Chances of being granted a top-up loan?

Enilorac

Hi all

Have an exisiting loan with BOI (originally for €15k) which will finish next August. Not missed a single payment on this. Mot missed a single payment on any of the important stuff.
In a a secure job (thank goodness!) but currently paying both mortgage & rent (on a house we're slowly renovating, and another one we're currently living in).
As you can imagine this is starting to bite...we're living in the overdraft essentially, whilst presently meeting all bills & living costs....but only just,and by the bare skin of our teeth!
OH is self-employed, with hardly anything coming in right now.

Would really like to ask for a top-up loan of another 15k, so we can push on faster with the renovation, finish the house off (not that much left to do really), and then be in a position to drop the monthly rent payment.

Going by the current rates offered on the BOI website, a fresh loan of the same amount, over the same term would currently have lower monthly repayments than we're paying on the existing loan, even if we chose the 'fixed' rate.
If we were granted the top-up loan, would the monthly payments reflect this, and come down?

And I guess, the big question is, given the current econoic climate, if we asked for the top-up are we likely to receive it?

I know no-oneon here can say for sure, too many variables I suppose, but happy to offer more info if required (within reason)...but worried that being turned down for the top-up loan will reflect badly in the future...do things like that stay on your banking record?

matt70iu

Enilorac wrote: »

Hi all

Have an exisiting loan with BOI (originally for €15k) which will finish next August. Not missed a single payment on this. Mot missed a single payment on any of the important stuff.
In a a secure job (thank goodness!) but currently paying both mortgage & rent (on a house we're slowly renovating, and another one we're currently living in).
As you can imagine this is starting to bite...we're living in the overdraft essentially, whilst presently meeting all bills & living costs....but only just,and by the bare skin of our teeth!
OH is self-employed, with hardly anything coming in right now.

Would really like to asked for a top-up loan of another 15k, so we can push on faster with the renovation, finish the house off (not that much left to do really), and then be in a position to drop the monthly rent payment.

Going by the current rates offered on the BOI website, a fresh loan of the same amount, over the same term would currently have lower monthly repayments than we're paying on the existing loan, even if we chose the 'fixed' rate.
If we were granted the top-up loan, would the monthly payments reflect this, and come down?

And I guess, the big question is, given the current econoic climate, if we asked for the top-up are we likely to receive it?

I know no-oneon here can say for sure, too many variables I suppose, but happy to offer more info if required (within reason)...but worried that being turned down for the top-up loan will reflect badly in the future...do things like that stay on your banking record?

That would depend largely on your payment history but more so on any other current debts you have. If you have say a credit card here and a loan there, you're not very likely to be granted the top up.

If your all clear on that front, they are more likely to give it to you. I applied for a top up loan with Boi recently. They gave it to be but asked questions I never expected to be ask and I have to say, they weren't happy to give the money to me either.

The days of the banks throwing money at people are well and truly over:)

drunkmonkey

You already have a line of credit with the 15k Loan, you should be able to use the same line of credit that's open to draw down more on that 15k loan that you already have in place, I don't think you'll require a new loan.

Anomic

Dont think that is correct Drunkmonkey, what you are talking about is a revolving credit facility and normally only applies to businesses.

If its a personal loan , once its repaid ,thats it. You would have to reapply, it really depends on your income and affordability. It makes sense if the loan would mean ye can move into new house & stop paying rent. Altho might be better to look for a top up on your mortgage, as the repayments will then be in line with the term of the mortgage. If you apply for a personal loan , term will be significantly shorter & monthly repayment higher.

Either way , id suggest contacting your bank and see what they think.

Enilorac

Thanks all for your replies

matt70iu wrote: »

That would depend largely on your payment history but more so on any other current debts you have. If you have say a credit card here and a loan there, you're not very likely to be granted the top up.

No other loans (other than mortgage) and we both cut up our credit cards a couple of years ago.

So hopefully no worries there.

Payment history on both loan & mortgage should be impeccable.

matt70iu wrote: »

If your all clear on that front, they are more likely to give it to you. I applied for a top up loan with Boi recently. They gave it to be but asked questions I never expected to be ask and I have to say, they weren't happy to give the money to me either.

Good to hear thanks, fingers crossed we can achieve the same result.
I won't ask you to divulge the unexpected questions...but hopefully its nothing too off the wall! :eek:

Anomic wrote: »

If its a personal loan , once its repaid ,thats it. You would have to reapply, it really depends on your income and affordability. It makes sense if the loan would mean ye can move into new house & stop paying rent. Altho might be better to look for a top up on your mortgage, as the repayments will then be in line with the term of the mortgage. If you apply for a personal loan , term will be significantly shorter & monthly repayment higher.

Either way , id suggest contacting your bank and see what they think.

We've already tried the mortgage top-up route, by way of a casual request...but like many folks, the mortgaged house is presently in negative-equity, due to the current climate, perhaps even more so because its not currently habitable...so that's a dead-end route.

Have an appointment for a 'chat' on Monday....wish us luck.

Been a few years since I applied for the previous loan...assumung all is well, and they do deign to grant the loan top-up, how quickly do they release the money?

Enilorac

Just to update, incase anyone else is in a similar situation.

Went in Tuesday (12th) in the end, as the "man who can" wasn't available on Monday, to inquire about topping up the loan
Got given the rates on a few different amounts....eg 12k, 13k, 14k, 15k etc,
The way it worked for us was to start a new loan, and add on what was still outstanding on the original loan, so for instance, if we chose the 12k loan, it would actually be e.g. 12k + 3.5k = 15.5k.
We were asked to phone in on Weds (yesterday) if we decided to go ahead with it,and tell them which amount we had chosen.

When we phoned on Weds, before we even told them how much we wanted, we were told it was pre-approved regardless of the amount we asked for, up to 25k.

Went in this morning to sign on the dotted line.

The money will be in the account tomorrow.

No scary questions....ridiculously easy if any thing, expected a blood from a stone type affair...but happy days....roll on the finished house project, and no more rent payments!

moonshadow

Good for you,press on and the best of luck with your project,thats the way things should be!