# Lump sum payment on buy-to-let tracker mortgage



## cork2012 (17 Dec 2012)

Hi, 

*I have a tracker interest only mortgage €230,000.* I am afraid that I may be taken off interest only some time in the future. I have* a lump sum which I wish reduce the loan with*. What is the *best method of doing this*, is it better to reduce the loan term or just the capital amount?

Also are there any offers coming down the line for *PTSB customers* for making an overpayment on the tracker mortgage?

Is it true that if you repay the loan amount before the year end (ie 31/12/12) that the loan repayments will be reduced in the new year, as opposed to making a repayment in Jan 2013 and not benefiting from this repayment until Jan 2014.


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## Brendan Burgess (17 Dec 2012)

Check out this Key Post Should I use a lump sum to reduce my mortgage? Note that this applies to home loans only. If you have a Residential Investment Property, it's unlikely that you should pay a lump sum off it.

Does your contract specify that you are on interest only? If not, why are you on interest only?  If you are on it  because you can't meet your repayments, then you should resume your normal repayments as it seems that you can afford to. 

If you do pay a lump-sum specify that you want it to be treated as repayments in advance, so that if you get into difficulty in the near future, you will be able to use the advance to stop making payments when you need the money.

It's possible but unlikely that ptsb will do a deal for trackers. 

Paying a few days before or after the year-end won't make the difference you suggest. Mortgages issued 20 years ago used to calculate the interest on an annual rest basis and it did matter then. It doesn't matter any more.


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## cork2012 (18 Dec 2012)

yes it is an investment mortage on interest only .Iwould just like to get the mortage lowered and want to find the best way to pay it off with an overpayment so as to reduce . Any ideas.
Thanks for the time taken to reply Brendan.


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## manninp2 (18 Dec 2012)

We'd need to know the term, interest rate, type of interest rate to give an answer.

Basically we'd be figuring out if the income from investing the lump sum would be greater or less than the cost of the debt.


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## DK123 (22 Jan 2014)

i also have an interest only tracker morgage on an house which i let out.Should i pay it off with a lump sum,considering that then i will have no morgage interest to set against the rent on my tax returns?.Thanks.


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