Mortgage, savings, SSIAs - Lob all into Mortgage?

[yop]

Lads,

Not sure if in the correct section of the forum so move please if I am not.

We have a mortgage of 220k euro over 25 years.
Mortgage is an Offset/Current account mortgage.

Currently have about 6k odd in the linked Current account -so based on that we are paying interest on 214k euro.

Now we both have accounts, savings and SSIAs outside of the bank where the mortgage is.
Breakdown is :
Outside Mortgage Current Accounts (2) about 14k euro
Mortgage Current Accounts (2) about 6k euro
Outside Mortgage Savings Accounts (1) about 11k euro
SSIA Account (1 Deposit, 1 Equity) about 17k euro
Stocks and shares about 2k euro

So all in all we have about 50k euro "Disposable" income between us, which until last night we did not realise we had at all since it is spread across so many banks and accounts.

The equity SSIA we are coverting to another equity fund and putting 100 euro per month into it.

Car loan costing 200 euro per month. 4 years left on it.

Home improvement to be done, costing in about 10k euro

We intend to close our 2 "rip-off" current accounts and move them to Mortgage bank where the account will be fee free and also linked to the mortgage. Wages of about 5k monthly will be paid into this then also.

Neither have pensions both 31.

So now my questions after the blurb!!


Taking out the home improvments of 10k and the equity SSIA worth 7k we have about 33k euro "floating"

I presume that having this in the current account linked to our mortgage is of great benefit anyways.

Now would it be of better benefit to take the Deposit SSIA of about 10k and put it in a governement pension and receive their topup and continue this on as we will then also receive the tax relief.

If we go down the pensio route we are down to 23k euro, is it best to leave againts the mortgage and "have it" there for a rainy day or just to whack 10k of into the mortgage anyway or would it be even better to put it into a low risk or high risk fund or something?

Any advice how ever small would be greatly appreciated.

thanks

 

[idontknow]

Not an expert and you should be careful about taking advice from people. Really what you should do is talk to a Financial Advisor. My friend went to one who was brilliant. No fee. Some of them try to push you to buy investment products so that they can make commission. However, she found that this was not the case and the information she recieved was really good.

Mortgage
Not sure about what level of interest you save by having funds in linked current account however they generally say you should endeavour to pay off your mortgage as soon as you can (or reduce term) as the interest payable over the entire terms is huge.
Car Loan
Depending on who you have loan with Car loans are top heavy with interest in the first two years i.e. not worth trading in your car for first two years. I got a Car loan from BOS who are not too bad in this respect. However, I am 3 years into a 5 year loan and all of the interest is paid so not worth my while using my SSIA to pay this off.

Pension
You should both definately organise a pension as the interest payable in deposit accounts is erroded by inflation and you gain tax relief from pension. I am quite lucky as my employer has compulsory pension.

As I say best thing to do is to get advise from the experts.. PM me if you need the contact details.