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Interest Rate Cuts

  • 16-11-2011 4:16pm
    #1
    sallymomo
    Registered Users Posts: 256 ✭✭


    Hi
    Apologies if this is asked elsewhere..A question to the knowledgeable people here on boards - We are lucky enough to have a tracker mortgage and as there has been a recent cute in the ECB rate and a chance there are more to follow I am wondering if I should be sensible and pay the small saving that results from the drop, off the mortgage? If so, how exactly do I go about this? Can you specify to your lender that the extra goes off the capital? Or would I be better off saving it in the Credit Union?

    Thanks


Comments

  • #2
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    sallymomo wrote: »
    Hi
    Apologies if this is asked elsewhere..A question to the knowledgeable people here on boards - We are lucky enough to have a tracker mortgage and as there has been a recent cute in the ECB rate and a chance there are more to follow I am wondering if I should be sensible and pay the small saving that results from the drop, off the mortgage? If so, how exactly do I go about this? Can you specify to your lender that the extra goes off the capital? Or would I be better off saving it in the Credit Union?

    Thanks

    Its all depends on the interest rate really. If you can get a rate to save your money which is higher than your mortgage rate then its favourable to save it. bear in mind the rate of savings will have DIRT deducted from it so must be considered also.

    If you cant get a better rate on savings and can afford to pay extra off mortgage just ask your bank if they can take extra or you may need to do ad-hoc payments yourself to the mortgage. It will automatically go against the capital.


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