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'Topping up' a mortgage?

  • 13-12-2004 3:45pm
    #1
    Padraig Mor
    Registered Users, Registered Users 2 Posts: 9,610 ✭✭✭


    Just how easy is it to top up a mortgage? I need a few bob for a new car and was thinking of doing this rather than taking out a car loan - it's cheaper in the short run (not the long run). Have the mortgage about a year and there should be no problem with value of house etc.

    Has anyone done this before? Is it just a case of ringing up and asking for money or are there solicitors etc involved? I'm also thinking of switching my mortgage - would it be easier to top it up as part of this process?

    Thanks for any help!


Comments

  • #2
    threebeards
    Registered Users, Registered Users 2 Posts: 1,040 ✭✭✭threebeards


    Padraig Mor wrote:
    Just how easy is it to top up a mortgage? I need a few bob for a new car and was thinking of doing this rather than taking out a car loan - it's cheaper in the short run (not the long run). Have the mortgage about a year and there should be no problem with value of house etc.

    Has anyone done this before? Is it just a case of ringing up and asking for money or are there solicitors etc involved? I'm also thinking of switching my mortgage - would it be easier to top it up as part of this process?

    Thanks for any help!

    What lender are you currently with?


  • #3
    Padraig Mor
    Registered Users, Registered Users 2 Posts: 9,610 ✭✭✭Padraig Mor


    threebeards wrote:
    What lender are you currently with?

    First Active.


  • #4
    threebeards
    Registered Users, Registered Users 2 Posts: 1,040 ✭✭✭threebeards


    Padraig Mor wrote:
    First Active.

    The reason I ask is because some lenders won't allow you to top up for any reason except home improvements. First Active will let you top up for this purpose. They have a product called Utopia with which you can top up without having to use a solicitor. It's very quick and hasslefree. Is there any particular reason you're considering moving your mortgage and to where?


  • #5
    Padraig Mor
    Registered Users, Registered Users 2 Posts: 9,610 ✭✭✭Padraig Mor


    threebeards wrote:
    The reason I ask is because some lenders won't allow you to top up for any reason except home improvements. First Active will let you top up for this purpose. They have a product called Utopia with which you can top up without having to use a solicitor. It's very quick and hasslefree. Is there any particular reason you're considering moving your mortgage and to where?

    Considering moving it because I've just moved onto standard variable rate (about 3.55%) after 1 yr fixed. Can get cheaper elsewhere, so why pay more? Thinking of Ulster Bank; friend got 2.95% tracker from them. Would most likely get offer from UB and threaten to move from First Active if they didn't match it.

    When you say FA will let me top up for this purpose, do you mean the car?


  • #6
    threebeards
    Registered Users, Registered Users 2 Posts: 1,040 ✭✭✭threebeards


    Padraig Mor wrote:
    When you say FA will let me top up for this purpose, do you mean the car?

    Yeah, First Active allow that but AFAIK, UB will only allow a top up if it's for home improvements.


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  • #7
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    The important thing is to pay off the extra capital you draw down within three years or so. Otherwise you end up paying for a short-lived asset over 20 years, which is perfectly feasible, but clearly unsustainable (what will you do when you need another car?). This is the reason some banks might not let you do it. Be sensible and you'll be OK.


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