Has anyone paid off their mortgage quickly?

brendan86

Cyrus wrote: »

no 2% cashback with KBC though

BOI cash back is a joke its to fool people there getting a good deal. Look at there variable rates. In fairness it works for them because majority of people don't understand mortgages and just see 2% cashback that's great and 3% fixed for 2 years. After that 2 years you will be on a lot higher rate than most competitors.

As for EBS 2% cash back, that's a good offer far better terms than BOI

listermint

pwurple wrote: »

Lol, Well, we're Irish, so we don't like to gloat.

Naw, we have it pretty good. I think concentrating on a goal and seeing results is very satisfying.

Sure, we didn't take a foreign holiday for a few years when childcare was crippling us, because we reasoned that babies don't remember holidays anyway. But now, yup, we take a holiday. It might be camping, but it's still fun.

We eat well, because we are good cooks, and go out to eat once a month, or more if we can. And we have a cleaner. That's defo luxury. We have a nice house, in a lovely area with a decent garden, and a reasonably new car. A healthy family, and without crucifying debt. I'm fairly proud of it tbh. I wouldn't call myself miserable! It's been work and dedication, but I'm pretty chuffed with the results.

On my death bed, I hope my kids will appreciate the decent life we tried our best to provide for them, which, yes, includes savings and hopefully some knowledge on how to do the same as we did.

Have a cleaner but cant take a holiday.

No thanks not for me , Id clean up after myself and head to the sun once a year

SozBbz

Cyrus wrote: »

tell you what folks im all for keeping your mortgage term reasonable and being sensible about debt, but some of you dont half sound miserable

as some other posters have said you have to balance living your life with paying the mortgage down, we are all going to die, it could be tomorrow, and much like people saying you will never wish that you worked more when you are on your death bed, i doubt you will wish that you saved more.

I totally agree with this - I only over pay because it suits my particular circumstances. I go on I'd say one major and 3/4 minor holidays per year, and I don't watch my day to day spending. I'm the one out there eating all that smashed Avocado

The reason I've such leeway is two fold. I work in a job where my salary is mixed between fixed (my basic) and variable (bonus). I only borrowed based on my basic income, when in reality I earn more than that. Also I've had a pay rise since then so what I've borrowed is modest in comparison.
Secondly, my OH lives with me so he contributes, meaning that while I borrowed as a single person, in reality theres a couple paying off this mortgage.

Based on the above, sure I could flitter it away, risk it on the markets, or save it for almost negligible return.... I think chipping away at the mortgage seems a good idea, low effort way of doing stuff with the money.

Bellview

SozBbz wrote:

I got offered 3% for 2 year fixed on the phone with them earlier today.

SozBbz wrote:

What are KBC offering?

2.99 for kbc

Innocent123

Not sure if its been mentioned but:

I've indexed my repayments by 1%. Its been a while but from recollection it was a written instruction to the bank instructing an increase in repayments by 1% a year to be taken from the capital.

In a nutshell this means that for every €100 I pay an extra €1. The impact on the term was significant and it can be stopped at any point. On requesting this I received a full amortisation table from the bank detailing the potential years cut from the term of the mortgage.

At some stage I intend to increase the index percentage and knock a few more years off

Cyrus

brendan86 wrote: »

BOI cash back is a joke its to fool people there getting a good deal. Look at there variable rates. In fairness it works for them because majority of people don't understand mortgages and just see 2% cashback that's great and 3% fixed for 2 years. After that 2 years you will be on a lot higher rate than most competitors.

As for EBS 2% cash back, that's a good offer far better terms than BOI

ive already had the EBS 2% :P im switching after 6 months to get the BOI 2% and ill switch at the end of the 3 years to whatever the best variable or fixed rate is at the time

vmb

My mortgage started in Feb 16. Since then, instead of 950 Euro/month, I am paying 3500. p/m

I have everything calculated, I will save 110.000 euros in total and finish in only 5.5 years instead of 29 years. The total amount of interests at current rate will be only about 18k euro. Best decision ever .

This has a bad side, of course. my savings are very poor. If something happens I can return to the original payment amount.

Bellview

brendan86 wrote:

I am sorry but how do you make out BOI rates are better than KBC? KBC have some of the most competitive rates for new customers including fixed and variable.

My comment is on 2 year and 3 year fixed as .01 per cent difference.im only giving my experience having spoken with both banks in last 3 weeks

You are correct on variable.

