Mortgage top-up

38141

I am thinking about topping up my mortgage to buy another property abroad. The mortgage is now less than half the value of the house. Would the bank give me a top up of, say 60k, which still would not exceed the value of the house? And secondly, would they want the title deeds of my second property as security, or would they give it just with the deeds of the first house which they already have?

gerrycollins

the sly way is to quote home improvements or debt consolidation,we did it with no hassel but you may have to do a medical again and all your solicitor needs to do is witness you signing the papers,so long as you keep the top up in the original banking institution you first got your mortage with

Eoin

38141 wrote:

I am thinking about topping up my mortgage to buy another property abroad. The mortgage is now less than half the value of the house. Would the bank give me a top up of, say 60k, which still would not exceed the value of the house?

That obviously will depend on all your personal details (income etc), so quite hard for anyone here to give you a yes or no answer. They do seem to be throwing money at people these days. I presume you have stress tested the additional repayments to take into account the increased interest rates that are due in the next couple of months?

38141 wrote:

And secondly, would they want the title deeds of my second property as security, or would they give it just with the deeds of the first house which they already have?

I doubt it as you are mortgaging your current property not the new one. Also, if you were taking out a mortgage for the property abroad, then that mortgage provider would require the deeds to the property.

conor_mc

Do you need to secure this 60k against youur current home? If you could avoid that risk by getting a seperate mortgage, thats what I'd try to do. If the whole thing went down the swanny, you might lose your investment/foreign property, but at least your home would be safe.

Is this a holiday home or an investment property that you'll rent out? That could make a difference in what way to arrange the mortgage for tax etc.

38141

what I'm hoping to do is go travelling for a year or more, leave the job, rent the house, secure the money for the new house before I leave, and look out for a house while travelling.

m_stan

Shouldn't be an issue if you state its for home improvements, you have a good credit history and no other debts you don't mention here.

Personally I would seriously consider the impact of a further 2% increase in interest rates on your monthly repayments, as rates are on the up and a .5% increase is expected in June. I would also consider how much you know and don't know about the overseas market you are investing in. My bet is you know significantly less about that market and it's economy than you should do to make an investment like this.

Best of luck either way.

38141

The interest rate issue is worth considering. In reply to your remark on knowledge, I agree that information and research are obligatory when investing overseas, and I think that the time I have when travelling will allow me to give sufficient attention to all of the issues.

It's just something I'll be thinking about while travelling. I don't have any specific destination in mind yet but plan on 'keeping a lookout' wherever I go. One of the most important things is to ensure that the price being asked is a 'fair' one, as many locals in less-developed locations think they can charge, and receive, and number plucked from the skies. I will try to locate something with good growth potential and which is fairly priced. This all takes time and careful consideration. 'Knowledge is power', as the saying goes.

But at least I know now I should be able to acquire the necessary funds whilst not having a job or not having the title deeds to my new place before I leave. I want the money to be there when I need it.