Mortgage with loan consolidation options?

Casati

Do any mortgage providers offer mortgages that allow you to consolidate any personal loans you might have along with your mortgage into a new mortgage?

This is v popular outside Ireland but searching for this on-line and aim drawing a blank

I know that this would result in paying the loan off over the length of the mortgage so potentially higher overall interest be it at it a low interest rate, but it could be a good option for reducing payments short term but not sure it exists in ireland

Trish56

Are the loans you wish to consolidate related to home improvements? If so and you can prove same you can consolidate. You can also draw down 15k additional funds without explanation with one lender that I am aware of.

Casati

Trish56 wrote: »

Are the loans you wish to consolidate related to home improvements? If so and you can prove same you can consolidate. You can also draw down 15k additional funds without explanation with one lender that I am aware of.

Thanks but no home improvements to qualify, and loans much higher than 15k. Is this not a product offered by banks generally?

beauf

Its generally discouraged. There are lot of risks attached to it.

If you look at some of the money advice channels they would suggest clearing all personal loans, selling off new cars etc.
Rather than taking new debt to service an old one.

https://www.irishexaminer.com/business/how-to-pay-off-all-your-loans-including-your-mortgage-quickly-and-easily-374056.html

Debt consolidation is a once-in-a-lifetime course of action. It only works to your advantage if you carry on making the same monthly payments, otherwise all you are doing is spreading the cost of your short-term debt over the longer term.

Currently it is virtually impossible to obtain such a consolidation loan in Ireland. I would strongly advise using professional help.

The sniper approach: If you don’t own your own home — or if you don’t have sufficient capital tied up in your property to consolidate your debts in with your mortgage —you’ll need to take the sniper approach. This involves picking off your debts starting with the most expensive.

Casati

beauf wrote: »

Its generally discouraged. There are lot of risks attached to it.

If the LTV is low, and qualifying income is high surely the risk is low?

beauf

Its more the habit it encourages.

If you stick to the plan, fine. Most people in this situation don't though.

Trish56

No equity release to consolidate short term borrowings are available unless as mentioned loans were for home improvements.

Casati wrote: »

Thanks but no home improvements to qualify, and loans much higher than 15k. Is this not a product offered by banks generally?

Casati

Trish56 wrote: »

No equity release to consolidate short term borrowings are available unless as mentioned loans were for home improvements.

Is it offered on investment mortgages? Eg house value 1m, mortgage 200k, would a bank consider remortgaging of the 200k to say 400k in order to buy another property?

beauf

I don't know where you are going with this. Unless its to use the loan for something else after you've got it, some of it, if not all.