Mooooo

TBH interest rates being at an all time low I'd try and fix at a low rate for as long as possible only going fixed for 2 years may have you coming off it as interest rates rise so the variable or fixed rate offered then may well be higher. Who knows interest rates may well stay down for a bit yet but likely to rise at some stage

brendan86

Cyrus wrote: »

ive already had the EBS 2% :P im switching after 6 months to get the BOI 2% and ill switch at the end of the 3 years to whatever the best variable or fixed rate is at the time

So KBC variable rate after fixed period = 3.5% if you set up current account

BOI variable rate after fixed period = 4.5%

Quite easy to figure out which is best BOI won't be long clawing back your 2%.

Mooooo

Mooooo wrote: »

TBH interest rates being at an all time low I'd try and fix at a low rate for as long as possible only going fixed for 2 years may have you coming off it as interest rates rise so the variable or fixed rate offered then may well be higher. Who knows interest rates may well stay down for a bit yet but likely to rise at some stage

I'd be surprised if the banks have gotten their fixed rates and terms wrong by much so to speak

pwurple

listermint wrote: »

Have a cleaner but cant take a holiday.

No thanks not for me , Id clean up after myself and head to the sun once a year

Eh, reading fail mate. We do both now. :cool:

Cleaning up after myself is no problem, but kids are messy feckers. Sounds like you don't have any! As much fun as spending the entirety of every weekend ironing, hoovering and scrapping other people's skid marks off toilets is for you.... I'll choose to outsource that joy.

And seriously, dragging infants screaming onto a plane, then hunting for shade because they burn to a crisp in ten seconds of sunlight, then sitting silently in a hotel room while they go to sleep at 7pm is the polar opposite of fun. It is an ordeal. So we engaged our brain, and skipped bringing babies on "holiday". Paid down an extra chunk of mortgage instead, and are in better shape now when we need it.

When they can swim, play and run about having adventures, and don't need nappies or midday naps, it's 100% fun. We're happy, they're happy, it's all good.

brendan86

Sorry Cyrus wasn't meant to quote you with my figures above. Yes what your doing is smart granted you get another bank to take you on after switching twice in 5 years they might look at you differently thinking its not worth their business.

You need to ensure the last bank you use are the best for the term and not be stuck with the worst.

NewCorkLad

brendan86 wrote: »

So KBC variable rate after fixed period = 3.5% if you set up current account

BOI variable rate after fixed period = 4.5%

Quite easy to figure out which is best BOI won't be long clawing back your 2%.

Firstly they are variable rates which can be changed at any time.

Secondly its easy to fix again for another few years with BOI to get low rates.

So no its not easy to figure out which is best.

Cyrus

brendan86 wrote: »

Sorry Cyrus wasn't meant to quote you with my figures above. Yes what your doing is smart granted you get another bank to take you on after switching twice in 5 years they might look at you differently thinking its not worth their business.

You need to ensure the last bank you use are the best for the term and not be stuck with the worst.

im happy enough to take that chance, my LTV now is near 55% and at that stage should be well below 50% unless there is another massive property crash. I dont think there will be inducements when i come off the fixed so if there arent i dont see why whoever is offering the best variable rate wont want my business, but i guess ill find out :P

Cyrus

pwurple wrote: »

E
And seriously, dragging infants screaming onto a plane, then hunting for shade because they burn to a crisp in ten seconds of sunlight, then sitting silently in a hotel room while they go to sleep at 7pm is the polar opposite of fun. It is an ordeal. So we engaged our brain, and skipped bringing babies on "holiday". Paid down an extra chunk of mortgage instead, and are in better shape now when we need it.

When they can swim, play and run about having adventures, and don't need nappies or midday naps, it's 100% fun. We're happy, they're happy, it's all good.

i agree with all that, no big foreign holidays until the youngest is 3 or so (for the kids i mean not me :pac:)

Bigus

vmb wrote: »

My mortgage started in Feb 16. Since then, instead of 950 Euro/month, I am paying 3500. p/m

I have everything calculated, I will save 110.000 euros in total and finish in only 5.5 years instead of 29 years. The total amount of interests at current rate will be only about 18k euro. Best decision ever .

This has a bad side, of course. my savings are very poor. If something happens I can return to the original payment amount.

You'll also be able to borrow a million from a bank in 3 years time when they see your record , be careful "then".

brendan86

NewCorkLad wrote: »

Firstly they are variable rates which can be changed at any time.

Secondly its easy to fix again for another few years with BOI to get low rates.

So no its not easy to figure out which is best.

Im going with the facts here and now. No one can tell who will be best in 2 years.

Who's to say in 2 years fixed rates won't be away above variable rates and you may want to stay on variable.

