Fix or pay off mortgage?

C

CoconutChia

New Member
Messages
4
Need some help on what is best with mortgages.

Rental1 worth €220k with mortgage of €56k - tracker (buy to let) - 1.35% +ECB - currently 5.1% - rental income €1000
Rental2 worth €350k with mortgage of €56k - tracker(originally ppr before marriage) - 0.6% +ECB -currently 4.35% - rental income €2000

PPR_Family house - worth €350k with mortgage of €120k - variable 3.10%

Combined salaries 150k
Cash of €100k
Pension and AVC maxed
No loans apart from mortgages



What specific question do you have or what issues are of concern to you?

Was thinking of fixing both AIB trackers for the 5 year term and overpaying balance on PPR by 40k but leaving it at variable as it seems to be better than current fixed rates -would this be a good idea?
 
Thanks RedOnion for your reply.
I think i saw some banks with fixed rates around 4.x% for a 5 year fixed and was thinking it would be good for trackers..for PPR i was going to wait until the variable matched fixed and then switch to fixed....
 
CoconutChia said:
I think i saw some banks with fixed rates around 4.x% for a 5 year fixed and was thinking it would be good for trackers.
Click to expand...
Yes, for PPR mortgages. BTL rates are completely different.

CoconutChia said:
for PPR i was going to wait until the variable matched fixed and then switch to fixed
Click to expand...
By the time standard variable rates catch up with where the fixed rate is currently, who knows what the fixed rate will be. AIBs variable rate is currently good value, considering its less than they could get just placing funds on deposit with ECB. I've no idea what their pricing strategy is. You're taking a bit of a gamble, but on a relatively low balance.
 
Thanks RedOnion ...I did not realise different fixed rate with BTL ..looks like i will be staying with tracker...and probably stay on variable and reduce the balance
 
Holding cash of €100k with so much debt doesn't seem to make sense. If you were going to use it, in part or full, to reduce your debts then I presume that it would make most sense to prioritise the PPR given that you can presumably set mortgage interest on the rentals against rental income?
 
If you pay 100k off ppr,
you won't be long paying off the balance.
Insofar fixing the buy to let you probably missed the boat on the rates, same as myself.
 
You must log in or register to reply here.
Back
Top