with your house valued at €625k so a loan to value of around 82%?
Can you confirm Halifax are offering a variable rate of 5% for this mortgage. I just looked at their website and their variable rate is 5.40%.

Do you have a loan offer in place from Halifax?
 
hi been at this for months now with broker and we queried up until the offer was sent out to us (just this week) that the 5% was still on the table and he said it was we will double check before we sign anything because current mortgage rate is 5.2% variable with Ptsb if offer has cahnged we shoudl just probably work on staying put for the minute.
 
Yep, make sure to check as the rate at PTSB isn't the worst in the world.
Are Halifax covering the costs of switching?
 
first thing we plan to do as soon as a copy of the offer comes through the post will be to check the rate, if its above the 5% don't think there is much point in switching is there? just go on the way we are look at repaying short term loans asap and using any extra cash at end of month to do that. Ideally we want to extend onto the house but want to get rid of short term loans first sop though this was the best way.

Broker is contributing €500 towards overall costs.
 
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