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Transferring a mortgage.

  • 04-02-2004 5:18pm
    #1
    gazzer
    Registered Users Posts: 4,051 ✭✭✭


    Folks.

    Hopfully someone out there can help me with a query i have.
    Basically I bought a house under the affordable housing scheme two years ago. The market value of the house was 170000 euro and i got it for 125,000. If i ever sell the house i have to pay a clawback to the council. At the moment the house is worth 230000 euro.

    Over the last couple of years i have also gotten a couple of bank loans and a credit union one. Anyway in total these come to 25,000. I was thinking of remortgaging in order to add my loans to my mortage and so have one payment a month.

    At the moment my mortgage is 650 per month and my other loans come to around 400 per month. If i remorgage and add the loans my total repayment will come to 700 a month. Now i know that this will mean my bank loans will be streched out over 25 years instead of the 5 years they are at the moment, but at the moment financially i could really do with amalgamating everything.

    My questions are has anyone out there ever transferred a mortgage from the council under the affordable housing scheme to a bank/building society.?? How easy was it, what was the extra cost involved etc etc.?? As far as i know if i transfer the mortgage i will have to transfer the amount of 170000 euro (ie. the original market value not what i got the mortgage for).

    Secondly would it be better to release the equity on the house instead.??

    I know i should really be ringing around different places to get this information but i just wanted to see if anyone here had done it first... thanks in advance.


Comments

  • #2
    skywalker_208
    Registered Users Posts: 1,350 ✭✭✭skywalker_208


    mite be worth visiting a financial adviser or someone similar when you are talking about big dollars like that...


  • #3
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    I can't answer your specific questions re. the affordable ownership scheme. I guess the first point of contact would be your local council. You might get some answers on Askaboutmoney.com also.

    Note that loan consolidation/remortgaging is generally regarded as useful only as a once-off exercise. You be paying out additional interest to the banks in the long run. Most importantly, you need to take whatever lifestyle changes are necessary to ensure you don't start piling up the debt again with more fresh loans and end up in a never ending spiral of debt.


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