Top Up Advice

Hi there,

My wife and I took out a 200k mortgage over 5 yrs fixed at 4.9% for the first 5 years for a self-build last year. We now need approx 50k to finish the house off. Obviously we should have went with a 250k original mortgage but didn't budget properly!
The house will be worth over 400k when completed.
What is our best option now?
Any suggestions greatly appreciated

StevenC said:

My wife and I took out a 200k mortgage over 5 yrs fixed at 4.9% for the first 5 years

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€200K over 5 years - that's a very short mortgage term!?

People frequently underestimate self builds. Is your original mortgage fully drawn down? A top up will depend on your eligibility for an increased mortgage and your ability to service the increased repayments. If your multiples add up and you are eligible for the increase, contact your lender/broker and apply for the top up. Don't forget to factor in your increased life assurance, house insurance and legal fees.

Clubman - Sorry, that should have been 25 years!

PM1234 - Yes the original mortgage is fully drawn down

StevenC said:

PM1234 - Yes the original mortgage is fully drawn down

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You're essentially applying for a second mortgage. Contact your lender/broker if are eligible for the increase (taking into account the higher interest rates) and can afford the repayments.