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using mortgage as security on personal loan

  • 04-10-2011 10:25PM
    #1
    [Deleted User]
    Posts: 282 ✭✭


    do you have to have a mortgage a certain amount of time to do so and how does it work? thanks


Comments

  • #2
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    tnynll wrote: »
    do you have to have a mortgage a certain amount of time to do so and how does it work? thanks

    You can't use a mortgage as security at all :D

    If your house is worth €200,000 and your mortgage is €50,000, you may be able to "release the equity" (€150,000) by taking out a personal loan and securing it on your house. This was probably popular during the boom years but banks are less likely to entertain it now. (my guess, never looked into it)


  • #3
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    Equity release may be an option but a mortgage as security is like saying if i default on a personal loan you can have my bigger loan for the house.

    We get what you mean though by using the property itself as security. This will depends on equity available on the property and ultimately your ability to repay the personal loan because if you cant do this then its an issue itself.


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