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Top up loan with another bank

  • 07-12-2018 11:18am
    #1
    Irishcrx
    Registered Users, Registered Users 2 Posts: 2,861 ✭✭✭


    Hi ,

    I am currently a PTSB customer , I currently have an outstanding Home improvement loan with PTSB with 18.5k outstanding and am looking to apply for a top up loan for further improvements , however their current interest rates are poor and a such I have been looking at other providers such as BOI , KBC an Ulster Bank

    I would like to apply for 32k including clearing the outstanding balance owed to PTSB and use the remainder for improvements.

    Does not having a current relationship with BOI damage my chances of approval as opposed to my own bank? I'm worried that if I go this route and get rejected that will effect my credit history to apply for another provider or in the future.


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    Irishcrx wrote: »
    Does not having a current relationship with BOI damage my chances of approval as opposed to my own bank? I'm worried that if I go this route and get rejected that will effect my credit history to apply for another provider or in the future.

    I'm pretty sure that getting turned down for a loan is not an 'event' that someone can put on your credit history.

    If you have a motor insurance policy cancelled or are declined a quote, you are obliged to declare that in future when seeking a quote from other insurers but when it comes to credit, you can ask one bank after another until you get a loan and none of them need be aware that you've been turned down multiple times. Though the first question that any bank will be asking themselves is: 'why hasn't your current bank given you the loan?' so you'll be on the backfoot from the start, as you've implied in your question above.

    You'd need to be offering a prospective lender some kind of security for a 32K loan. Is your mortgage with PTSB?


  • #3
    Irishcrx
    Registered Users, Registered Users 2 Posts: 2,861 ✭✭✭Irishcrx


    Yes my mortgage is with PTSB as is my current loan , the reason I won't ask them is simple their rates are much higher than what the other banks are offering.

    I think when you apply for a loan the credit check the bank carried out will show up on my ICB meaning other lenders will see that the bank did a credit check but didn't lend so that's as good as...

    I don't fear rejection so much, I have a good income and good credit history with no missed payments.


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    Irishcrx wrote: »
    Yes my mortgage is with PTSB as is my current loan , the reason I won't ask them is simple their rates are much higher than what the other banks are offering.

    Have you considered your local credit union? Most of them are flush with cash and are mad keen to lend.

    Edit: or consider moving your mortgage. Another bank may waive the legal fees and give you the top-up you're looking for. Obviuosly provided you're well into positive equity.
    Irishcrx wrote: »
    I think when you apply for a loan the credit check the bank carried out will show up on my ICB meaning other lenders will see that the bank did a credit check but didn't lend so that's as good as...

    I see what you mean. Though it could simply mark you down as a financial 'tyre kicker' who asked multiple banks at the same time for a loan.


  • #5
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You should consider switching your mortgage - KBC are currently offering very competitive fixed rates for example 5 year fixed for a loan to value of less than 60% for 2.60% and they will give you 3k cash back that will more than pay for your legal fees.

    The fact that permanent tsb made an enquiry on your ICB wont affect you. Once you have a clean record you should not have a problem and if you want to check you can apply online at www.icb.ie.


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