Increasing mortgage repayment

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murphy05

Registered User
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I am thinking of adding an extra 100euro on top of my current monthly repayment. Mortgage was for 170,000 euros over 25 years. Which began a little under 12 months ago. What would be the impact of this increase and would it affect my interest relief? Any advice would be welcome.
 
Assuming 4.9% interest and 3.5% CPI inflation it will shorten your term by 3 years 9 months and save you €11,700 in real terms over the remaining term.

You could punch in the numbers yourself using Karl Jeacle's Mortgage Calculator and also see the effect of larger prepayments.

Any impact on mortgage interest relief is irrelevant as making a prepayment will save you more money. You'd only be missing out on 20% relief on the proportion of interest charges you'd otherwise be paying without the prepayment.

The interest relief question is only relevant if you're comparing making prepayments with instead putting them into a high interest regular saver account and then using the saved lump sum to repay the mortgage.
 
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