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Increase Mortgage payments or pay lump sum

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  • 22-04-2013 10:00am
    #1
    [Deleted User]
    Posts: 0 ✭


    Just a question. Would I be better increasing the monthly amount I can pay back on my mortgage over that of what is due or would I be better paying a lump sum off the mortgage. I can afford to pay a little more than the current mortgage but could save it up to pay it at once if that would work out better.


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    #2
    bee06
    Registered Users Posts: 4,514 ✭✭✭bee06


    What's your current mortgage interest rate and is it fixed, variable or a tracker?


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    #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    bee06 wrote: »
    What's your current mortgage interest rate and is it fixed, variable or a tracker?

    Tracker mortgage .75% above the ECB


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    #4
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    [Deleted User] wrote: »
    Tracker mortgage .75% above the ECB

    Put it in kbc deposit account.
    Smart saver is 3.5 % interest.
    Instant access is 3%.
    Even after dirt, you come out better saving.


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    #5
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Scortho wrote: »
    Put it in kbc deposit account.
    Smart saver is 3.5 % interest.
    Instant access is 3%.
    Even after dirt, you come out better saving.

    Cheers for that Ill look into that .


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    #6
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    PPR or BTL?


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    #7
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    gaius c wrote: »
    PPR or BTL?

    At the interest rate he's on I'd guess ppr. Weren't btl's always on a higher rate?


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    #8
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    gaius c wrote: »
    PPR or BTL?

    PPR yep.


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    #9
    murphaph
    Registered Users Posts: 19,022 ✭✭✭✭murphaph


    Scortho wrote: »
    At the interest rate he's on I'd guess ppr. Weren't btl's always on a higher rate?
    No, some lenders went so mad that BTL rates were the same IIRC.

    But in any case, he could be a "reluctant landlord" on an old PPR rate (some banks allow renting a former PPR or turn a blind eye)


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    #10
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    Just checking.

    Prob better to save the cash in a high interest account for now and decide what to do with it later.
    You can always pay down the mortgage lump sum down the line and with a bigger lump sum, you would be in a better position to do a deal with the bank on it. They would love to get you off that tracker so you are in a strong position.


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    #11
    murphaph
    Registered Users Posts: 19,022 ✭✭✭✭murphaph


    gaius c wrote: »
    They would love to get you off that tracker so you are in a strong position.
    I hear a lot about people getting "deals" to come off trackers but I suspect most people lose out unless they intend selling up in the near future. Banks aren't (that) stupid.


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