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Financing the work

  • 02-06-2021 9:19pm
    #1
    Registered Users Posts: 825 ✭✭✭ The chan chan man


    Hi,

    Hopefully in the right place... but for say €60ks worth of extension and refurb/furniture etc, am i best to remortgage or take out a loan? What do most people do? Current mortgage is about 250k remaining over next 20 years.

    Thanks


Comments

  • Registered Users Posts: 10,929 ✭✭✭✭ Calahonda52


    whats the current LTV on the house?


  • Registered Users Posts: 825 ✭✭✭ The chan chan man


    House worth about 380k, thanks


  • Moderators, Home & Garden Moderators Posts: 10,101 Mod ✭✭✭✭ BryanF


    suggest you talk with your bank. This is the construction forum, the mods can move this query to the banking forum if you want?


  • Registered Users Posts: 10,929 ✭✭✭✭ Calahonda52


    250/380= 65%
    310/380 = 82%
    So bank will look at a % somewhere in between, maybe 75%, they wont add the full 60k spend on to the 380

    The next question, for you, not for here, is what is your current mortgage repayment as % of your after tax income and what would it look like with 60K extra on board.


  • Registered Users Posts: 2,761 ✭✭✭ phormium


    Depends on your loan to value and the work being done.

    If you have a low LTV at the moment and the extra doesn't push you over the 80% which is probably the figure the bank will be using then you may be able to do a simple top up on the mortgage which is a separate loan to original but runs for same term. Usually involves no legal fees bar maybe an up to date valuation.

    If it total loan is too high LTV for a top up then you're looking at a full remortgage with valuation, legal fees etc, will probably be limited to stage payments and will need to provide certs of compliance so need professional supervision (which you should get regardless of loan or not).

    A straightforward term loan is going to be the most expensive option rate wise but quicker simpler payout.


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