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Re-mortgaging- Is it wise?
Folks,
I have two mortgages:,
(1) one for 20 years, fixed interest at 3.94%, still have to pay 110, 000 euro in remaining 12 years.
(2) second one for 7 years, fixed at 3.71%, still have to pay 80,000 euros in next five years.
God's grace I could pay out 2500 euro per month towards two mortgage currently, although, worried I won't be able to do so in case of losing my job.
(high possibility in the immediate future)!!!
Now that ECB is cut the interest rate to 0.5%:-
(1) is it the right time to re-mortgae with another bank?
(2) What are the interst rates offered nowadays?
(3) which bank is giving the lowest fixed interest rate as of today?
(4) Any experience with re-mortgaging? Worth the trouble and money spent ?(looks like another 10,000 euro is needed to move two mortgaes to another bank :(
(5) Does anybody know if I can club both mortgages to another bank and can keep one single mortgage?
How the hell did you manage to get 2 mortgages against the same property with different lenders? Or is there something like REALLY important that you have missed telling us?
> constructive feedback?
I'm glad you're not a fraudulent twat. I mean you did sort of leave that one open didn't you.
So you rent one out and you live in the other? Same bank holds the mortgages on both properties? Can you sell either quickly to pay off the other? Can you re-mortgage one for say 190k, pay off the other and then if you loose your job, you only have one mortgage to put on hold until you find another?
Have you spoken to your current lender about options/consolidation??? And???
(6) I think this depends very much on both the bacnk and the mortgage deal you have.
KBC, for instance, will allow you to pay interest only, or nothing at all (the interest will be added to the loan) for 6 to 12 months if you have a history of good credit with them (have been paying off the mortgage for a while), and have positive equity in the property. I couldn't speculate as to whether or not you would qualify, and I would expect some other banks may also have the same flexibility.
(7) Both mortgages with the same bank would make consolidation easier - they are more likely to cut a deal in which you don't have the interest penalty to pay when you close one down.
Talk to your existing mortgage lenders - there's a fair chance that they would be willing to extend the larger mortgage if the value of the property covers it at no more than a new arrangement fee.
