Mortgage or Cash Buyer

G

grainne73

Guest
I have recently sold my house in the Republic and moved up to the North. I am in a position to pay cash in full for a property up here but was just wondering if it would be better to get a small mortage anyway?
 
Re: Mortage or Cash Buyer

Just wondering if it would be any advantage financially to invest some of the money and take out a mortage and in event of say , me dying unexpectedly, the mortage would end and I would still have money in bank to pass onto kids???
 
Re: Mortage or Cash Buyer

But you would be making repayments and mortgage protection life assurance premium payments if you have a mortgage and you would need to crunch the numbers here. In a situation in which one has the money spare and no other pressing need for it (in relation to debt clearance, expenditure or savings/investments) then it would seem to me to make sense to buy with cash. But you haven't really posted details about your overall financial and personal circumstances.
 
Re: Mortage or Cash Buyer

Wouldn't a life assurance policy be cheaper?
 
Re: Mortage or Cash Buyer

Well Grainne, there are a whole lot of considerations for you to take into account, only one of which is the fact that you are now domiciled in the north. Another big one is your overall financial situation, appetite for risk etc.

I am in a somewhat similar situation in that I have cash on deposit to cover the balance of my mortgage (approx €100k) but I am not paying it off because I am getting 4.75% with 30 days notice and while I am paying 5.88% on the mortgage, this effectively costs me 1.15% for the privalege of having cash on hand for an investment opportunity in the coming 12-18 months. I am domiciled down south so the mortgage interest relief is roughly offset by the DIRT on the deposit. There is also the mandatory mortgage protection charge, but is only ~0.1% extra. I consider this to be a reasonable charge for the ability to move quickly.
 
Re: Mortage or Cash Buyer

Munsterbhoy said:
Well Grainne, there are a whole lot of considerations for you to take into account, only one of which is the fact that you are now domiciled in the north. Another big one is your overall financial situation, appetite for risk etc.

I am in a somewhat similar situation in that I have cash on deposit to cover the balance of my mortgage (approx €100k) but I am not paying it off because I am getting 4.75% with 30 days notice and while I am paying 5.88% on the mortgage, this effectively costs me 1.15% for the privalege of having cash on hand for an investment opportunity in the coming 12-18 months. I am domiciled down south so the mortgage interest relief is roughly offset by the DIRT on the deposit. There is also the mandatory mortgage protection charge, but is only ~0.1% extra. I consider this to be a reasonable charge for the ability to move quickly.
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I would agree with this approach aswell.
 
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