I have a mortgage of EUR 680k (variable 4.15% AIB) with repayments that would be extremely difficult to afford on salary alone. However, I have significant savings, which have just been added to by the proceeds of the sale of my old house.
I now want to pay about 50% off my mortgage in a lump sum to make it more manageable. I know that I can either (a) pay to reduce the term or (b) pay to reduce the amount of each repayment. My question is, can I do a mix? Can I pay off a lump sum to reduce the repayments to a set monthly figure, and then set the term at whatever that set repayment would get me to?
Some additional questions:
When paying off a lump sum, do I need to specify that I want to pay off the principal?
Would it be worth remortgaging after I get the mortgage below 50% LTV?
Thanks
I now want to pay about 50% off my mortgage in a lump sum to make it more manageable. I know that I can either (a) pay to reduce the term or (b) pay to reduce the amount of each repayment. My question is, can I do a mix? Can I pay off a lump sum to reduce the repayments to a set monthly figure, and then set the term at whatever that set repayment would get me to?
Some additional questions:
When paying off a lump sum, do I need to specify that I want to pay off the principal?
Would it be worth remortgaging after I get the mortgage below 50% LTV?
Thanks