Switching mortgage - some questions

B

BubbleWrap85

Registered User
Messages
17
1. Do I need to give notice to current lender? We are on a variable rate.
2. Is there a penalty/fee for paying a lump sum off the mortgage before we move to new lender?
3. Mortgage was initially taken out under 1 name, but now adding my partner. Does my current life assurance still count? I assume he needs to get his own as well, or do I need to adjust mine?
4. My life assurance seems low at €11 p/m. Is this the average?
 
1 and 2. No. You can pay off any mortgage at any time. With a fixed rate, there might be a penalty, but with a variable rate, there is no penalty.
 
BubbleWrap85 said:
3. Mortgage was initially taken out under 1 name, but now adding my partner.
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This doesn't make much sense in the way your phrase it.

You own a house with a mortgage.

Are you giving him half the house?

Why would he add his name to a mortgage and not the house?

Why would you give him half the house?

If you are not married, and you give him half the house, there might well be a gift tax (CAT) liability for him.

So please explain in detail what you are proposing to do and why. And give the figures as well.
 
BubbleWrap85 said:
4. My life assurance seems low at €11 p/m. Is this the average?
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What age are you and your partner? How much and how long is left on your mortgage?

€10 p/m is the minimum premium you could be quoted on a price comparison site, regardless of your age and the amount insured.
 
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We are together a long time. I initially took out the mortgage alone to avail of first time buyer benefit. As he contributes half to the mortgage, he requested to be added to it. We are not married, but we have plans down the line to be. We are looking for a mortgage of €170k over 19 years.
 
Corola said:
What age are you and your partner? How much and how long is left on your mortgage?

€10 p/m is the minimum premium you could be quoted on a price comparison site, regardless of your age and the amount insured.
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I'm 39. They are 48. We have 19 years left, but looking to shorten this by paying a lump sum off the balance.
 
BubbleWrap85 said:
As he contributes half to the mortgage, he requested to be added to it.
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Brendan Burgess said:
And give the figures as well.
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He/They would be stupid to be added to the mortgage - a mortgage is a liability.
Presumably he wants to be added to the title of the house and not just the mortgage.

You are running a risk of giving him/them a gift (half the equity in the house) on which he would pay Capital Acquisitions Tax.

This risk would disappear if you wait until you all get married.

Brendan
 
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