Combine two mortgages, one house

MyStubbleItches

Hi folks, just looking for some advice here.

We self built our home and funded it through a 200k mortgage which we had to top up by 30k towards the end of the build. We’re with BOI. Instead of topping up the 200k, they essentially gave us a separate 30k mortgage so we have two separate payments. We’re on a fixed rate on both but the renewal dates are months apart. I’ve been looking at switching as we could save c. €100/ month or shorten the term but would this be difficult to do given the two separate mortgages?

Would it make sense to go variable on the smaller loan until it comes time to refix the larger one? Or is there an easier way to align the two?

Trish56

If you're thinking of switching you should ask for redemption figures now to see what the penalty would be to come out of the fixed rates. The penalty should reduce the nearer you come to expiry of the fixed term.

Once the fixed term expires on the original mortgage you should choose a loan to value variable rate and then when the top up mortgage expires you are free to switch without penalty.

Coming up to two months of the fixed rate expiry on the top up, you can start the mortgage switch process with another lender so that you can complete once the fixed term is up. KBC offer good rates from as low as 2.25% and will give you cash back of 3k. You will have legal fees of approx. 1.5k and a valuation fee of €150 to switch the mortgage.

Hope this helps

MyStubbleItches

Brilliant, that helps a lot. A bit of forward planning needed so!