Remortgaging

hawker

I am thinking of remortgaging and was wondering if anyone has experienced it and would they advise me to go ahead.

Presently I have a mortgage of 390e pm approx with 14 yrs left to pay. I also have loans (car, home improvements, credit cards etc) totalling 700 euro approx pm.

I am considering adding a conservatory to the house so I priced a 100k mortgage which works out at around 700pm over 15 yrs. Should I go for it or proceed with caution?

ck1

Ulster Bank are now advertising that they will pay the legal costs of remortgaging so this should save you quite a bit.

Einstein

Try these mortgage calculators.
Calc 1
Calc 2
These ones are with First Active, there's plenty more out there though.
Rea also gave me a great quote, but I decided to go with First Active in the end.

Just remember, when combining loans like that, you essentially turn short term loans into long term loans. But its still a great idea and leaves you with more cash each month, just means you pay a little more in the long run.

D...

Raytown Rocks

Hey Hawker

I remortaged recently along the same lines as your thinking.
I have a normal mortage on my house but had outstanding loans on
credit union,credit cards etc.
Decided to go for a remortage with Bank of Scotland.
Thay have given us a loan that we can pay back over 3 years.
Our repayments are €500 + per month on top of our current mortage
but our total intrest repayment on this new amount is just over €1500 over 3 years where as our repaymnents on credit cards and personal loans is almost that amount in a year.

Made much more sense to us to go for the remortage.

Hope this makes sense to you.

MorningStar

What ever you do understand the principle that finanacial advisors are saying when you remortgage to consoladate debit. You don't simple put your debit onto the 30 year mortgage and then just pay it. You pay off the additional debit in the same time frame you originally would . The idea is you gain on the reduced interest rate not the that you have a debit lasting longer than the items purcahsed.

Simple math for an example

€100 @ 18% for 5 years = €90 payout

€100 @ 5.5% for 30years= €165 payout

€100 @ 5.5 for 5 years = €27.5 payout

Some people don't mind as in 30 years the debit might not seem that bad you just need to be aware of it. Sorry if it sounds a bit condescending but sometimes it's better to assume complete lack of knowledge

hawker

Thanks for all the replies. I'll decipher them when I get a chance.

To be honest I'm caught in two minds. The boss really wants her conservatory and to me it makes sense as it'll give us a bit more room with two small kids. However in the back of my mind I'm saying we're lumbered with this debt for 15 yrs plus the possibilities of a car change in a couple of years will add another loan and we could be back to square one again.

I have made an appointment to meet a mortgage advisor next week and I'm know they'll push us to go for it.

I think for now it makes sense but I'm wondering in five years time I'll look back and say 'why did we bother doing that'? The joys of adult life!

Victor

Can you afford €700 a month (against €390)? If you already have credit card debt are you living beyond your means?

If you put your short term debt on your mortgage, make sure you are at least paying off the capital quicker than before.

MorningStar

hawker wrote:

To be honest I'm caught in two minds. The boss really wants her conservatory and to me it makes sense as it'll give us a bit more room with two small kids.

I actually grew up with a conservatory when I was a child when people didn't know what they were. I remember needing to explaining what it was to people. :rolleyes: It wasn't exactly a common sight. In truth they don't actually add value to your house yet cost nearly the same as an extension. An extension on the other hand really is more likely to add value. I would recommend you build an extension with big windows and a skylight and keep the room white. Easier to heat and convert later on to a full room if need be. Check with local estate agents what they think is worth more just to see what suits your local area. There are a few things that will date in the future and fake victorian conservatories, cobble lock and lamenate floor are on that list if you ask me. It's not a taste thing just common sights that can age baddly given time. I like 70s furniture and colours so what do I know about taste the house is all orange and brown

Thomond Pk

I totally agree and would add that the conservatory has largely been replaced by the sunroom, these guys have some good stuff on their site www.box.ie

hawker

Thanks for all the help. Maybe it's a sun room she wants to build and I'm just assuming it's a conservatory.

I don't have a problem with the 700e pm. At the moment I'm paying about 1100 in mortgage/loans (which I can afford too) and it seems to make sense to cut it down. It's just the fact of paying it over a 15 year period thats turning me off it.

I'm not doing it to add value to the house to be honest because we will not be moving anywhere for a long long time. It's just more room we're after.

I was just wondering if other people had experienced (directly or indirectly)the same and if they would recommend it? I would rather get the public opinion before I go to any mortgage advisor.

MorningStar

hawker wrote:

I'm not doing it to add value to the house to be honest because we will not be moving anywhere for a long long time. It's just more room we're after.

.

That's fair enough but you maybe able to get better value for your 15 years of payments depending on what you do with the money. Heat is also a cost that people often underestimate in such rooms and they can be uncomfortable in the summer too.

Victor

Can I suggest then that you pay it off at something like €1,000 per month over 10 years? (or whatever it works out at). you don't have to stick to 14-15 years.