Wheety

I'm planning on it anyway. Fixed for 5 years this year so can't really pay extra off without penalties but also opened a savings account which will be used to build up a lump sum and will pay that off the principle before deciding whether to fix or switch or something else. Think I'll keep the term and build up another lump sum. Each time the lump sum will be bigger (I hope) as payments should be less after every payment.

Fixed at 3.05% which I though was quite good. Variable could go up soon so hope it was a good move. Savings are paying 3%.

vmb

vmb wrote: »

My mortgage started in Feb 16. Since then, instead of 950 Euro/month, I am paying 3500. p/m

I have everything calculated, I will save 110.000 euros in total and finish in only 5.5 years instead of 29 years. The total amount of interests at current rate will be only about 18k euro. Best decision ever .

This has a bad side, of course. my savings are very poor. If something happens I can return to the original payment amount.

What line if work are you in that you can afford to pay that much off a month?!! Can I work there too!!!

MysticMonk

I was overpaying my tracker for several years til I was advised that it makes more sense to take out an AVC on my pension and pay off the mortage in a lump sum. The idea behind it is that the AVC will be tax free so represents and additional 40% over paying from your net income

vmb

Deleted User wrote: »

What line if work are you in that you can afford to pay that much off a month?!! Can I work there too!!!

Software engineer, both me and my wife.

Is not about what we earn, is more about what we spend. With our incomes, we could spend like like there is no tomorrow, but I (we) prefer to be debt free asap

rsynnott

Bigus wrote: »

You'll also be able to borrow a million from a bank in 3 years time when they see your record , be careful "then".

I'm doing something similar to this, though a bit less extreme. I'd actually suspect that the banks don't like it very much; if you pay off a loan that was meant to be 30 years in 5 years or whatever, the bank have had very little interest paid for their trouble. They'd probably prefer someone who just did the minimum payments, and gave them lots of interest!

vmb

vmb wrote: »

Software engineer, both me and my wife.

Is not about what we earn, is more about what we spend. With our incomes, we could spend like like there is no tomorrow, but I (we) prefer to be debt free asap

Thanks for replies. Ok so me and my husband would be on about 36k gross each a year. Are we way below you both in income or no? I don't know if we are being too hard on ourselves or too soft!! We would love to be debt free asap as we have seen close family run into poor health early and want debt to be one issue less to have concerns about.

Nika Bolokov

[Deleted User] wrote: »

Thanks for replies. Ok so me and my husband would be on about 36k gross each a year. Are we way below you both in income or no? I don't know if we are being too hard on ourselves or too soft!! We would love to be debt free asap as we have seen close family run into poor health early and want debt to be one issue less to have concerns about.

Your prob on about half.

paddyman

MysticMonk wrote: »

I was overpaying my tracker for several years til I was advised that it makes more sense to take out an AVC on my pension and pay off the mortage in a lump sum. The idea behind it is that the AVC will be tax free so represents and additional 40% over paying from your net income

Any math examples behind this by any chance?. Would like to see how putting money in pension with aim of clearing mortgage as a lump sum compares to over paying the mortgage each month.

Cyrus

paddyman wrote: »

Any math examples behind this by any chance?. Would like to see how putting money in pension with aim of clearing mortgage as a lump sum compares to over paying the mortgage each month.

Surely it depends on how the pension goes ?

Also you are only deferring tax with pension contributions

AndrewJRenko

mydarkstar wrote: »

My credit union started doing switcher mortgages last year at 2.9%. It is secured on the property, it isn't simply a CU loan. It's not common but it's not illegal! I don't qualify for it yet but it's a decent deal if you meet their criteria regarding term, LTV and mortgage balance.

lolli wrote: »

Umm yes they do?

Apologies - my mistake. I didn't realise that CUs had moved into this area.

And it looks like they'll be doing more and more of it.

http://www.thejournal.ie/credit-union-mortgages-3200288-Jan2017/

Sono

vmb wrote: »

Software engineer, both me and my wife.

Is not about what we earn, is more about what we spend. With our incomes, we could spend like like there is no tomorrow, but I (we) prefer to be debt free asap

I think you'll find it has everything to do with what you earn. Fair play though that's a hell of a lot of money to be overpaying.

Bobeagleburger

tedpan wrote: »

Definitely switch down to a 20 year. The interest on 35 is just nuts.

Bad advice

Kaiya Victorious Unicorn wrote: »

Definitely don't switch to a 20 year. Keep the 35 year and over pay on it at the rate of a 20 year mortgage but if something unforeseen happens you can always fall back to the lower repayment of the 35 year mortgage.

Always take a mortgage for the longest term they will give but overpay on it at what every amount you can comfortabley do.

Very good advice