Lump sum use

dave2015

Registered User
Messages
58
Hi
Have been sitting on 50k for 6 months now.

Sorry for not posting all details but main points

Both in secure employment, wife a civil servant. Have 6 months liquid assets apart from this.
Maxing my AVC to pension.

I think I’ve boiled down to 3 options
1. Lump sum off mortgage. Going to cost 650 break fee on 2.6% fixed with 2 years left. Seems most sensible option. No other debts that should get priority. Seems expensive to fully break in order to drop another .3% on total so not really considering that.

2. Service buy back. My wife had taken couple of career breaks and on 4 day week at moment so she got letter recently about buying back years. I really dont know a lot about it and didn’t read up tbh. Figures seemed high. Anyone know enough to say I should do some more research or is it not worth it.

3.invest- I regret not going in more when market dropped. I put about 10k in and have made some money. Heart wants to gamble but head says I have enough exposure through pension and to leave well alone.

Thanks
 
I’d rule out number 3 straightaway if that’s a help. It’s hard to justify investing outside of one’s pension whilst carrying non-tracker debt.

If it was me, I’d dig down into Option 2 with the help of a fee-based advisor who specialises in that space (i.e. not someone who’s incentivised to make you go the AVC route).

I don’t think I’d swallow a €650 penalty with only two years to go, but you might let us know the outstanding amount.
 
220k left on mortgage(33%ltv). Figured with fee being basically 6months interest I’m getting a saving for other 18. I’ll be able to pay another 10% in January for free but I’ll have that available at that time I’d expect.
 
Switch mortgage provider or threaten to
See if that changes their tune on the breakout fee
With 33% ltv it should be easy to switch
 
Hadn’t really considered switching, break fee would be close to 3k so didn’t think was much of a threat plus not too many cheaper options on market. I won’t want to fix again really as all going to plan I’d hope to be continually over paying and clear in 3-5 years. Anyone had any joy with tactic. With UB
 
Going to cost 650 break fee on 2.6% fixed with 2 years left.
Hi, did you ask UB for break fee, or did you just use 6 months interest?

Even with break fee costs, you'd save net 1,950 interest over the 2 years.

But I agree with Gordon re exploring the pension funding for your wife.
 
It’s an okay rate so why not just lob €22k off it in January, another 10% the following January, make AVCs or Notional Service Purchase for your wife in the interim, and reassess when the fixed term is up?
 
Hi, did you ask UB for break fee, or did you just use 6 months interest?

Even with break fee costs, you'd save net 1,950 interest over the 2 years.

But I agree with Gordon re exploring the pension funding for your wife.
I asked them, that’s the quote for 50k
 
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