Mortgage Repayments reduced by 42% :D
- Thread starter Kine
- Start date
It just goes to show how much difference a few percentage change to the interest rate makes to the monthly repayment on a newish mortgage. A simple fact that seems to have escaped many recent mortgage holders. RTE touched on the 'Residential' version of NAMA this morning (AKA NAMA phase III), the carnage will come when German & France etc recover (and/or we enter a high inflation period) and interest rates rise again.
At the momen ECB rates are 1%, I would consider 3-4% to be "normal" and if inflation became a problem they could push them up to 5-6%?
Hopefully people are treating the current rates as a bonus, and are either saving the difference or using it to over pay their mortgage...
Hopefully people are treating the current rates as a bonus, and are either saving the difference or using it to over pay their mortgage...
Think my mortgage has come down by approx 16% over the last year or so.
I was always on a variable/tracker (can't remember exactly).
Considering wages have remained basically unchanged over that period (bar a couple of months) then I too am a happy bunny.
Long may we have low interest rates.
I was always on a variable/tracker (can't remember exactly).
Considering wages have remained basically unchanged over that period (bar a couple of months) then I too am a happy bunny.
Long may we have low interest rates.
That's just mean.
(0.79% + ECB here)
0.5% + ECB with NIB.
With mortgage gone down and childcare gone up my creche fees are double my mortgage now. Roll on school going age!
I plan on spenign the balance of booze and drugs!
Yeah, I fully realise rates are as low as they'll ever get. I'd be shocked if they were still this low in 12 months from reading most analyst's forecasts. Plan is to save the difference and decide what to do with it when I have a lump sum (rainy day fund!).
A quick, slightly off topic question: Say I save 20k and decide to take it off my mortgage in one go (i.e. mortgage is 100k). Do they take the full amount off the principal amount?
Yeah, I fully realise rates are as low as they'll ever get. I'd be shocked if they were still this low in 12 months from reading most analyst's forecasts. Plan is to save the difference and decide what to do with it when I have a lump sum (rainy day fund!).
A quick, slightly off topic question: Say I save 20k and decide to take it off my mortgage in one go (i.e. mortgage is 100k). Do they take the full amount off the principal amount?
Yeah think they do.
My mortgage is with AIB and I asked about doing this a few years ago when I got married as we would have extra income (of course never got round to throwing a few thousand at it
).They told me just to build up some extra funds in my account, then send them a letter telling them to take what is in my current account off the capital of the mortgage account. They didn't mention any fees or problems.
Must get round to doing that soon
In theory thats what people should be doing but I say lots are just making ends meet and thanking the heavens every day for low interest rates!
Very good point.
However, I hope that people don't get too used to the very low repayments, and plan their lifestyle around these abnormally low interest rates.
My interest bill has dropped from 500+ pm to 160pm, but I have kept my repayment the same.
What will happen as ECB rates move back up from 1% towards 4%? That could be very painful...............
Overpay your mortgage now is your opportunity. Especially if you are in negative equity. You won't become used to having the extra few bob and you'll be mortgage free quicker. Either that or try to fix now if you can get a good rate. Don't see rates being low for long.
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You and me both - is there a smiley for smug?
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z107
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When I was getting my mortgage, 6-7% was "normal".
I would say it'll be many years before mortgage rates will return to (real?) normal of 8-9%.
My parents tell me of a time when they were paying back 16%.