If you already have a mortgage you may be able to increase or top-up your mortgage to extend or improve your home, cover educational expenses or give a parental gift. Some mortgage lenders may allow you to use a mortgage top up to consolidate short-term debt. Whether you can top-up your mortgage will depend on your lender’s terms and conditions.
You may be able to borrow up to 90% of the current value of your property and there is typically a minimum top up amount, from €10,000 to €25,000.
When deciding on your top up application your lender will consider things like
- Your current income and ability to afford increased repayments
- Your credit history and recent borrowings
- The current market value of your property
- Your age and the amount of time you want to borrow for
With a mortgage top-up there may be other fees and charges, such as
- The fee to get an up-to-date property valuation
- Legal fees
- A breakage fee if you are on a fixed-rate mortgage
- Administration fees for changing the terms of your original mortgage
- An increase to mortgage protection insurance to cover the extra loan amount
- An increase in your home insurance premium if your home is extended or altered
- An increase in the amount of interest you will pay overall on the mortgage
The new mortgage term should suit the purpose of the debt. So if you are topping-up to cover educational costs you don’t want to be paying for it ten years after the course has ended.
If you are looking to top-up your mortgage as a way of consolidating other debts read our information on consolidating debts first.
In accordance with the provisions of the Consumer Credit Act 1995, the following are for your attention:
Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it. The payment rates on this housing loan may be adjusted by the lender from time to time.
Note: The above notice in respect of adjustments to repayment rates will not apply during any period when the loan is at a fixed rate.
In accordance with the provision of the Consumer Protection Code (CPC) 2012 the following are for your attention:
Warning: If you do not keep up your repayments you may lose your home.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.
The following warning applies in the case of variable rate loans:
Warning: The cost of your monthly repayments may increase.
The following warning applies in the case of fixed rate loans:
Warning: You may have to pay charges if you pay off a fixed rate loan early.
The following warning applies in the case of debt consolidation loans:
Warning: This new loan may take longer to pay off than your previous loan. This means that you may pay more than if you paid over a shorter term