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Paying Off Tracker Mortgage

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  • 31-03-2014 12:44pm
    #1
    rob_j_l
    Registered Users Posts: 25 ✭


    Hi All - I'm just wondering - if are in receipt of a large sum of money (ie. inheritance / shares etc.) and after tax is paid - is it possible to pay off a tracker mortgage in one payment and will penalties etc apply?

    Thanks in advance
    :confused:
    Tagged:


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    #2
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    Generally, no. Variable rate mortgages can usually be paid off anytime.

    However in this case it might be advisable to negotiate, especially if you have a good rate.


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    #3
    peteb2
    Registered Users Posts: 1,813 ✭✭✭peteb2


    Just to be clearer on what 3Data said. They probably mean there would be no charges for early redemption and yes you can pay it off at any time.

    Only fixed rates generally incur break penalties. If they know you can pay over the term they are unlikely to negotiate a lower figure with you. Other forums such as askaboutmoney have queried this before. And it isn't happening.


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    #4
    rob_j_l
    Registered Users Posts: 25 ✭rob_j_l


    Thanks to you both, just to be clear would the prospective interest be payable also?


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    #5
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    rob_j_l wrote: »
    Thanks to you both, just to be clear would the prospective interest be payable also?

    If your current tracker involves a rate of interest which is below the current variable rate then I'm pretty certain that the bank will happily allow you to pay it off and no, you should not be paying any 'prospective' interest, just whatever interest has accrued since it was last added to the account.

    Aren't banks desperate to get out out of trackers so why wouldn't they allow the OP to pay it off without penalty?


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    #6
    Nialloo24
    Registered Users Posts: 48 ✭Nialloo24


    No penalties at all... Only fixed rate loans get penalties. They will give you the closing figure or redemption quote. Had to be posted out in our case as loan was with IBRC thankfully done and dusted now!


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    #7
    NewCorkLad
    Registered Users Posts: 957 ✭✭✭NewCorkLad


    Yes you could pay off a tracker mortgage early and the prospective interest should not apply.

    However depending on your tracker rate I would not be in a hurry to pay off the mortgage, you can potentially get a better return on your money in a deposit account or investing it than you would save by pay off the mortgage early.


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