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Personal loan to a mortgage

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  • 06-09-2012 7:34am
    #1
    Shewhomustbe...
    Registered Users Posts: 484 ✭✭


    Hi, I hope this is in the right forum, apologies if there's another, I'm on my phone and figured banking was the right place!

    So, my question, does anyone know if it is possible to transfer a personal loan to a mortgage loan? Like everyone else my financial situation has changed, and not for the better, and my monthly personal loan repayment is causing me huge hassle. I've been paying it and I'm not in arrears but with the price of everything on the increase things are becoming very stressful. My loan is with BOI and my mortgage is with ICS. I haven't approached either yet as I thought I'd see if anyone knows if banks are actually being open to negotiation.

    Thanks so much for any feedback.


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    #2
    halkar
    Registered Users Posts: 1,256 ✭✭✭halkar


    You can try the bank if you are not in negative equity. Releasing equity was very common during celtic kitten times. Banks had a lot of monopoly moneys back then. Now they have no money I doubt they will be any use to you. You should check with the bank that has your mortage first.


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    #3
    phormium
    Registered Users Posts: 3,337 ✭✭✭phormium


    As above, unlikely, this is basically refinancing, something that has died with the tiger. If you are anywhere near negative equity there is not a hope, even if not it is still pretty unlikely.


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    #4
    okiss
    Registered Users Posts: 698 ✭✭✭okiss


    A few years ago the banks were allowing people to put a personal loan into there mortgage but I can't see them doing it now.
    If you are having problems with this I would do up a budget on the nca.ie website to see where you are spending your money at the moment & this may help you see where you could save money.

    I would then go to the bank and explain that you circumstances have changed and ask them if you could extend out length of the loan which would give you a lower payment each month but over a longer time period.
    If you are having money problems it is better to let the bank know asap so you can come to some agreement in regards to payments.


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    #5
    Shewhomustbe...
    Registered Users Posts: 484 ✭✭Shewhomustbe...


    Thanks for the replies. I thought it was a bit hopeful to think any banking institute would be helpful to us lowly customers.


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    #6
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    KBC offer re-mortgages up to 80% of the property's current value, including some refinancing of short-term debt. Your credit history and banking history would need to be spotless. But I would treat such an option with extreme caution for lots of reasons, including the following: -
    • KBC interest rates may be higher than what you're already paying.
    • Cost of solicitor €1,000 + cost of valuation €130.
    • If anyone is considering doing this, try to keep the two loan amounts over different terms. So you can have the refinanced personal loan over a short term and the refinanced mortgage amount over a longer term. Don't fall into the trap of refinancing a short-term loan over 20 years or more as you'll pay an awful lot of interest on it, however attractive the lower monthly repayments might appear.


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