toni_mrphy
Registered User
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Personally, if it were me, I'd overpay the mortgage by 1500/month, reducing the term by about 17.5 years
but I think I need to emphasise point 4 better. A good reply from you would add to that emphasis.Reasons you might pay a lump-sum off your tracker
1) You are concerned that the deposit in the bank might not be safe.
2) Ireland might pull out of the euro. There is a risk that if Ireland pulls out of the euro, your deposit might be converted to punts while your mortgage stays in euro.
3) Having a lump sum might reduce your means tested social welfare payments
4) If you have money in the bank, you will squander it.
While the correct financial decision is not to overpay your mortgage, it is better to overpay it than to squander it
If you are good with money, it's better to have a €300k tracker mortgage and €100k in a deposit account, than to have a €200k mortgage.
However, if you the presence of €100k tempts you to squander the money, then you should pay down the mortgage.
Personally, if it were me, I'd overpay the mortgage by 1500/month, reducing the term by about 17.5 years (clear it in 7 or so). Then after 3 years you'd be in positive equity, be able to sell cleanly, and still have all of your shares and other savings as a new deposit. If you continued the overpayments for the 7 years, you'd have the money to buy another house outright, and you'd save a bucket in interest keeping that tracker - the flip side being staying put in your current house which isn't what you want
That said we eat out a lot , take about 4 holidays a year have nice cars etc ete.
The only issue with moving the tracker mortgage is my credit rainy de to some bad decisions a year or two ago it is not good so doubt they would allow this
The only issue with moving the tracker mortgage is my credit rainy de to some bad decisions a year or two ago it is not good so doubt they would allow this
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