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 your 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.