Mortgage - Pay Off or Pay Over

B

beachwalker

Registered User
Messages
3
Hi,

I have a house that I rent with a mortgage of €80,000 owing on it. The mortgage is interest only for the last three years and is also a tracker. The rental income is covering the interest only payment plus putting away €150 into an account to cover property costs (cleaning, painting etc).

I am employed and have no other borrowings other than 2,800 on credit card.

Now I have inherited money which pretty much covers the outstanding loan and credit card and I have the following questions - what to do

(1) Pay off the credit card and the mortgage

(2) Pay off the credit card and put remaining money in an account for rainy day/emergency and remain on interest only

(3) Pay off the credit card and put money into an account and take mortgage off interest only and start repaying monthly capital & interest.

(4) Pay off the credit card and put money into an account and take mortgage off interest only and start repaying capital & interest plus pay over extra to clear early.

I am thinking towards number 4 because it (a) starts to clear the mortgage capital and also pays it off sooner (saving some money on interest) but also gives me some security of having cash available should something happen with job etc etc.

Anybody have on thoughts on the options and in particular see any serious hole in option 4 or know a better option.


Thanks
 
(5) Pay off credit card (cos the interest is mental!) and pay large lump sum off the mortgage - returning to principal and interest payments may then be covered by the rental income but would still leave you with a few K to play with.
 
Hi wednesday,

Thanks for reply, I hadn't thought of that option. Will have to work out some figures.
 
You must log in or register to reply here.
Back
Top