Upping repayment on a tracker

Lisha

Husband and I are repaying on a 100k mortgage . We (thankfully) have a tracker. Repayments are 570 a month over 20yrs. I'm toying with upping repayment to 650/700pm. I don't want to affect the tracker rate in any way.

What are the important questions I should be asking the bank? Or is saving and paying off in chunks a better option?

skippy2

Why are you considering repaying a tracker early......... At the moment my tracker is 0.79%. This is free money more or less it is costing you nothing to borrow at these rates. Makes no sense to pay off a tracker early.
Pay off any other debts first

If you have spare money to invest either invest in ETF funds. Put it in your pension if you are a high earner. Watch out for Pension fees here. Plenty of other investment options you should consider

anewme

I'm in a similar predicament and had the same advice about the tracker ecb plus a half being cheap money. However it's still a mortgage and I want it gone. Mine was 600 a month (I'd say it's dropped further) so I rang them and told them to set the dd at 1000 till further notice. It's not effected the tracker rate in any way and I'll be mortgage free in about 7 years. That will be such a huge relief.

Lisha

skippy2 wrote: »

Why are you considering repaying a tracker early......... At the moment my tracker is 0.79%. This is free money more or less it is costing you nothing to borrow at these rates. Makes no sense to pay off a tracker early.
Pay off any other debts first

If you have spare money to invest either invest in ETF funds. Put it in your pension if you are a high earner. Watch out for Pension fees here. Plenty of other investment options you should consider

Yes I know logically you are right.
Husband and I are crap at saving.
We have no other debts.
We cAn afford to up the repayments which would mean mortgage would bE paid before the children are of collage age. I just can't get myself into the 'investing' mindset.

Lisha

anewme wrote: »

I'm in a similar predicament and had the same advice about the tracker ecb plus a half being cheap money. However it's still a mortgage and I want it gone. Mine was 600 a month (I'd say it's dropped further) so I rang them and told them to set the dd at 1000 till further notice. It's not effected the tracker rate in any way and I'll be mortgage free in about 7 years. That will be such a huge relief.

Thanks. Think I feel the same. Was it just a phone call you needed to do?

Sleeper12

Lisha wrote:

Yes I know logically you are right. Husband and I are crap at saving. We have no other debts. We cAn afford to up the repayments which would mean mortgage would bE paid before the children are of collage age. I just can't get myself into the 'investing' mindset.

Go for it.
Sounds like a sensible thing to do.

anewme

Lisha wrote: »

Thanks. Think I feel the same. Was it just a phone call you needed to do?

Yep rang them and said fix it at 1000 till further notice. Paying the extra a year now and don't notice the difference. i can call back and down the repayment as well at any time but so far so good!

I'm lucky that I'm saving a decent bit as well and sticking a few bob into the pension.....but I think rates will have to go back up at sime point and the more I've paid off the mortgage the more chance I'll get out when they are low

cathy427

Similar predicament to OP and cant get my head around it.

Would someone who understands mind throwing an eye over the figures and situation and give opinion/advice

Tracker at 0.75%

Paying €682 a month (after mortgage interest relief)

Could afford to go to €1000/€1100 a month. (300/350 a month into deposit savings is earning nothing)

About 14 years left to run on mortgage

No other debts. Have rainy day fund.

Not really in the investment mindset/ don't have any knowledge of investments. (make a small investment in 2006 - its still worth less than the original amount; I know its timing and the world crash etc)

If I up the payments into mortgage by 300/350 a month do I save anything in long run?

As per Anewme above if rates go up sometime does it make sense to have more paid off before that happens?

Lisha

Right
So this is my plan.....

Up mortgage from 570 to 700pm
Pension is good, will start paying 100pm into avc's. (Will look to increase this year on year)
No real rainy day fund. Will start saving 250pm.

I hate being crap/lazy at finances.
I keep telling children, always save 10% every month.

Must start practising what I preach.