Remortgaging

Potential-Monke

Hey all, quick background, i bought a house last december and owe around €165k on that. I also have a credit union loan with about €47k left on it. I'm paying €580 p/m on the mortgage (over the next 29 years) and €760 p/m on the CU loan (over the next 5 years).

Now, i know the better option would be to keep going the way i am, but i'm going to get cut in this upcoming budget (public service) and i just can't afford both, and i reckon putting the CU loan into the mortgage would spare up about €100 a week for me.

I know this would cost more in the long run, but my main question is can i remortgage with my current bank or do i have to change banks? I've googled all i can and all i can come up with is that i have to change banks, and i have to have paid off x amount on the mortgage (my house is worth €200k but i got a very very good deal).

Any advice would be great, before i start ringing around and get confuzzled by legal jargon...

stepbar

You don't give a lot of info TBH.

glic71rods46t0

Potential-Monke wrote: »

(my house is worth €200k but i got a very very good deal).

Two problems with what you have outlined:
1. your assertion that your house is worth 200K but you got a very very good deal sounds like you got a deal that was below asking price but might be the actual market price. Remember, other buyers will be looking for the same very very good deal that you got in this buyers market. Maybe your purchase price is the market price?
2. Even if your property is worth what ypou think it is, there are no lenders offering debt consolidation mortgages with loan to value over 80% never mind 108% that you are looking for, even if your property value is correct (which I would question)

amytomjerry

Unfortunately, things are very different today. Banks are no longer interested in remortgaging to cover debt. I have a mortgage of 100,000 and tried to remortgage/get a top up of 20,000 to clear other debt but the bank didnt want to hear tell of it.

chris85

Its a no go to be honest OP. The loan to value ratio would end up higher than 100% where as the bank would be seeking an 80%-85% ratio. No other bank would take this on and this rate. What value was the property put at when the valuer was in.

Thats a massive CU loan. I worry for your situation where you have more going on a loan than your mortgage. Thats a bad thing as a rule of thumb and it appears its catching you now. I wont judge but I hope with was a necessity.

Potential-Monke

Thanks to all for your replies. With regard to the CU loan, it was 25k a year ago, most of which was necessity, with about 5k on frivilous activities. But then i had to top that up to get the deposit for the house...

As for the price, it was less than the market price, simply because the owner just wanted rid of asap.

I was hoping i wouldn't hear the information provided by ye, as i would be in such a better position in regards to repayments if they did consolidate. I guess i'll just have to motor on the way i am...

Cheers again everyone!

rainbowtrout

Potential-Monke wrote: »

Thanks to all for your replies. With regard to the CU loan, it was 25k a year ago, most of which was necessity, with about 5k on frivilous activities. But then i had to top that up to get the deposit for the house...

:eek:

I'm not sure which I'm more shocked by - that credit unions were still giving out loans for deposits last year or that your bank gave out a mortgage without you having a deposit.

Maybe you could ask your CU to extend the term of the loan for an extra year or two. You'll probably end up paying more in the end but it would reduce the repayment every month which is probably what you need right now.

I can't see the bank giving you a top up on the mortgage even if your house is worth 200k as you have outstanding debt of 212k