Switching mortgage providers and getting a top up loan

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gazzer

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Hi.

I am planning to switch mortgage providers now that I am out of my 3 year fixed rate with PTSB. Kbc seem to be the best option but I am wondering if they would do a top up loan for home improvement and to pay off my car loan of 9k My mortgage payment is currently 1150 but if I switch to KBC It would be 1010.

Mortgage is currently 140k and house is valued at 240k. There is 14 years left on the mortgage. Was looking to get a top up loan of 25k but with the %, saving on switching my mortgage I would continue to pay the same monthly mortgage of 1150. Are banks entertaining this at the moment.

Thanks
 
they'll lend you whatever you ask for, subject to their loan criteria (salary, LTV etc). The remaining value of your existing mortgage is irrelevant to them.
 
Hi Gazzer I switched to KBC and got a top up for home improvement.

They loaned to a maximum of 80% LTV and I had to satisfy all of their usual requirements
However I had to provide invoices and quotations from the builder

I don't know about the car loan, it doesn't sound like something a bank would be keen to roll into a mortgage
 
I asked KBC this yesterday as I am in the process of switching and wanted a little extra to cover the breakage fee from BOI.
They told me they wouldn't let me borrow the breakage fee and I could only borrow the amount owed.
I asked could I if I wanted to do home improvements and they said I'd have to reapply and it would be drawn down through the solicitor when I provide invoices, receipts,etc

Was wondering does this differ from bank to bank or do some banks allow you to borrow more than what's owed?
My LTV is under 60% so I had hoped I could use the equity in the house
 
WellJoe said:
I asked KBC this yesterday as I am in the process of switching and wanted a little extra to cover the breakage fee from BOI.
They told me they wouldn't let me borrow the breakage fee and I could only borrow the amount owed.
I asked could I if I wanted to do home improvements and they said I'd have to reapply and it would be drawn down through the solicitor when I provide invoices, receipts,etc

Was wondering does this differ from bank to bank or do some banks allow you to borrow more than what's owed?
My LTV is under 60% so I had hoped I could use the equity in the house
Click to expand...

did you include the extra in your initial application to KBC?

If I want to borrow say 300K to buy a 600K house and meet their criteria for a mortgage, why would it be treated differently if I wanted to borrow the same amount to pay off an existing 250K mortgage on the same house and have 50K leftover for renovations. For KBC it's exactly the same proposition, it seems weird.
 
Bank policies! They are often weird and wonderful, if the purpose of the extra borrowing doesn't fit in their policy then you don't get it regardless of whether or not the loan is the same end proposition, it's how it has always been in banking except for when there was bad practices back in the boom and you could borrow extra for anything!

I always remember being young and in need of a loan for a mobile home to live in temporarily, bank policy stated they didn't lend for mobile homes, I couldn't understand it as to my mind surely the question was whether or not I would pay it back and now what I was doing with it. Anyway luckily I met a good bank manager who decided I was a good risk and suddenly my loan was for a 'car', I got the loan, bought the mobile home, paid back the loan, all good, but it's all in the way it's phrased! Renovations would probably get you extra money, might need a few estimates etc.
 
shweeney said:
did you include the extra in your initial application to KBC?

If I want to borrow say 300K to buy a 600K house and meet their criteria for a mortgage, why would it be treated differently if I wanted to borrow the same amount to pay off an existing 250K mortgage on the same house and have 50K leftover for renovations. For KBC it's exactly the same proposition, it seems weird.
Click to expand...

I assumed putting the cost of breakage on top of my existing mortgage wouldn't be a problem. I applied to borrow the balance of my mortgage and what I estimated my breakage fee to be. When I got my approval in principal, it was only for the balance of the mortgage.

Agree with Monbretia's comments above
 
WellJoe said:
I assumed putting the cost of breakage on top of my existing mortgage wouldn't be a problem. I applied to borrow the balance of my mortgage and what I estimated my breakage fee to be. When I got my approval in principal, it was only for the balance of the mortgage.

Agree with Monbretia's comments above
Click to expand...

If you wait a month or two after approval you'll have paid off more principal on the current mortgage and can still drawdown the initial balance that you applied for to switch, so the difference between the two will likely cover the breakage fee. This is how it worked out for me on a previous switch, though the delay then was on the bank's/solicitor's end and not some cunning plan on my part.
 
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