cork_south
Registered User
- Messages
- 17
You have only 12 years to go on your trackerIt is more attractive if...
You haven't long to go on your mortgage.
You expect to be paying off your mortgage anyway, because you expect to move.
You are in negative equity and you want to eliminate it as quickly as possible
You are worried about the safety of your deposit
This is just irrelevant. You will not be borrowing money again anyway except when you trade up. So you will have to cash in your tracker anyway when you trade up.you will never in your lifetime borrow money so cheaply again.
You have given no indication at all that your income is in jeopardy. You have saved a lot of money and paid a lot of money off your mortgage, so you are obviously good savers.Considering there is a recession going on, I'd suggest sand-bagging your savings just in case you ever need them for anything else.
If the ECB rate rises, deposit rates will probably rise in line with mortgage rates.If mortgage interest rates rise significantly and you still don't have a home for that money, thats the time to pay down the mortgage.
I don't understand this and I think it's irrelevant. You have to leave the repayment level fixed to qualify for the 10% credit, so you will be paying more capital afterwards. I have addressed this issue in this post.As you only have 135k left on your mortgage and 12.5 years, then you've already paid the bank the substantial majority of the mortgage interest, you're paying mainly the capital now - which makes the case that it may be too late to really get a decent advantage from a 20k one-off payment.
I didn't see them but if that is what they said, they were nonsense. I set out my calculations in the posts above and it is worth around 4% for a borrower on an ECB + 1% tracker with 20 years to go. Depending on the assumptions, it is worth around 25% to the bank. In your case, I would say that this deal would break even for PTSB and is a huge winner for you.and finally, I agree that 22k in return for 20k from TSB is TERRIBLE. I've seen calculations in the Indo recently suggesting a bank would need to pay 45-50% of your contribution for it to be attractive - thats 28-30k in your case.
It actually cuts around 3 years off your mortgage, but that is irrelevant.and finally finally, 22k off 135k outstanding is only about 15% which would cut maybe 1.5 years off the remaining term.
It makes more sense to pay off 60k now and get 66k credit, than pay off 60k and get 60k off your mortgage in a few years.if you don't need to, I'd hold off. if interest rates rise by 2% or more, then perhaps even pay off 40 or 60k and make a real hole in your mortgage
OP, losing your tracker in return for just two thousand euro (!) from PTSB and still have 113k outstanding at a much higher rate is not a great return in the short term, never mind long term.
OP, losing your tracker in return for just two thousand euro (!) from PTSB and still have 113k outstanding at a much higher rate is not a great return in the short term, never mind long term.
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