Mortgage topup from different bank

Shedite27

Anybody have any experience getting a Mortgage topup for renovations from a different bank.

Is it possible? Or would banks want you to switch your whole mortgage?

Current bank is very tough to deal with, but still have 3 years fixed with them.

phormium

You can't really as you only have one set of deeds and the bank holding the mortgage has them. Another bank won't take a second charge on the property so you will be limited to doing a home improvement or personal loan but certainly not at home mortgage rates if you go with a different lender to original lender.

namloc1980

Shedite27 wrote: »

Anybody have any experience getting a Mortgage topup for renovations from a different bank.

Is it possible? Or would banks want you to switch your whole mortgage?

Current bank is very tough to deal with, but still have 3 years fixed with them.

You can't have two mortgages on the same property at the same time.

phormium

Well you could technically but both would have to be with same bank

namloc1980

phormium wrote: »

Well you could technically but both would have to be with same bank

No you can't. You could have two (or more) mortgage loan accounts at the same time with the same bank but you'd have just one legal mortgage securing them.

Jim2007

You can always ask and see what they say.

But generally speaking, banks like to have the first bit off the cherry when things go pear shaped and being second in line could be an issue. But if there was substantial capital in the property, maybe.

phormium

namloc1980 wrote: »

No you can't. You could have two (or more) mortgage loan accounts at the same time with the same bank but you'd have just one legal mortgage securing them.

Correct, I was speaking more of the practice of the mortgage accounts which I'd say most people think of as the mortgage rather than the actual legal bit

namloc1980

Jim2007 wrote: »

You can always ask and see what they say.

But generally speaking, banks like to have the first bit off the cherry when things go pear shaped and being second in line could be an issue. But if there was substantial capital in the property, maybe.

Second charge lending isn't much, if at all, in vogue now. Some institutions got badly burned after the 2008 crash due to their weaker second charge and were left carrying all the loss.

All the mortgage credit directive stuff applies including central bank lending rules on ltv etc. I'd be surprised if any bank is doing it on consumer mortgages these days.

Shedite27

Thans folks. Yeah the initial bank is treating my topup as a second mortgage account, with its own account number and direct debit etc, so thought it might have been possible to shop around the second account, but yeah the deeds puts an end to that.

Thanks

JPA

Shedite27 wrote: »

Anybody have any experience getting a Mortgage topup for renovations from a different bank.

Is it possible? Or would banks want you to switch your whole mortgage?

Current bank is very tough to deal with, but still have 3 years fixed with them.

What bank are you with? And how are they tough to deal with? Is it a specific branch being difficult?

Shedite27

JPA wrote: »

What bank are you with? And how are they tough to deal with? Is it a specific branch being difficult?

BOI.

2 parts to our build.

1. Part one is basic and doesn't require engineers, foundations etc, I can get it done through lockdown, but need funds in the next month.
2. Part two needs more detail/planning/foundations etc, I can't do it during lockdown.

I want to start now, but can't unless I have the mortgage sorted, BOI won't sort the mortgage until the bits I can't do during lockdown are done. I was hoping there'd be another bank that might be more flexible in seeing it as two phases.

Anyway, seems second bank isn't an option, I'll go back to them in the morning and see if we can reach a compromise.

garrettod

Jim2007 wrote: »

You can always ask and see what they say...

Ask another lender to accept a second charge on a PDH, not a hope in hell.

I'm surprised that you'd even suggest that the original poster waste their time, Jim. I thought you said that you had a background in insolvency etc.? Your experience must be from 15+ years ago, if you think that a proposition like this, would still fly.

Trying to enforce security over a PDH to recover an original loan, typically takes about 8-10 years, and yet you think another lender would be happy to wait until after that was sorted out, and the first lender then sells the house to get paid - controlling the sale process along the way etc. Not a hope.

---

garrettod

Shedite27 wrote: »

... Current bank is very tough to deal with, but still have 3 years fixed with them.

What's the problem with the current bank?

All banks are looking to lend, so they should be delighted to hear you ask for additional money.

If you really don't want to borrow from them again, then ask what the cost of breaking the fixed rate is, as it may not be as bad as you think.

Get approved for the cheapest mortgage that you can qualify for - with a bit of luck, the cheaper loan rate and their contribution to legal fees etc will justify paying the cost of breaking the fixed rate with your current bank, when you leave them.

