Loan of €25000??? Where to ask? Top up mortgage?

toby2111

Hi!

My cashflow is very tight at the moment,have finance on car of €14000 and credit union loan of €7000 and a few little bits here and there.So looking to get €25000 loan to consoliadte all these into one,thus lowering my monthly payments(about €900 per month at the moment).Was thinking of asking for loan top up.I know this will stretch my debt over the length of my mortgage,meaning cost of loan far greater,but it should dramatically reduce my monthly repayments.Plus I will be able to actually live a little and not live like a hermit!With the budget cuts in December coming also,I really need to release a bit more cashflow.Or should I just get a 10-15 year loan with a bank?Will they even give one to me??Thanks

BuffyBot

I'd find it unlikely that a) they would do an unsecured loan for that amount and b) over that period.

Mortgage re-structuring might help, but that might also be a tough sell to the bank.

kmick

If the loan on your house is 100k and its worth nominally 600k Id say they would give it to you. If your loan is 500k then you have no hope. Just depends on what you can get it valued at. Could I suggest selling your car and buying a banger and clear the CU debt?

toby2111

Had a look on itsyourmoney.ie,checked the cost comparison section for personal loans.AIB seem to be the best for an amount that size,7.96% APR.So I went to aib.ie,typed €25000 over 60 months,which is their max, and repayments were €497.50 per month-not bad considering I'm paying over €900 now.But is it that simple?Do I just walk into any AIB branch and ask for €25000 personal loan?Cant be that easy can it??

BuffyBot

Of course not

You'll have to apply, provide proof of identity, income and possibly expenditure/existing debts so they can assess your application and decide on it.

Long Onion

Banks are exremely unwilling to re-finance existing debt at present (I work for one) so I think that you will find it tough unless you are extremely secure financially.

namloc1980

toby2111 wrote: »

Had a look on itsyourmoney.ie,checked the cost comparison section for personal loans.AIB seem to be the best for an amount that size,7.96% APR.So I went to aib.ie,typed €25000 over 60 months,which is their max, and repayments were €497.50 per month-not bad considering I'm paying over €900 now.But is it that simple?Do I just walk into any AIB branch and ask for €25000 personal loan?Cant be that easy can it??

As mentioned you need to apply etc....also not sure many Banks will be willing to refinance other institutions debts in the current environment i.e. the leasing facility and the Credit Union loan that you have, on an unsecured basis. Repayment capacity would be needed to be proven also.

....

kmick wrote: »

If the loan on your house is 100k and its worth nominally 600k Id say they would give it to you. If your loan is 500k then you have no hope. Just depends on what you can get it valued at. Could I suggest selling your car and buying a banger and clear the CU debt?

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Toots

kmick wrote: »

If the loan on your house is 100k and its worth nominally 600k Id say they would give it to you. If your loan is 500k then you have no hope. Just depends on what you can get it valued at. Could I suggest selling your car and buying a banger and clear the CU debt?

Only flaw with selling the car is that if it is on finance, ie hire purchase, the finance would have to be cleared before you get any money to pay towards the CC. Also with the way the 2nd hand car market has gone the amount owed on the finance agreement might be more than the car is actually worth.

toby2111

Thanks guys.
Yeh,I kinda figured it would be really hard to get a bank to give a Joe Soap like me any loan.What if I say its for home improvement?I know I'd be telling a bit of a lie but do they actually check to see how you use the loan?

BuffyBot

They could (and for home improvements probably would) - and if your found to lie, they could theoretically recall the loan for full, immediate payment as you misled them.

VB1962

Make an appointment to talk with somebody in your bank. Tell them your position - i.e. repayments of 900 per month approx, short term borrowings 21k plus etc - and discuss options to free up cashflow.

If you own a home:-
Nothing is certain but if you have good equity in your home, established repayment capacity and can show that you won't need any more finance for a number of years (3 or more, perhaps) then you have a reasonable chance around equity release through your mortgage provider.

If you DO NOT own a mortgaged property
You could seek to reschedule your existing loans a little bit - say stretch them over another 2/3 years and still afford the repayments then you'll find yourself much better off in the long run. Unlikely that the car loan people will push out the loan much (ref Toots and car values) but the Credit Union should certainly talk to you about a top up and term extension.

_Kooli_

toby2111 wrote: »

Thanks guys.
Yeh,I kinda figured it would be really hard to get a bank to give a Joe Soap like me any loan.What if I say its for home improvement?I know I'd be telling a bit of a lie but do they actually check to see how you use the loan?

Nobody here can tell you either way, because we dont know all your personal circumstances. Anyone telling you yes or no here is just guessing.
You need to go and ask the banks personally.