Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Want to renovate house - overpay mortgage OR save in seperate account?

  • 19-11-2018 8:35pm
    #1
    jayjay2010
    Registered Users, Registered Users 2 Posts: 505 ✭✭✭


    So I want to renovate my house. My dilemma is:

    1. Do I overpay my mortgage, effectively using the equity as a bank account and then borrow against the property at a relatively low interest rate?

    OR

    2. Save money in a savings account. Then after the savings have built up, take out a personal loan?

    The problem is, I have lots of equity in my house (100k +) but for an equity release loan, the max I can borrow is 3.5 times my salary. And as I have a mortgage already (only 1 year old), I'm pretty much at my max so I am unable to use the equity in my house. Even thought my mortgage repayments are very affordable.

    Overpaying my mortgage will bring the capital down, and as a result SHOULD free up some borrowing room (provided the market value of my house stays the same or rises).

    This will be a 1-2 year long plan, but I want to start now and I'm not sure which route is best to take!


Advertisement