Shedite27

garrettod wrote: »

What's the problem with the current bank?

All banks are looking to lend, so they should be delighted to hear you ask for additional money.

If you really don't want to borrow from them again, then ask what the cost of breaking the fixed rate is, as it may not be as bad as you think.

Get approved for the cheapest mortgage that you can qualify for - with a bit of luck, the cheaper loan rate and their contribution to legal fees etc will justify paying the cost of breaking the fixed rate with your current bank, when you leave them.

Just posted it a 2 posts above yours.
Yes, gonna ask them about break fees today, thanks.

Trish56

If you're building an extension then just ask the bank to issue the top up in stage payments and then you can get Part 1 done.

Don't waste your time asking any other lender for a second mortgage as it's just not possible. Your existing lender holds the deeds and a mortgage is secured on the property. You do have the option to find out how much of a penalty you would pay to redeem and switch your mortgage to a new lender.

Shedite27 wrote: »

BOI.

2 parts to our build.

1. Part one is basic and doesn't require engineers, foundations etc, I can get it done through lockdown, but need funds in the next month.
2. Part two needs more detail/planning/foundations etc, I can't do it during lockdown.

I want to start now, but can't unless I have the mortgage sorted, BOI won't sort the mortgage until the bits I can't do during lockdown are done. I was hoping there'd be another bank that might be more flexible in seeing it as two phases.

Anyway, seems second bank isn't an option, I'll go back to them in the morning and see if we can reach a compromise.

wench

Shedite27 wrote: »

BOI.

2 parts to our build.

1. Part one is basic and doesn't require engineers, foundations etc, I can get it done through lockdown, but need funds in the next month.
2. Part two needs more detail/planning/foundations etc, I can't do it during lockdown.

I want to start now, but can't unless I have the mortgage sorted, BOI won't sort the mortgage until the bits I can't do during lockdown are done. I was hoping there'd be another bank that might be more flexible in seeing it as two phases.

Anyway, seems second bank isn't an option, I'll go back to them in the morning and see if we can reach a compromise.

Does the work you want to do now add value to the house if part 2 doesn't get planning or doesn't happen for any reason?
If not, the bank would have given you money for no increased security.

Shedite27

So just to finsih this thread, I asked my original bank bout the break fee. In the same mail they came back to me with the break fee, they said they would waive the two requirements that I figured were nonsence.

It's a great chip to have if you need the bank to speed up

Darc19

There is no such product as a "mortgage top up" in banking.

It might get used as a description or a marketing term but it will always be a second loan and treated as such.

To make things easier, banks will create the second loan to end the same time as the current mortgage and may even lump the payments together as one payment.

But no matter what what lending institution you are with, a "mortgage top up" is a separate agreement.

The only other alternative is a new mortgage for the combined amount of the existing mortgage and the required additional amount.

Deseras

You better get it soon as interest rates will jump in next 6 months

The European Central Bank is reacting to rising interest rates in the world, particularly in the United States, by stepping up to increase security purchases.
The eurozone and other countries in the world are out of sync with the United States in terms of achieving economic recovery, and this is pushing government policy makers to edge.
The world is in disequilibrium, and this is resulting in governments operating along different paths, leading to rising stock prices and the issuance of more and more debt.
Where this will end is not known because the uncertainty about the future continues to rise.The yield on the 10-year U.S. Treasury note reached a level of 1.64 percent on Friday afternoon, a level not reached since January 2020.

And this has caused concerns in the European community that the Federal Reserve will sooner, rather than later, “back off” from its efforts to provide liquidity to the banking system and the financial markets, which will only result in these longer-term interest rates rising to even higher levels.Christine Lagarde, president of the European Central Bank, just made mention that she expected that the eurozone economy would decline in the first quarter of 2021. This would be the second quarterly decline in a row, signaling that the Europe was still in a recession. The reason for the continued slowdown she announced was the slow pace of vaccinations and the extended lockdowns being experienced by the continent.some European countries - particularly in the south where debt is more than 150 percent of gross domestic product - are especially vulnerable to rising interest rates.The effort of the ECB seems to be just an effort to keep things from falling further apart. The question is can this goal be achieved?